Capital Alliance Property Investment Company (“CAPIC”) – CAPIC is $165 million real estate private equity Fund sponsored by African Capital Alliance (“ACA”). ACA is an independent firm formed in 1997 to promote private sector invests in Africa. ACA is headquartered in Lagos, Nigeria and is an existing IFC client. CAPIC holds a 49% equity stake in the Project.

The Mohinani Group of Companies (“MG”). MG was established in 1966 in Ghana. It is a private diversified family owned group with interests in packaging product manufacturing, distribution of electronics, property, chemicals trading and recently, quick service restaurants. MG has over 3,000 staff globally, with operations in Ghana, Nigeria and Hong Kong. It also has a presence in East Africa, South Africa and India. In 2010 it achieved a global turnover of $347 million, and held assets of $198 million. The group has won many local and international awards for CSR, quality and market leadership. The group holds a 51% equity stake in the Project.

The total project cost is $21.8 million The proposed IFC investment is an A Loan of $5.45 million for IFC’s own account.

5.45 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	5.45
Equity

* These investment figures are indicative

The Project is located in Takoradi, Ghana. The Project site is on a 8,134 sqm site in a low density residential area in central Takoradi with good road access to the airport, beach and other attractions. Approval has been obtained from the relevant authorities to demolish part of the existing buildings on the site.

(i) Absorb the unmet demand for quality hotel of international standards in a major business district of Takoradi.
(ii) Standards: Improve hotel standards in the 3 star segment.
(iii) Skill transfer: Encourage the transfer of skills and expertise in hotel management to the local workforce.
(iv) South-South Investment: support a South/South investment in CAF region.
(v) Employment: Direct and indirect employment for locals during construction and operations.
(vi) Revenues: Government revenue source through tax collection.
(vii) Local supplies: local procurement of construction supplies, food and services throughout construction and operations.

(i) Provision of necessary long-term financing with suitable grace, currently unavailable in the market.
(ii) Ensures adherence to IFC''s best practice Environmental, Health, Safety and Social standards.
(iii) Incorporation of energy efficiency and renewable energy elements in the Project design and scope.
(iv) Supports and serves as trusted partner for CAPIC''s regional expansion.
(v) IFC will serve as an honest broker to the two Sponsors.
(vi) IFC''s involvement will attract institutional investors and local debt to the Project.

The environmental and social impacts of the Sponsor’s operations are relatively limited. IFC’s review did not identify any significant adverse impacts or high risk exposures. Issues to address include those associated with construction of the hotel (specifically that of waste management, maintaining the health and safety of construction workers and avoiding impacts upon the local community) and those experienced during operations (energy and water usage and waste management and provision of appropriate rights to hotel employees).

This is a Category B project according to IFC’s Environmental and Social Review Procedure because of the limited number of adverse impacts that may occur which are generally site specific and can be avoided or mitigated by adhering to generally recognized performance standards, procedures, guidelines or design criteria.

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

- PS 1: Social and Environmental Assessment and Management Systems
- PS 2: Labor and Working Conditions
- PS 3: Pollution Prevention and Abatement
- PS 4: Community Health, Safety and Security