The sponsors are the second generation of the Acosta family, a well-known family in Guadalajara with business interests mainly in bus transportation, gas station services and real estate. CMPDH’s key management team is comprised of members of the Acosta family, as well as externally hired professionals. Dr. Ricardo Acosta Gonzalez, an ophthalmologist with many years of experience and well known in the medical sector in Guadalajara, is the Medical Director. Mr. Rodolfo Acosta Gonzalez, previously General Director of the Acosta family’s transportation businesses, is CMPDH’s General Director.

The total project cost is estimated at $36 million. The proposed IFC investment will be up to $18 million, or its equivalent in Mexican Pesos, in the form of a senior secured A Loan. In addition, the sponsors have requested that IFC provide a USD-MXN currency swap for IFC’s first loan of $14.5 million.

17.81 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	17.81
Equity

* These investment figures are indicative

The new hospital will be constructed on a plot of land in the Tlajomulco District of southern Guadalajara, Mexico. The hospital will be located on main highway that is the principal southern entry point into Guadalajara.

The project will: - increase access to healthcare for underserved populations, - act as a “center of excellence” not only for Guadalajara, but for Mexico as a whole, - deepen reach to lower income market segments, - provide opportunities for increased efficiency, allowing for the provision of more cost-effective health services, and - increase the availability of high-skilled employment in the Guadalajara metropolitan area.

Participation in this project would allow IFC to support the expansion of high quality affordable health services in Mexico. In addition to long term financing, which is not easy to obtain for private hospitals in Mexico, IFC would be providing its global health care experience and its focus on financial discipline, an increasingly important aspect for Centro Medico given its longer term growth plans.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Key environmental, health and safety, human resources and social issues in a project in this industry sector include the following:

- Management capacity to manage environmental, health and safety, human resources and social risks and issues;
- Assessment and integrated management systems to ensure environmental, health and safety, human resources and social performance;
- Site selection, acquisition, development and permitting;
- Terms of employment and working conditions;
- Occupational health and safety and implementation of good hospital management practices and employee training programs to prevent nosocomial diseases;
- Quality and sustainability of potable water supply;
- Adequacy of disinfection and sterilization programs;
- Effluent management;
- Monitoring and control of air emissions;
- Solid and hazardous waste management and disposal;
- Hazardous materials management; and
- Life and fire safety in the design, construction and outfitting of new and existing facilities

While all Performance Standards (PS) are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS1: Social and Environmental Assessment and Management System;
- PS2: Labor and Working Conditions;
- PS3: Pollution Prevention and Abatement;
- PS4: Community Health Safety and Security.

Issues relating to PS5: Land Acquisition and Involuntary Resettlement have not been identified and are not expected. Land bought by Centro Medico is located in urban areas, and is purchased on a willing buyer – willing seller basis.

Issues relating to PS6: Biodiversity Conservation and Sustainable Natural Resource Management; PS7: Indigenous Peoples and PS8: Cultural Heritage have not been identified at present. However these aspects will be assessed for all new projects in order to determine applicability.