Notice

Category B project supported: Burns hospital, Angola

Published 31 October 2022

1. Project description

UK Export Finance (UKEF) has agreed to provide support to the Ministry of Finance, Angola for the design, construction, equipping and operation of a burns hospital in the city of Kilamba, Angola. ASGC UK Limited (ASGC, “the Exporter”) is the Management Contractor who is responsible for overseeing the design, construction and equipping of the hospital. The consortium of Omatapalo Engenharia e Construcao SA Angola and Omatapalo Engenharias e Construcao SA Portugal is the Principal Works Contractor (PWC). The PWC will be responsible for undertaking the construction works on the site. The PWC also has a two-year training and maintenance contract, after which the full operation and maintenance of the hospital will be undertaken by the Ministry of Health.

The hospital will have seven floors and capacity for 250 beds. The hospital will offer general hospital healthcare services such as accident and emergency, palliative care, general and paediatric clinics, surgery, geriatric care, pathology services, transfusion services, a physiotherapy service, and infection control and prevention. It will also have a dedicated ward for treatment of burns.

The Project aims to increase the level of medical services in Kilamba.

The Project does not include any Associated Facilities^{[footnote 1]}.

2. Project sector

The Project is in the civil construction (healthcare) sector.

3. Project sponsors

The Project is being developed by the Angolan Ministry of Health.

4. UK exporters

ASGC UK Limited (AGSC).

5. Export Credit Agent Bank

Standard Chartered Bank.

6. Amount of UK Export Finance support

The principal value of the UKEF support is approximately EUR 150 million.

7. OECD common approaches and equator principles

UKEF categorised the Project as a Category B i.e. having environmental, social and human rights (ESHR) impacts that are few in number, site-specific, few (if any) of which are irreversible, and for which mitigation measures are more readily available) in accordance with the definition in the 2012 (Revised 2016) OECD Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (the “OECD Common Approaches”).

The Project also falls under the scope of the Equator Principles (July 2020).

8. Environmental, social and human rights standards

Project related ESHR documentation was reviewed for alignment against the 2012 International Finance Corporation (IFC) Performance Standards (PS) on Environmental and Social Sustainability and the World Bank Group Environmental, Health and Safety (EHS) Guidelines.

The applicable IFC PS were:

• PS1: Assessment and Management of Environmental and Social Risks and Impacts,
• PS2: Labour and Working Conditions;
• PS3: Resource Efficiency and Pollution Prevention;
• PS4: Community Health, Safety and Security;
• PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources; and
• PS8: Cultural Heritage.

The applicable World Bank Group EHS Guidelines were:

• General EHS Guidelines (2007),
• EHS Guidelines for Health Care Facilities (2007); and
• EHS Guidelines for Water and Sanitation (2007).

9. Nature of ESHR Impacts

The review of potential ESHR risks and impacts took into account the following impacts, receptors and issues during the construction and operational phases of the Project:

• Climate change;
• Noise and vibrations;
• Hazardous materials management;
• Waste and wastewater management;
• Air emissions;
• Water resources;
• Worker welfare;
• Management of third-party contractors and suppliers;
• Grievance mechanisms;
• Occupational health and safety;
• Emergency planning and response;
• Traffic management;
• Cultural heritage;
• Community engagement;
• Community health, safety and security.

10. Assessment of ESHR impacts

A review was undertaken in line with the requirements of the OECD Common Approaches to identify potential ESHR risks and impacts of the Project and how these would be effectively managed.

The review included:

• Desk-based review of project-related documentation: Environmental and Social Impact Assessment, Environmental and Social Management Plan, and Stakeholder Engagement Plan; and
• Follow-up meetings with relevant Project representatives.

The results of this review formed the basis for the evaluation of the Project’s alignment with relevant international standards, and recommendations for future compliance and monitoring.

11. Climate change considerations

UKEF considered the potential direct and indirect greenhouse gas (GHG) emissions of the Project and effects of climate change factors on the Project as part of our ESHR review. The Project comprises the construction of a hospital, which is not considered to be carbon intensive undertaking (such as fossil fuels or petrochemical) and so “high” Scope 1 and 2 GHG emissions in excess of relevant thresholds for quantification and reporting set by international standards were reasonably not envisaged. Furthermore, a material increase in road traffic with associated GHG (Scope 3) emissions is not anticipated as many of the journeys to the hospital are likely to be displaced from existing hospitals. The Project design has considered potential physical impacts of climate change such as changes to rainfall and weather patterns.

12. Decision

Various actions have been agreed between the Project developers, operators, and parties involved in the financing, which are necessary to ensure the Project’s on-going alignment with international standards. Following agreement of these commitments, it was concluded that the Project should meet the relevant international standards over the Project cycle and UKEF therefore decided to provide its support in respect of the supply of capital goods and services by the UK exporter to the Project.

A condition of support is that the Project will be subject to environmental and social monitoring in order to provide satisfaction that the Project is aligned with the relevant international standards throughout the duration of support.

UK Export Finance

October 2022

1. OECD Common Approaches defines “Associated Facilities” as: those facilities that are not a component of the project, but that would not be constructed or expanded if the project did not exist and on whose existence the viability of the project depends; such facilities may be funded, owned, managed, constructed and operated by the buyer and/or project sponsor or separately from the project. ↩