PROJECT

Projects

Environmental & Social Review Summary

Project Number

26113

Company Name

ZARA INVESTMENT HOLDING CO. LTD

Date ESRS Disclosed

Jun 20, 2007

Country

Jordan

Region

Middle East

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Feb 28, 2008
Signed : Feb 28, 2008
Invested : Jun 19, 2008

Sector

Resort Hotel (Including Lodges)

Industry

Tourism, Retail and Property

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

The project involves funding Zara’s current expansion program and assisting in restructuring its balance sheet that has been affected by the instability in the region. Specifically, IFC’s corporate loan will be:

- for partial financing of the Zara’s hotel at Tala Bay -- a four-star 450 room hotel in Tala Bay Resort on the Red Sea near Aqaba, along with other potential expansions in Jordan; and
- for refinancing some of the company’s existing debt.

Overview of IFC's Scope of Review

IFC’s review comprised site-based inspection visits to the Zara’s existing hotels in Jordan, i.e: the Grand Hyatt and Intercontinental in Amman, and the Mövenpick Dead Sea, Aqaba, Petra, and Nabatean Castle hotels. At these properties, discussions were held with hotel General Managers, Chief Engineers and Human Resources staff as appropriate to understand how the hotels manage environmental and social, including Human Resources issues, and to determine the environmental issues associated with each property. A site visit was made to the (under construction) Tala Bay hotel: following the visit discussions were held, and information exchanged with the designer of mechanical and electrical services. Further discussions were held with Iberotel, the company that shall operate the hotel, about their management of environmental and human resources issues, and written information provided by Iberotel was reviewed.

All operating hotels provided written information to IFC about their environmental performance, and in particular their energy and water consumption. This information was reviewed. In addition, short (draft) environmental audits of Mövenpick’s Dead Sea and Petra properties, prepared by Aeloki Ltd as part of the Good Environmental Performance in the Tourist Accommodation Sector in Jordan (GREENTAS) initiative were reviewed. Finally, an environmental impact assessment, prepared in 2001 for the then-proposed Tala Bay Tourism Project was reviewed.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Client Documentation

File Name Actions
ESAP Zara 26113.pdf