Summary of Proposed Investment
Project Number
10562
Company Name
Villa Santi
Date SPI Disclosed
Jul 10, 2001
Country
Lao People's Democratic Republic
Industry
Tourism, Retail and Property
Projected Board Date
Aug 13, 2001
Status
Completed
Sector
Resort Hotel (Including Lodges)
Department
Regional Industry - MAS Asia & Pac
Environmental Category
B - Limited
Previous Events
Approved : Jun 22, 2001
Signed : Jun 27, 2001
Invested : Jul 23, 2001
Project Description
The project is to expand hotel operations by adding 56 rooms to the existing 25 rooms; in addition a garden and recreation/sports facilities will be added with the overall concept being a garden resort. The project''s concept responds directly to increasing demand for better quality rooms and tourist facilities in Luang Prabang.
IFC''s involvement in this project enables long term loan financing for the project, both in terms of the IFC loan as well as a parallel loan from a local bank. The local bank has approved their loan because of the IFC managed Mekong Project Development Facility (MPDF) assistance to the project and IFC''s proposed financing. Without IFC, significant long term funds would not have been available, and thus, the project would not have been able to go forward at this time. The project has been developed with the assistance of MPDF, who has worked with the company for over a year to strengthen the project plan and, in particular, improve the hotel''s management capabilities and increase training of staff.
Funds are sought under the IFC''s Extending the Reach Program. With its 100% Lao ownership, the project fits both MPDF''s and the IFC Extending the Reach Program''s shared objective to promote development of local small and medium scale enterprises. The venture is also in line with IFC''s overall strategy to support Lao PDR''s transition to a market economy while helping to meet the country''s need to earn and save foreign exchange. The project will have a demonstration effect for local banks by encouraging them to develop stronger capacities to evaluate risk, and consider other projects, in the Lao PDR tourism sector.
The project is in line with the Wold Bank Group long term strategy to reduce poverty, promote infrastructure, and promote human resource development, as well as fitting the World Bank Group strategy to promote macroeconomic stability and further enable the environment for private sector development.
IFC''s involvement in this project enables long term loan financing for the project, both in terms of the IFC loan as well as a parallel loan from a local bank. The local bank has approved their loan because of the IFC managed Mekong Project Development Facility (MPDF) assistance to the project and IFC''s proposed financing. Without IFC, significant long term funds would not have been available, and thus, the project would not have been able to go forward at this time. The project has been developed with the assistance of MPDF, who has worked with the company for over a year to strengthen the project plan and, in particular, improve the hotel''s management capabilities and increase training of staff.
Funds are sought under the IFC''s Extending the Reach Program. With its 100% Lao ownership, the project fits both MPDF''s and the IFC Extending the Reach Program''s shared objective to promote development of local small and medium scale enterprises. The venture is also in line with IFC''s overall strategy to support Lao PDR''s transition to a market economy while helping to meet the country''s need to earn and save foreign exchange. The project will have a demonstration effect for local banks by encouraging them to develop stronger capacities to evaluate risk, and consider other projects, in the Lao PDR tourism sector.
The project is in line with the Wold Bank Group long term strategy to reduce poverty, promote infrastructure, and promote human resource development, as well as fitting the World Bank Group strategy to promote macroeconomic stability and further enable the environment for private sector development.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Santi Inthavong
Owner-Villa Santi
Sakkarine Road
P.O.Box 682
Luang Prabang
Lao PDR
Tel: 856 71 212267 / 856 20 570072
Fax: 856 71 252158
Owner-Villa Santi
Sakkarine Road
P.O.Box 682
Luang Prabang
Lao PDR
Tel: 856 71 212267 / 856 20 570072
Fax: 856 71 252158