7.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	7.0
Equity

* These investment figures are indicative

Summary: The most significant expected project-level outcomes are (i) Economy-wide effects through employment creation and value addition and (ii) environmental effects through its impact on GHG emissions reduction. At the market level, it will improve the competitiveness of the Nepal tourism industry. Project Outcomes Economy-wide effects: The Project, which supports the development of serviced apartments in Kathmandu is expected to have various positive economy-wide effects, including direct job creation, contribution to GDP, and higher tax revenues for the government. It is anticipated that the Marriot serviced apartments will employ about 48 people for its operations and about 80 people during its construction phase. The construction and operation of the apartments is expected to create opportunities for local suppliers including those specializing in cements, steel, blocks, tiles, plumbing and other related services. Environmental effects: The Project will support resource efficiency initiatives of a leading player in Nepal, including deployment of energy friendly technology and equipment, and the obtention of EDGE certifications, thereby reducing the overall GHG emissions of the apartments. Additionally, given Nepal’s sustainability to earthquakes, the company has adopted Seismic Damper walls across the building to enhance its structural resilience, becoming the first residential apartment building in the country to do so. Contribution to Market Creation Competitiveness: This Project will improve competitiveness of the tourism market in Nepal by introducing a new long-stay offering and attracting new developments and investments into the segment through demonstration and replication channels. It supports current efforts to diversify product offerings in Nepal’s tourism industry through the introduction of a branded serviced apartments to meet the needs of a different class of tourists that are currently not served by existing hotels.

Financial Additionality: Financing structure: IFC will provide a long-term loan (12 years) with an extended grace (4 years), which is not readily available for the company in the local market. Non-Financial Additionality: Knowledge, Innovation, and Capacity Building: Through this engagement, IFC will help the company improve its capacity in the areas of (i) management contract negotiations (ii) labor standards (iii) corporate governance and (iv) green and resilient buildings. Standard setting: IFC will help the company improve its E & S standards, in line with IFC’s performance standards.

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.