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SECTION I: NON-CONFIDENTIAL PROJECT INFORMATION
Host Country: Kenya
Name of Borrower: Bridge International Academies Limited, an entity organized under
the laws of Kenya (“Bridge International”, “Bridge” or the
“Company”).
Project Description: Development and operation of 237 low-cost private schools, an
expansion upon Bridge International Academies’ 133 schools
currently operating in Kenya. These schools will educate an
estimated 300,000 children by 2022.
Proposed OPIC Loan: $10,000,000 with a 10-year tenor including a 4-year grace period
Total Project Costs: $26,000,000
U.S. Sponsor: NewGlobe Schools, Inc. (“NewGlobe Schools” or the “Parent
Company”), a Delaware corporation
Policy Review
U.S. Economic Impact: The project is not expected to have a negative impact on the U.S.
economy as it provides educational services within the host
country. There will be no U.S. procurement associated with this
project, so the project will have a neutral impact on U.S.
employment. The project will have a net negative impact on the
U.S. balance of payments over the first five years.
Developmental Effects: This project will have a highly developmental impact with the
expansion of low-cost pre-primary and primary education in
Kenya. The investment will provide high quality education to rural
and poor urban children utilizing technologically advanced datadriven systems to manage operations, finance and classroom
instruction. The project creates jobs and provides training for its
employees for professional development, while introducing new
technology and data-driven management techniques in the
education sector.
Environment: Bridge International Academies is seeking a direct OPIC loan to
expand its financing of low-income private schools in Kenya (the
“Project”).
Screening: The Project has been reviewed against OPIC’s
categorical prohibitions and has been determined to be
categorically eligible. Projects involving loans to schools which
involve construction are screened as Category B projects under
OPIC’s environmental and social guidelines because impacts are
site-specific and readily mitigated. The primary environmental and
social issues associated with the Project include the need for
appropriate solid and sanitary waste disposal, the supply of potable
water for drinking, assurances that during remodeling and
construction adequate occupational health and safety measures are
in place to protect workers, that appropriate land acquisition
measures were taken when applicable, and the need for a robust
environmental and social management system to ensure that
individual school projects are developed, implemented, and
managed in accordance with IFC Performance Standards 1 though
8 and IFC’s General Environmental Health and Safety (EHS)
Guidelines.
Applicable Standards: Under OPIC’s Environmental and Social
Policies, the Borrower is required to comply with applicable
national laws and regulations related to environmental and social
performance. OPIC’s environmental and social due diligence
indicates that the investment will have impacts which must be
managed in a manner consistent with the following Performance
Standards (PS) of the International Finance Corporation (IFC):
• PS 1: Assessment and Management of Environmental and Social
Risks and Impacts;
• PS 2: Labor and Working Conditions;
• PS 3: Resource Efficiency and Pollution Prevention; and
• PS 4: Community Health, Safety and Security;
• PS 5: Land Acquisition and Involuntary Resettlement;
• PS 6: Biodiversity Conservation and Sustainable Management of
Natural Resources;
• PS 7: Indigenous Peoples; and
• PS 8: Cultural Heritage.
The Borrower represents that any land purchases (as opposed to
leases) on which schools will be constructed will be purchased
from existing land owners voluntarily at market rates. The
Borrower represents that no persons will be physically or
economically displaced nor will there be any impacts on indigenous
peoples or cultural heritage as a result of any schools that will be
constructed as part of the Project. In addition, the Borrower
represents that no greenfield construction will occur; all school
buildings will be constructed on previously cleared and utilized
property, usually for residential or commercial purposes. However,
because the sites for the Project are unknown, OPIC will require the
Borrower to incorporate certain prohibitions and requirements in
the loan agreements, have systems to assess and address potential
impacts relevant to PS 5, 6, 7, and 8 incorporated into their
Environmental and Social Management System (ESMS), and
submit an annual report on newly constructed schools. The Project
will be required to meet applicable provisions of the IFC’s General
Environmental Health and Safety (EHS) Guidelines.
Workers Rights: OPIC’s statutorily required standard worker rights language will be
supplemented with provisions concerning the right of association,
organization and collective bargaining, minimum wage, hours of
work, the timely payment of wages and hazardous working
situations. Standard and supplemental contract language will be
applied to all workers of the Project. The Project will be required to
operate in a manner consistent with the requirements of the
International Finance Corporation’s Performance Standard 2 on
Labor and Working Conditions.
Human Rights: OPIC issued a human rights clearance for the Project on September
21, 2012 |