28566 - Hotel Erbil 2009

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Summary of Proposed Investment

Project Number

28566

Company Name

MALIA INVEST HOLDING SAL

Date SPI Disclosed

Oct 26, 2009

Country

Iraq

Industry

Tourism, Retail and Property

Projected Board Date

Nov 30, 2009

Status

Completed

Sector

City and Business Hotel

Department

Regional Industry MAS MCT

Environmental Category

B - Limited

Previous Events

Approved : Dec 11, 2009
Signed : Dec 14, 2009
Invested : Dec 29, 2009

Project Description

Malia Holding s.a.l (the “Sponsor” or “Malia”) a Lebanese conglomerate, has invited IFC to consider financing the development of a green-field hotel in the city of Erbil in northern Iraq (Kurdistan region). Hotel Erbil is a five star business hotel, with 201 rooms, 4 restaurants and supporting services for a total estimated project cost of $40.5 million (the “Project”). Hotel Line for Touristic Investments (the “Company”) is implemented on a 20,000 m2 parcel of land, purchased by the Sponsor through the Board of Investment of the Kurdistan region. The hotel will be operated by the Rotana Hotels Management Corporation (“Rotana” or the “Operator”), a well-known regional hotel management company based in the U.A.E.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	14.0
Equity

Development Impact

The Project will foster the development of business infrastructure in Erbil through (i) providing much needed business infrastructure to the employees of development institutions, diplomats, government workers, NGOs, investors, as well as many private companies that are involved in rebuilding Iraq that frequently use Erbil as their home base during their stay and work in other parts of Iraq; (ii) benefiting the municipal city planning by providing infrastructure for business development such as conference rooms and business centers; (iii) creating outsourcing opportunities, (iv) creating more than 300 direct jobs and indirect employment; and (v) extensive hotel training that will be provided by Rotana prior to and during operations, which is expected to enhance the overall service quality standards for the hotel industry in the region

IFC will play catalytic role in facilitating further private investment into a conflict affected country. IFC’s involvement will have a strong demonstration effect by supporting the private sector foreign investments in the country, with all of the related challenges, and laying critical groundwork for future private investments in hotels and other sectors. Moreover, IFC will provide (i) political coverage, (ii) global sector knowledge and expertise, (iii) appropriate financing conditions for the proposed investment and (iv) guidance to the Company to implement environmental and social best practices.

The key social and environmental issues associated with the project include: management of Environmental, Social, Health and Safety (ESHS) during construction and operation; working conditions during construction and operation; optimization of resource inputs including water, energy efficiency and waste minimization practices; impacts of construction and operations on communities; and life and fire safety of hotel during operations. The potential adverse effects of the project are limited, site specific and reversible and can be readily mitigated. It is therefore concluded that this is an Environmental Category B project according to IFC’s Environmental and Social Review Procedure.

Please refer to the ESRS for the further information.

Contacts

For Inquiries About the Project, Contact

Mr. Chakib Chehab, General Manager
Tel: +961 1 881212
Fax : +961 1 881313
Email: chakibchehab@maliagroup.com

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

Local Access of Project Documentation

Translated versions of the ESRS and ESAP will be made available at the following locations:

In Lebanon:

Malia Holding sal
Zone Amaret Chalhoub,
Sarraf Bldg, Jdeidet-el-Metn,
Lebanon

In Iraq:

Malia Holding
Address: Gulan Street – Rotana Erbil Hotel site
Contact person: Mr. Ibrahim Fayad
Malia CTI Ltd.
Tel: +964750 4546719
Email:ibrahimfayad@maliaholding.com

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. 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 Policy on Disclosure of Information that went into effect April 30, 2006.

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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