UST Hospital

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Al-Mawarid International Company for Educational and Health Services (“Al-Mawarid” or the “Company”) is a leading education and healthcare provider in Yemen operating 4 campuses under the University of Science and Technology (“UST”) brand. UST’s medical college at the new flagship campus in Aden requires a teaching hospital which will improve access to healthcare services while enhancing the quality of medical education in the new capital city. Al-Mawarid has embarked in an expansion plan to build a university hospital in Aden (the “Project”). IFC has been invited to provide an 8 year, Shariah compliant secured corporate A Loan of up to US$22mn to, support Phase 1 and 2 as well as for internal cash generation.The construction of the 5-floor hospital will be completed in two phases:Phase 1 has been initiated in 2023 and expected to be completed by the end of 2024. It includes construction of the building and equipping the hospital’s first and second floors, including land purchase (planned capacity of 68 beds, 19 Neonatal Intensive Care Unit (“NICU”), and emergency departments, outpatient clinics, a radiology unit, a surgical and catheterization unit, ancillary departments (laboratory, radiology, pharmacy, operating theatre, anesthesia, and sterilization), ), and the installation of a captive solar power plant to cover part of the campus’s energy needs. Phase 2 includes outfitting the remaining floors to reach a 250-bed capacity, to be funded by a second tranche of the IFC Loan and through internal cash generation. Phase 2 is expected to be completed within a year, with construction to start in the second half of 2024 and completed by the end of 2025.Al-Mawarid is an IFC client, since 2008 (#26455, please refer to its environmental and social (E&S) review summary for details; https://disclosures.ifc.org/project-detail/ESRS/26455/university-of-science-technology), which has been repaid in 2016. During the lifetime of the project and at the time of the exit, further improvement opportunities, that relate to life and fire safety (L&FS) and hazardous waste management, at its Hospital in Sana, were identified, which are expected to be addressed with this new investment in Aden.