The project sponsors are AKFED and TPS Eastern Africa Limited (TPSEA). AKFED has a solid reputation and extensive experience working in tourism in Africa via several subsidiaries, of which the main is TPSEA, a listed company in Nairobi, Kenya that manages a regional portfolio of 15 hotels, resorts and lodges in Kenya and Tanzania. AKFED and TPSEA are long-standing clients of IFC.

The estimated cost of the project is $25.2 million. The proposed up to $8.1 million IFC investment will involve an up to $2.7 million equity injection and an up to $5.4 million A Loan.

8.10 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	5.40
Equity	2.70

* These investment figures are indicative

Situated in central Kigali, Kigali Serena is a 104-room, 5-star hotel located near most of the government, embassy and aid offices. The hotel is situated 10 kilometers from Kigali International Airport. Kivu Serena is a 66-room hotel located along Lake Kivu in Gisenyi, a Rwandan resort town in north western Rwanda, at approximately three hours driving time from Kigali.

The project is expected to: - add to the country’s business and tourism infrastructure by expanding and improving the limited existing base of quality accommodation facilities and business services as well as by providing extensive training to employees and enhancing the overall service standards for the industry; - increase foreign exchange and government revenue in the form of concession fees, income tax and value added tax; - benefit TPS(R)’s employees, who will receive higher than market compensation; - strengthen linkages with local suppliers through continued purchases of produce and other on-going operating supplies, encouraging their growth and development. Spending by international visitors will also help support a wide range of local economic activities, including handicrafts and souvenirs, restaurants, transportation, tours, entertainment, sports and leisure activity, etc.; and - encourage increased tourism and business travel, and as a result, help sustain employment and create additional direct and indirect positions.

IFC’s main role in this project is three-fold: - provide comfort and assist the sponsors to implement their first project in the country; - arrange and provide long-term project financing that is not available in the local financial markets; and - assist the sponsors in identifying and addressing potential areas for improvement in environmental, social, health and safety standards. On the latter, IFC expects to assist the company in: - identifying energy-saving alternatives to reduce consumption of electricity and potable water; - supporting the implementation of HIV/AIDS prevention and care program; - completing a Life & Fire Safety audit; and - obtaining an insurance policy likely to reduce related expense not only in TPS(R) but also in TPSEA.

This is a Category B project, applicable Performance Standards are as follows:

- PS1: Social and Environmental Assessment and Management System- PS2: Labor and Working Conditions- PS3: Pollution Prevention and Abatement - PS4: Community Health, Safety and Security- PS6: Biodiversity Conservation and Sustainable Natural Resource Management

TPS possess detailed corporate environmental management, safety, human resource and social management systems which they intend to implement for their Rwanda operations. There are no known indigenous groups or cultural property in the project. No sponsor activity will occur in the national park, all entry into the Parc National des Volcans (PNV) and gorilla trekking will be done under the supervision of the PNV as per existing guidelines established by PNV and the International Gorilla Conservation Program (IGCP). TPS(R) has committed to ensuring compliance with South African fire safety standards and conducting and independent fire safety audit. The project ESRS will be made available locally in English and French through the offices of ORTPN and TPS.