IFC, EBRD Help Aversi Pharma Expand Access to Quality Healthcare Services in Georgia

 IFC, a member of the World Bank Group, and the European Bank for Reconstruction and Development (EBRD) are supporting Aversi-Pharma, one of Georgia’s leading healthcare providers, in expanding access to affordable, high-quality medical care.

IFC will provide a €13 million loan to Aversi, supporting a drive by the company to expand its network of healthcare facilities and provide advanced medical services across Georgia. The EBRD will contribute a €5 million loan to the company’s development. The loans will finance the construction of an advanced oncology center in Tbilisi and an outpatient clinic in Telavi, East Georgia. They will also support the acquisition of state-of-the-art medical equipment for both clinics. Many of those services are scarce in Georgia, especially in the country's outlying regions.

“Accessibility to affordable, high-quality healthcare services is vital for Georgia,” said Paata Kurtanidze, Aversi's founder. “It contributes to the well-being of our society, promotes the country’s development, and reduces poverty. With support from international finance institutions, we plan to meet increased demand for quality healthcare services in Georgia.”

Bruno Balvanera, EBRD Director for the Caucasus, Moldova, and Belarus said: “We are proud to continue our successful cooperation with Aversi. This project is extremely important for the welfare of the population and will help to improve the healthcare infrastructure of the country. EBRD strives to support Georgia in all its aspects of economic development. This project is also important as it fits with EBRD’s strategy to promote higher energy efficiency, competitiveness, innovative product development, and corporate governance standards among local private companies.”

Jan van Bilsen, IFC Regional Manager for the South Caucasus, said, “Companies like Aversi demonstrate the impact that the private sector can have on the healthcare industry in developing countries. As the world’s largest multilateral investor in private health care in emerging markets, with over $1.6 billion committed portfolio in health services and life sciences, we provide private companies with long-term financing and global expertise. That enables them to improve the reach and quality of medical care, making life better for people in countries, like Georgia.”

As a result of its expansion, Aversi, which is one of the largest employers in the country with over 8,000 full-time workers, is also expected to create new jobs. As part of the project, Aversi Pharma will also receive up to $127,000 in grants under the EBRD’s FINTECC capital improvement program. The grants will help the company install insulation, efficient heating systems, improved ventilation, and building management system in its hospitals. In 2015, the EBRD provided the company with financing to expand a hospital in Marneuli and to renovate the Infectious Diseases Hospital in Tbilisi.

Private companies are a key part of Georgia's healthcare system, providing more than 80 percent of the health services in the country. Patients pay only the difference between the fee of the healthcare providers and state's universal health coverage, which makes healthcare services more affordable for the population. The government reimburses hospitals for the services they provide to patients.

Georgia became an IFC member in 1995. Since then, IFC has committed more than $1.2 billion in long-term financing, of which $436 million was mobilized from partners. Those investments covered 55 projects in the financial services, agribusiness, manufacturing, and infrastructure sectors. In addition, IFC has supported more than $331 million in trade through its trade finance program, and implemented a number of advisory projects focused on developing the private sector in Georgia. In fiscal year 2016, IFC invested almost $19 billion in developing countries worldwide.

IFC Supports Improved Access to Affordable, High-Quality Healthcare in Georgia

IFC, a member of the World Bank Group, is supporting Georgia’s largest private healthcare services company, EVEX, as it increases access to high-quality, affordable healthcare services for more than a million people across the country.

IFC will provide a $25 million senior loan to EVEX, supporting the company in financing its healthcare service development program and introducing new services in existing hospitals. That is considered key in Georgia, where many people still lack access to quality and specialized health services, like those provided by EVEX. The company runs 35 hospitals, nine district and 28 express ambulatory clinics across the country.

"I am very pleased to announce the successful completion of an important long-term funding transaction and to start our co-operation with IFC, supporting the sustainable development of the Georgian healthcare sector," said Nikoloz Gamkrelidze, the company’s CEO. "This loan from IFC will help us to renovate hospitals and develop new services, contributing to the successful implementation of our strategy."

Private sector companies are a key part of Georgia's healthcare system, providing more than 80 percent of the health services in the country. The government reimburses private and public hospitals for services they provide to patients, under the state's universal health coverage.

"The private sector plays an increasingly important role in healthcare delivery in Georgia," said Jan van Bilsen, IFC Regional Manager for the South Caucasus. "This investment is part of our strategy to support private participation in this sector, providing innovative, efficient healthcare services that are affordable for a wide section of the population."

While Georgia’s total healthcare expenditure - at 9 percent of gross domestic product - is high compared to other emerging countries, it is largely spent on pharmaceuticals, not health services.

The project is part of a larger effort by IFC to support economic development in Georgia, which became an IFC member in 1995. Since then, IFC has provided more than $1.2 billion in long-term financing, of which $436 million was mobilized from partners. That support covered 55 projects in in sectors such as financial services, agribusiness, manufacturing, and infrastructure. In addition, IFC has supported around $315 million in trade through its trade finance program, and implemented a number of advisory projects focused on developing the private sector.

Healthcare Group, listed on the London Stock Exchange, a subsidiary of BGEO Group PLC.