Notice

Category B project supported: Paediatric and maternal hospital, Guyana

Published 4 October 2022

© Crown copyright 2022

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/publications/category-b-project-supported-paediatric-and-maternal-hospital-guyana/category-b-project-supported-paediatric-and-maternal-hospital-guyana

1. Project description

UK Export Finance has agreed to provide support to Guyanese Ministry of Finance in respect of the construction and goods supplied by VAMED Engineering GmBH to the Ministry of Health for the construction and operation of a Paediatric and Maternal Hospital in Guyana.

The Project consists of the design, construction, installation of equipment and operation of a paediatric and maternal hospital in the outskirts of Georgetown, the capital of Guyana. The hospital will have five floors and capacity for 256 beds. It will occupy an area of 24,000 m2 (main hospital building and technical support building). The hospital will also include a visitors car park.

The hospital will offer special care services to new-borns, infants, children, and mothers, serving as a national referral hospital. It will provide state of the art care for mothers and children, helping to reduce maternal and child mortality rates in Guyana.

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 Guyanese Ministry of Health.

4. UK exporters

VAMED Engineering GmBH

5. Export Credit Agent Bank

UniCredit Bank Austria AG

6. Amount of UK Export Finance support

The principal value of the support is approximately EUR 160 million

7. OECD common approaches and Equator Principles

UK Export Finance categorised the Project as 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”) and the Equator Principles (2020).

8. Environmental, social and human rights standards

Project related (ESHR) documentation was reviewed for their 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
  • PS8: Cultural Heritage

The applicable World Bank Group EHS Guidelines were:

  • General EHS Guidelines (2007)
  • EHS Guidelines for Health Care Facilities (2007)
  • 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:

  • Air emissions
  • Climate change
  • Noise and vibrations
  • Hazardous materials management
  • Waste and wastewater management
  • Water resources
  • Emergency planning and response
  • Worker welfare
  • Management of third-party contractors and suppliers
  • Grievance mechanisms
  • Occupational health and safety
  • 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 and Equator Principles 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 Plans, and Stakeholder Engagement Plan; and
  • Follow-up meetings and interviews 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.

Taking account of the review, the Project was deemed to have potential to cause a few adverse environmental and social impacts both during construction and operation. However, a proposed suite of controls as part of the Project’s environmental and social management systems should facilitate the management of these impacts.

11. Climate change considerations

UKEF considered the potential direct and indirect green house gas (GHG) emissions of the Project and effects of climate change factors on the Project as part of its ESHR review.

The Project comprises the construction of a hospital, which is not considered to be a 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. The Project design has considered potential physical impacts of climate change such as river flood hazards.

12. Decision

A few actions have been agreed between the Project developer, operator, 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. UKEF has therefore decided to provide its support in respect of the supply of goods and services by the UK exporter to the Project.

A condition of support is that 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. ↩

Back to top