Grupo Salud is a holding company, grouping Oncosalud (the current operation) and other new projects, including Clinica Delgado. The new legal entities and the holding will replicate Oncosalud's current shareholder structure: Enfoca thorugh Fund “Descubridor 1” (managed by Enfoca SAFI) and the remainder held by 7 members of the families that originally owned Oncosalud. Grupo Salud’s main strategic objective is to forward integrate into health provision. Oncosalud has over 20 years of experience in the Peruvian market and around 400,000 members. Enfoca SAFI is a Peruvian private equity fund, managed by a local team of investment professionals, which aims to invest in mid-market companies in Peru and some of its neighboring countries. The Fund had a $50 million initial first closing with local pension funds and later increased its size to $175 million. In Dec/09, IFC committed $15 million to the second fund closing.

Total project cost is estimated at $70 million for the construction of Clinica Delgado. The proposed funding consists of a $25 million A loan for IFC’s own account and a $15 million parallel loan from DEG.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
Equity

* These investment figures are indicative

The project will be built in modern Lima, in the Miraflores neighborhood, on a plot donated to the Red Cross solely for the construction of a health facility. Grupo Salud has signed a 40-year lease with the Red Cross to use this plot for the construction of Clinica Delgado.

(i) Creation of high quality health services provider as a center of excellence in Peru ; (ii) Demonstration effect on viability of private health care institutions; (iii) Provision of services to middle and lower income patients through PPP facility (Trecca) which will benefit from the flagship hospital within the group, despite not being financed by IFC

IFC is expected to support the Company in various ways including: (i) provision of long-term financing (including final maturity and grace period) for a sector that normally has limited access to such funds; (ii) access to industry contacts and best practices; (iii) industry expertise in healthcare, including an understanding of greenfield health care operations.

Grupo Salud has agreed to an ESAP for social, environmental affairs, quality, occupational health and safety (SEMS). Conditions of disbursement agreed upon are:

Appointment of E&S manager reporting to senior management
E&S Impact Assessment (ESIA) to address environmental and social impacts during construction and future operations
Occupational health and safety management systems procedure
Retain a radiation protection scientific/technical expertise, satisfactory to IFC, to supervise the construction of the oncology facilities
Life and fire safety system design
Design and implement community engagement program procedure
Management Systems procedures addressing chance finds for cultural heritage

Highlights of ESAP are:
The ESAP developed and agreed with the Client is geared to operate a social and environmental management system to address and manage impacts during the construction as well as during the operational phase. It is envisaged that on completion of the construction, the Grupo Salud hospital will be operating in a manner consistent with Peru national law, IFC performance standards, WBG EHS General Guidelines, and health care facilities EHS guidelines. The likelihood of E+S impacts has been evaluated based on the project implementation phases including construction, commissioning, operation, and maintenance.
During construction ESAP items will be addressing occupational health and safety of the workers; life and fire safety master plan design and certification; community engagement procedures to address impacts resulting from traffic, dust, and noise from construction equipment; generation of waste; chance finds procedure; and quality assurance during construction of the oncology facilities. The key E+S issues associated with the operational phase will encompass labor relations, including implementation of good hospital management practices, employee health and safety and radiation exposure monitoring; life and fire safety implementation, emergency contingency plan; food safety and hygiene; water conservation management procedure, pretreatment, adequate emergency level of potable water; hazardous and non-hazardous waste management including disposal of radioactive waste as per Peruvian Regulation and International Atomic Energy Agency international Standards; establish procedure to ensure efficient energy and water use; community engagement and handling of grievances; pest and rodent management system.

** Additional to IFC’s ESAP Grupo Salud has approval of traffic impact by Lima’s transportation authorities, permits from Peruvian