The project sponsors and major shareholders of PINE are Mr. Charles Lubega, Mr. William Byaruhanga and Mr. Henry Lubwama who are prominent Ugandan entrepreneurs with investments in the property sector and other businesses.

The sompany was incorporated in September 2006 with the objective of promoting investments in commercial properties in Uganda. PINE’s first transaction was in 2007 when the company purchased Rwenzori House an office building originally owned by Nakasero Properties Ltd. a subsidiary of DFCU - Bank (a commercial bank in Uganda). IFC had been an equity and debt investor in the construction of Rwenzori House in 1994. PINE has also acquired other land plots worth over $2.83 million for future developments.

Total project cost is estimated at $18 million including $12 million (67%) for construction costs, $2 million
(11%) for land acquisition and $1.3 (7%) for contingencies.

The proposed IFC investment will consist of an A loan of up to $3.5 million and a C loan of up to $2.5 million on IFC’s account.

5.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	5.0
Equity

* These investment figures are indicative

The project will be strategically located on a 0.75 acres plot of land , as an expansion to the adjacent buildings; Rwenzori Courts on Nakasero Road to the East and Rwenzori House on Lumumba Avenue to the South. These two large high-quality office properties are owned by the Sponsors and have excellent proximity to banks, hotels, and government offices.

The project will contribute to filling the gap between supply and demand for quality office space in Kampala and provide much needed property infrastructure in Kampala.

Other areas of development impact include:

- Improvement in and introduction of quality standards;
- Creation of direct and indirect jobs;
- Demonstration effect on other local companies to pursue similar commercial property development projects;
- Opportunity for linkages and benefit to other sectors of the economy, from suppliers to final tenants who will benefit from additional quality office space.

IFC will be supporting PINE in its growth strategy by providing long-term finance which is not readily available and helping the Company build an office property of international standards in order to attract and retain top quality tenants. IFC office property sector expertise will benefit PINE in the design and planning phase of the Project as IFC will be able to share information on industry best practice in the environmental and technical area of the Project. IFC will also provide valuable financing structure advice to improve the intended leverage and commercial prospects of the Project.

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 and social impacts that may result will be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The Project is a standard commercial building development within Kampala’s CBD with the intention of improving the supply of office and retail space within a desired location. The review of this project consisted of document review, including the mandatory Environmental Impact Assessment and conceptual designs, meetings with the National Environmental Management Authority, the Project team (Project Manager, engineers and architects), the property administrators responsible for managing building and a site visit. IFC’s review identified a number of potential issues associated with the Project and those related to the construction phase include:

- Disruption to occupants in adjacent buildings (i.e. noise and dust) and increased security risks;
- Traffic congestion;
- Contamination of stormwater; and
- Occupation and health and safety of construction workers.

Assuming effective implementation of the Environmental Management Plan for this phase of the project, the potential impacts associated with these issues will be minimized.

During the operational phase there is a need to ensure adequate access to services including solid waste, sewerage and stormwater disposal and measures have been identified to address these issues. In addition, the building will be constructed in accordance with modern Fire, Life and Safety standards and will be audited to ensure compliance.