WASHINGTON, D.C., October 27, 1998 --- The International Finance Corporation is financing its first health sector project in Latin America, a private hospital in Cordoba, Argentina, as part of its focus on innovative investments and health care projects, in particular.
IFC will provide US$9.6 million to help Hospital Privado de Cordoba finance its $20.4 million project to expand, renovate and rationalize operations. The project includes construction of a new three-story building, upgrading existing facilities, acquiring new medical equipment, creating satellite health centers and improving management information systems.
Karl Voltaire, Director of IFC's Latin America and Caribbean Department said the investment was the first deal completed by a new Health Unit that was recently established within the Latin America group to respond to a fast-growing demand for financing private health care -- a relatively recent area for private sector investment. He said the project fits well with a World Bank Group sectoral approach and will contribute to the Government of Argentina's ongoing reform objectives in the health sector.
The Cordoba project will make the hospital a more efficient and cost-effective provider of health care services, serving patients from many social and economic groups. IFC's financing offers access to long-term financing that is otherwise unavailable to Argentine private health providers. Success of the project will serve to show other potential investors in Argentina that private health care projects can be attractive and have developmental value.
IFC, part of the World Bank Group, fosters economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses.7
