Summary of proposed guarantee
Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- HDC Cardiac Hospital
- Project ID
- Fiscal year
- Guarantee holder
CEE Hospital Development Company GmbH
- Investor country
- Host country
Bosnia and Herzegovina
- Environmental category
- Date SPG disclosed
- November 22, 2011
- Projected Board date
- January 31, 2012
- Gross exposure
- $16.2 million
- Project type
- Strategic priority area
- Environmental and Social Review Summary for HDC Cardiac Hospital in Bosnia and Herzegovina
This summary covers an investment by CEE Hospital Development Company GmbH of Austria in the design, construction, and operation of a cardiac surgery hospital in Bosnia and Herzegovina. Investments will be made through local subsidiary HDC Projektovanje, Izgradnja i Konsalting d.o.o. The investor has applied for a MIGA guarantee of € 12 million ($16.2 million equivalent) for a period of up to 16 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.
The cardiac surgery hospital in Republika Srpska, Bosnia and Herzegovina will provide diagnostic, cardiology, and cardiovascular surgery services for adults and children.
The project will operate under a 15-year public-private partnership contract ("PPP") awarded as part of a competitive bidding process to CEE Hospital Development Company GmbH, a company formed by two Austrian firms with expertise in planning and development of hospitals and medical technical equipment and a Bosnian construction company with hospital construction experience: Gesellschaft für Sicherheit in der Medizin GmbH, Odelga Handelsgesellschaft m.b.H., and Aragosta Invest d.o.o.
The project is a category B under MIGA’s Policy on Social and Environmental Sustainability. The project may have impacts related to dust, noise, solid waste, hazardous waste, hazardous materials, occupational health and safety, and community health and safety. The project is expected to comply with relevant European Union directives.
Click here to view the Environmental and Social Review Summary.
The project is part of an effort by the government of Republika Srpska to improve the access and quality of the health services provided to its population. Currently, there is no cardiac surgery facility in Republika Srpska and patients must be transferred to Tuzla (Federation of Bosnia and Herzegovina), Serbia, or Montenegro—often facing long waiting periods for treatment. The new hospital will provide capacity for up to 1,300 cardiac surgery patients per year.
The proposed guarantee is in line with the World Bank’s Country Partnership Strategy for Bosnia and Herzegovina that seeks to improve access to quality and efficient health care, especially as health outcomes in the country lag behind others in the region.
The proposed guarantee is also in line with MIGA's strategy and business priorities of supporting investments in conflict-affected environments.