Summary of Proposed Investment
Project Number
10171
Company Name
ABERCROMBIE & KENT BOTSWANA PTY LTD
Date SPI Disclosed
Apr 12, 2000
Country
Botswana
Industry
Tourism, Retail and Property
Status
Completed
Sector
Resort Hotel (Including Lodges)
Department
Regional Industry - MAS Africa
Environmental Category
B - Limited
Previous Events
Approved : Jun 30, 2000
Signed : Jul 13, 2000
Invested : Sep 5, 2000
Project Description
Summary Of Project Information (SPI)
RegionSub-Saharan Africa
Sector
Project No010171
Projected Board DateMay 12, 2000
Company NameAbercrombie & Kent Botswana (Pty) Ltd
Technical Partner and/or Major Shareholders
The sponsor of the project is Abercrombie and Kent SA, registered in Luxembourg. The A&K Group is controlled by Mr. & Mrs. Jeff Kent, US citizens. The Kent''s have built-up A&K into a leading tourism company in Africa and other continents. A&K Botswana is part of an A&K South Africa group with its management centre in Johannesburg. IFC has made two loans so far to A&K in Southern Africa and we are impressed by the way the operations are conducted.
Project Cost Including proposed IFC investment
The total project cost is US$4,059.000. IFC proposes to lend US$1,970,000.
Location of project and Description of site
The 15-acre site is located at Kasane, adjacent to Chobe National Park.
Description of Company and Purpose of Project
A&K (Botswana) was set-up in 1998 to run the A&K Group operations in that country. It first built Chief''s Lodge in the Moremi Game Reserve, which is at the heart of the Okavango Delta. This lodge opened in September 1999 and has, so far, reached an occupancy level of 48%. Its clients are drawn from the upper end of the Safari market. The new Chilwero Lodge is located much closer to Victoria Falls and will mainly draw on that market. There is good road access between Chobe and Victoria Falls. Chilwero Lodge will therefore provide a safari experience in Chobe without the need for private air charter into the Delta. This appeals to a slightly different market and widens the scope of A&K operations in Botswana.
Chilwero was an old, 16-bed lodge which A&K took-over in 1998. The old lodge has now been demolished and A&K is about to start building the new structure. The footprint of the new lodge is similar to the old one except for the addition of eight, two-bed chalets. The style of the new lodge is more luxurious and it will be much more suited to today''s markets.
Tourism is the most important industry in northern Botswana and the expansion of the lodge will help attract increased numbers of visitors as well as provide more employment opportunities for local people and rental income for the local land board, which uses the revenue to improve facilities in the area. While Botswana is a middle income developing country, it is striving to foster tourism in an effort to reduce dependence on diamond production. By supporting the development IFC is providing long-term project finance which is not readily available across the board.
Environmental Category and Issues
This is a category B project according to IFC''s environmental review procedure. Key environmental, health and safety issues of potential concern in this project include site selection criteria; compliance with all relevant laws and regulations of the Botswana Department of Wildlife and National parks; source of water and power including fuel storage, if applicable, recycling and disposal of solid wastes; disposal of liquids wastes, including grease, waste oils and sewage; impact of construction and operation on the riverine ecosystem, including access of local wildlife populations to the Chobe rivers; impacts on the surrounding area of auxiliary recreation activities such as game viewing and other activities; impacts on vegetation and wildlife of infrastructure including game trails, roads, staff housing and air strip, if applicable; impacts on local communities; public consultation with interested or affected parties; health and safety issues pertaining to game walks, boating and recreation activities; use of CFC-free storage; employee training, health and safety; and fire safety and emergency response measures. The sponsor has confirmed that the rebuilt lodge and ancillary facilities will be situated within the development site of the existing lodge. IFC is reviewing environmental information provided by A&K, as well as the project appraisal summary.
Details of proposed operating procedures and mitigation measures are provided in the project Environmental Review Summary (ERS).
The ERS is available from the InfoShop.
Host country location of environmental documentsIn Gaborone:
Price Waterhouse Gaborone
Contact Person: Mr. Matthews
Physical Address:
Plot 50365
Gaborone Showground
Postal Address:
P.O. Box 1453
Gaborone
Tel:(09267) 351 081
Fax:(09267) 351 668
In Kasane
Kasane Enterprises
Contact person: Heather Carr-Hartley
Physical Address:
Plot 709
Audi Centre
Kasane
Tel: (09267)650 234
Date SPI sent to InfoShop April 12, 2000
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
Related ESRS/ERS
