Shangri-La Asia Limited (“Shangri-La”), headquartered in Hong Kong, is a leading owner and operator of deluxe hotels and resorts primarily in Asia. Shangri-La is listed on the Hong Kong Stock Exchange.

Kuok (Singapore) Limited is an investment holding company based in Singapore and Kerry Holdings Limited is an investment company based in Hong Kong.

Shangri-La, Kuok (Singapore) Limited and Kerry Holdings Limited and their subsidiaries together own the entire share capital of the Project companies.

Total Project cost is expected to be US$241 million and IFC is considering the provision of a debt financing package of up to US$80 million.

80.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	80.0
Equity

* These investment figures are indicative

The Project will take place at the existing Traders Hotel in downtown Yangon and a 15-acre site near the Kandawgyi Lake.

(i) Construction of critical business infrastructure: The Project will add much-needed supply of international standard hospitality infrastructure to Yangon. International standard business infrastructure such as these are of critical importance in driving foreign investments in the country.

(ii) Improvement of hotel service standards: The Project will improve the standards of accommodation facilities and services available to travelers and the business community. While Shangri-La''s extensive training and high operating standards will assure guests of a high-quality product, it will also encourage broad improvements in the standards of existing hotels.

(iii) Employment creation and knowledge transfer: The Project will create a significant number of direct and indirect employment opportunities for the local community both during construction and operational phases. It will also promote the transfer of hotel management expertise and knowledge to the local staff.

(iv) Benefits to the local economy and local linkages: The Project will help create demand for locally-sourced materials, services, and labor both during the construction and operation stages. The Project is expected to generate additional sales for local small and medium enterprises, including a wide range of goods and service providers.

(v) Increase in tax revenues and foreign exchange: The Project is expected to contribute to the domestic economy through increased tax revenues and foreign exchange inflow, particularly as it is expected that a significant portion of the users (hotel guests and apartment lessees) will be foreign nationals and that the majority of Project revenues will be paid in foreign currency.

(vi) Private sector development: The presence of these large scale developments in Yangon will send a positive signal about Myanmar, particularly to other foreign investors who are considering investments in the country.

IFC''s additionality includes: (i) provision of long-term foreign currency financing that suits the Project''s cashflow cycle; (ii) supporting a long-term IFC client in an IDA country; and (iii) sending a positive message to potential foriegn investors interested in operating in Myanmar, a country that is currently in a transition mode and needs foreign investment for its growth.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific and reversible environmental and social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Key environmental, health and safety, human resources and social issues that were reviewed included the following: environmental and social management system; emissions to the environment – air and water; hazardous waste and materials management; life and fire safety and emergency preparedness and response; community and occupational health and safety; water and energy use and efficiency; cultural heritage preservation, and community engagement.



Traders Hotel and Shangri-La Residences sites are owned by Government Ministries. Shangri-La leased both sites from those Government counterparts about 15-20 years ago in the early to mid-1990’s. IFC’s review, including interviews with local residents near the sites, does not find material PS5 issues. The construction workforce consists mainly of the mainstream Burmese ethnic group while some workers are from the Karen ethnic minority group. Traders Hotel also employs a number of ethnic minority staff. IFC’s review has not identified any adverse impacts of the Project on ethnic minority workers. Project activities, all within the central area of urban Yangon, are not expected to impact on local biodiversity. PS5, PS6 and PS7 are therefore not triggered.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.