The Teylium International Group (the sponsor or Teylium) is a diversified, Mauritius registered holding company with operating companies throughout French West Africa. The Group has interests in Telecommunications, Properties, Aircraft, Industry and Financial Services. The Group is one of the leading property developers in the region and currently has a portfolio more than 10 investment properties across Senegal, Cote d’Ivoire and Mali.

The total project cost is estimated at EUR 32 million. The proposed IFC investment is a EUR 10 million A Loan for IFC’s own account backed by a corporate guarantee. The balance of the financing will be provided by equity from the Sponsor and loans from local banks.

13.63 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	13.63
Equity

* These investment figures are indicative

The project is located on sea front property on the Corniche of Dakar in the Fann neighborhood. The site has convenient access to central Dakar and major transportation routes.

The project will have several positive development impacts. - Improved Business Environment: The project will add to the number of high quality accommodations in Dakar by supporting the construction of a 180 room hotel operated by Radisson, thereby encouraging increased business, tourism and retail activities in the country. It is also expected to improve the appearance of the city and its competitiveness as a domestic and regional commercial hub. - Enhancing Local Supply Chain: The project will generate both downstream and upstream local supply linkages, contributing to the development of Senegal. - Employment Generation: The project will create new employment, both directly and indirectly. It will provide additional direct employment with a multiplier effect along the supply chain. In addition, temporary employment will be provided to local labor during the construction phase. - Improved Life and Fire Safety Performance: Adherence to IFC life and fire safety policies will improve the Group’s practices and hence improve safety for users; this is also expected to set a best practice for other developments to follow.

The IFC has three important roles to play in this transaction: - Long-term financing: The proposed maturity of the IFC Loan is expected to be 10 years vs. shorter loan maturities provided in the local market. - IFC’s global business and sector knowledge: IFC will be able to provide the client with important advice on the development of their first hotel. - Improvement in the Group’s EHS standards: Through compliance with WB/IFC performance standards, the Project will set the standard for environmental and sustainable hotel development in Dakar.

While all Performance Standards (PS) are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security
- PS5: Land acquisition and Involuntary Resettlement

According to the EIA, the site lacks substantial natural vegetation and has no cultural heritage sites. PS 6 Natural Habitats and PS8 Cultural Heritage do not apply. There are no people who would be considered as Indigenous Peoples under PS7 Indigenous Peoples living near the project site.

The key social and environmental issues for this project are:

- Environmental assessment,
- Wastewater treatment, and
- Fire and life safety.

The project itself will have a limited impact on the surrounding urban environment. The EIA has addressed the significant environmental aspects of the projected and recommendations have been incorporated into the design of the project. The additional measures requested following the IFC review will use known and accepted technologies and procedures to avoid or mitigate social and environmental impacts. Thus, this project is a category B under IFC’s Environmental and Social Review Procedures.