21745 - Occidental DR

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Summary of Proposed Investment

Project Number

21745

Company Name

Occidental Hotels Management B.V.

Date SPI Disclosed

Jun 10, 2004

Country

Dominican Republic

Industry

Tourism, Retail and Property

Projected Board Date

Jul 13, 2004

Status

Completed

Sector

Resort Hotel (Including Lodges)

Department

Regional Industry MAS LAC & EUR

Environmental Category

B - Limited

Previous Events

Approved : Aug 13, 2004
Signed : Oct 6, 2004
Invested : Dec 6, 2004

Project Description

The project consists of establishing a new hotel company or "the Company” using three existing properties fully owned by Occidental in the Dominican Republic (“DR”), refurbishing the facilities of one hotel to re-brand it to a higher standard and upgrading the fire and life safety systems of another hotel. The Company will start operations with 1,316 rooms. The proposed project aims to improve the capital and financial structure of the Company to resume its capital investment program in the DR.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

Development Impact

This is a Category B project according to IFC’s procedure for environmental and social review of projects. Environmental and social issues associated with this project include: sustainability and quality of potable water supplies, wastewater management and treated effluent impact on surface waters, solid waste handling and disposal, fire prevention and emergency response.
Location of environmental documents In locally affected community
Environmental documents related to the project will be placed in OHM’s internet site: http://www.occidental-hoteles.com. In addition, the environmental documents related to the project will be available to the local communities at the three existing properties, as well as in the local libraries or community centers (closest to the existing property) of the towns where the properties are located.

Tourism is largely responsible for strong growth in the DR economy in the 1990s accounting for over 554,000 jobs (16.2% of total employment), $2.8 billion in exports (28.3% of total exports), contributing $5.6 billion in economic activity. The government has identified tourism as a key growth sector and given DR’s competitive advantages, will drive to make tourism more up-market in the future. The proposed project, in line with this strategy, will allow Occidental to re-capitalize three existing hotels on a more sustainable basis and refurbish/upgrade one, and is thus expected to promote further development of tourism in the DR.

IFC has an essential role to play in the project by providing the required long-term project finance, thus ensuring that investors with a proven track record, like Occidental, continue to have access to the international debt and equity markets thus sending a strong positive signal to prospective private investors in the tourism sector in the region.

Contacts

For Inquiries About the Project, Contact

Mr. Adolfo Favieres, Vice Chairman
Occidental Hotels Management, B.V.
Jose Abascal 58
28003 Madrid, Spain
Phone: 34-91-395-9700
Fax: 34-91-441 7107

This Summary of Project Information (SPI) is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC's activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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