Project sponsors and major shareholders have yet to be determined. It is expected that the proposed Facility will enable IFC to support about 4-5 companies.

The project is to establish a tourism loan facility of up to $150 million equivalent that will provide IFC with a flexible platform from which to support promptly and efficiently tourism companies affected by the recent tsunami disaster in South-East Asia. The total project cost is estimated at about $400 million. The proposed IFC investment would be up to $150 million equivalent.

150.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	150.0
Equity

* These investment figures are indicative

Tourism companies affected by the tsunami disaster in South-East Asia, especially the Maldives, Sri Lanka, Thailand and Indonesia.

Developmental Impact The project will help an important economic sector in countries that were affected by the tsunami. Tourism is a sector of comparative advantage and an important generator of economic activity in the Maldives, Sri Lanka and Thailand. The proposed IFC Facility would provide an efficient mechanism to rapidly enable hotel companies to recover from the devastating effects of the worst natural disaster in living memory. It is anticipated that property owners and operators will take advantage of this opportunity to improve the quality of their products and will be encouraged to adopt better environmental practices – especially with respect to energy efficiency, wastewater and solid waste management, and nature conservation. The proposed Facility would help preserve jobs and also create jobs as a result of an immediate reconstruction effort both in the affected hotels/resorts and in the sectors supplying them. Thus, the Facility will promote rapid and sound economic rehabilitation and development in the target countries. IFC Role IFC’s proposed response to the tsunami disaster follows its mandate of working through the private sector, creating a demonstration effect and catalyzing investments to help speed up the recovery of tourism assets in the affected communities. Therefore, the IFC role in the proposed Facility is as follows: - Long-term funding to enable reconstruction and recovery: The proposed Facility will provide tourism companies with long-term finance for reconstruction/refurbishment of damaged property, as well as for restructuring existing loans to ensure that these companies are able to sustain their businesses during the market down-turn following the tsunami; - Catalytic role in support of the tourism sector in affected countries: The size and flexibility of the proposed IFC Facility may encourage commercial banks to support tourism companies through the B loan program or in parallel with IFC. These investments could also catalyze investment from other financial institutions which may currently have limited capacity to invest in the affected areas but would be interested in acquiring IFC loans once the tourism market has stabilized: and - Other assistance: IFC will also explore the possibility of mobilizing other assistance (for example, support to SME suppliers to the affected hotels, under the IFC’s Sri-Lanka-Maldives SME program, or through use of the IFC Matching Grant Program), which will complement the proposed funding to the hotel companies. It is not yet clear whether such services would be needed by the sub-projects.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of each Sub-project financed by the Facility will consist of an appraisal of technical and environmental information requested from the respective sponsor as well as a site visit as required. The following potential environmental, social, health and safety impacts of each Sub-project are likely to be considered: site selection and land acquisition for new facilities, protection of cultural property and natural habitats, environmental reviews and permits for new and reconstructed facilities, potable and wastewater treatment, solid waste handling and disposal, use of CFCs in cooling systems, hazardous materials management, occupational health and safety, life and fire safety, and the environmental management capacity of each Sub-project sponsor.
Location of environmental documents in locally affected community
The environmental and social documentation for any and all Sub-projects financed by the Facility will be made available at appropriate public information outlets, including local administrative offices, libraries and the project facilities themselves, or in some other culturally appropriate venue, 30 days prior to commitment. In accordance with IFC's procedures for the disclosure of information, the location of the environmental and social documentation will be announced in the local English-language and vernacular press, or through other culturally appropriate means as required.