Summary of Proposed Investment
Project Number
9292
Company Name
The American British Cowdray Medical Center, I.A.P.
Date SPI Disclosed
Feb 6, 2000
Country
Mexico
Industry
Health, Education and Life Sciences
Status
Completed
Sector
Hospitals and Clinics
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : May 2, 2000
Signed : Feb 7, 2001
Invested : Jul 23, 2001
Project Description
Summary Of Project Information (SPI)
| Project Name | Mexico - Hospital ABC |
RegionLatin America and the Caribbean
Sector
Project No09292
Projected Board DateApril 5, 2000
Company NameAmerican British Cowdray Medical Center I.A.P. (Hospital ABC)
Technical Partner and/or Major Shareholders
Hospital ABC is an Institution de Asistencia Privada (IAP) a non-profit private hospital regulated under the "Ley de Institution de Asistencia Privadas". According to this Law, IAPs must have a philanthropic objective and their profits should not be distributed but be reinvested.
Hospital ABC was established in 1941 and it is governed by a Board of volunteers, all prominent Mexican and expatriate individuals. In addition to its medical reputation, the hospital prides itself on its charitable activities and runs extensive teaching and research programs. The hospital''s facilities include 200 in-patient beds and state-of-the-art medical technology. It offers a full range of diagnostic, medical and surgical services.
Project Cost Including proposed IFC investment
Total project cost is estimated at about US$82 million. IFC''s proposed investment is expected to be in the form of an A loan of up to US$20 million, a syndicated B loan of up to US$14 million and a Stand-by loan of up to US$10 million.
Location of project and Description of site
The project will be located in the Santa Fe section of Mexico City, a fast growing part of the city.
The site was acquired from the Mexico City development agency. It is approximately 67,200 square meters and is empty of any construction or settlement.
Description of Company and Purpose of Project
The project involves the construction of a new hospital facility in Santa Fe that will complement the existing one at Observatorio. It will initially focus principally on out-patient services and will include a specialized ambulatory center (including day surgery), all related diagnostic services, a 24-hour emergency room, a preventive center, 60 beds for hospitalizations and a 100-unit medical offices building. The facility will also include a welfare clinic intended to deliver services to the poor, as per Hospital ABC''s mandate.
Demand for private medical services in Mexico City has grown very fast in the last 5 years. ABC Hospital is operating at high occupancy rates and needs to increase its capacity. In addition, the new facility''s location will greatly benefit the hospital. In a large and congested city like Mexico City, the location of services is a most critical element. In a fast growing competitive environment, location constitutes one of the main criteria determining the relative comparative advantage among the four leading hospitals in Mexico City. Due to space constraints, there is no scope for expansion at the current site, which in addition is located in a slow growing area of Mexico City.
The IFC financing will allow the hospital to increase its capacity and rationalize its operations. Hospital ABC will be able to serve its clients better and in a more efficient manner. IFC’s long term financing is a key element of the project’s financial feasibility. Finally, the proposed transaction is expected to have a demonstration effect to private banks and encourage future support of Hospital ABC and other private sector hospital projects.
Environmental Category and Issues
This is a category B project according to IFC’s environmental and social review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Technical and Environment Department staff.
The is from the InfoShop.
| Host country location of environmental documents | Mr. Santiago Vidal or Mr. Alejandro Alfonso, The American British Codray Medical Center I.A.P., Calle Sur 136 No 116 Col. Americas, Apartado Postal 18901. Delegacion Alvaro Obregon, Codigo Postal 01120 Mexico, D.F. |
Date SPI sent to InfoShop March 6, 2000
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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