—Private Sector Initiatives Extended to Social Sectors—
WASHINGTON, D.C., Nov. 20—The International Finance Corporation (IFC) will invest US$8 million in Duncan Gleneagles Hospitals Limited to assist in the construction of a 270-bed multi- specialty hospital in Calcutta, India. This US$29 million hospital, which will be equipped with advanced diagnostic and surgical facilities, represents IFC's first investment in healthcare in South Asia. It is consistent with the Corporation's increasing emphasis on extending its development activity to support private initiatives in social sectors, such as health care and education where there are substantial needs for investment.
IFC's financing will consist of a loan of up to US$7 million and an equity investment of up to US$1 million. An investment agreement was recently signed between IFC and the company.
Originally conceived by the Duncan Goenka group, the project is being set up as an equal joint venture between Duncan Goenka and Gleneagles Development Pte Ltd., Singapore, which belongs to the Gleneagles healthcare chain, a leading private hospital operator in Asia. Gleneagles Management Pte Ltd., an affiliate of the overseas sponsor, will manage the hospital on contract. The hospital is expected to be fully operational in early 1998.
Mr. Rashad Kaldany, Director of IFC's Asia II Department said, "The project represents growing private sector involvement in the provision of quality health care in India. It is also unique in being amongst the first major foreign joint venture hospitals in the country promoting technology transfer and foreign investment in this sector."
IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
