Summary of Proposed Investment
Project Number
8649
Company Name
Palestine Tourism Investment Company
Date SPI Disclosed
May 29, 1998
Country
West Bank and Gaza
Industry
Tourism, Retail and Property
Status
Completed
Sector
Resort Hotel (Including Lodges)
Department
Regional Industry MAS MCT
Environmental Category
B - Limited
Previous Events
Approved : Apr 16, 1999
Signed : Apr 22, 1999
Invested : Oct 21, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | West Bank & Gaza - Bethlehem Jacir Palace Hotel |
| Region | Central Asia, Middle East and North Africa |
| Sector |
Projected Board DateJune 30, 1998
Company NamePalestine Tourism Investment Co. Ltd. (PTIC)
Technical Partner and/or Major Shareholders
The proposed hotel will be owned by Palestine Tourism Investment Co. Ltd. (PTIC), a Palestinian holding company. To date, 8.9 million shares valued at JD8.9 million (US$12.5 million equivalent)have been issued, of which 55% have been subscribed by Palestine Development and Investment Ltd. (PADICO), 11% by Zara Investment Co. Ltd., and remaining 34% by smaller investors.
Project Cost Including proposed IFC investment
The total project cost is estimated at about US$42.0 million. IFC''s investment will be US$8.0 million in the form of an A loan.
Location of project and Description of site
The project will be built on a 3 hectare site located 2 km from the center of Bethlehem and 8 km from the Old City of Jerusalem, on the main Jerusalem to Bethlehem road. The Jacir Palace, facing the main road, is a magnificent turn of the century building that will be renovated and incorporated into the design of the hotel. The site includes a large olive orchyard which will help provide an in-city resort atmosphere.
Description of Company and Purpose of Project
The project is to build and operate the first international-standard 250-key hotel in the West Bank city of Bethlehem, which is a world class tourism destination. The project, to be managed by Inter-Continental Hotels (or an international hotel operator of similar quality), would set the standard for quality and comfort, meeting both tourism and business demands.
Despite the political difficulties in the region, since 1991 tourism in Israel and the West Bank and Gaza has been growing at an annual rate of about 2.3% p.a. With further progress in the peace process, this growth will continue. Moreover, the Year 2000 activities are expected to bring a large influx of tourists, in particular to Bethlehem, where there is at present no international standard hotel. The Bethlehem 2000 program, supported with the World Bank financing, will improve Bethlehem’s infrastructure in time for the Year 2000 activities; and the proposed hotel would be the largest private investment associated with this program.
Environmental Category and Issues
This is a Category B project according to IFC''s environmental review procedure. Environmental issues associated with this project include: historical/archaeological structures, liquid effluents, solid waste, water and power supply, and CFCs. Health and safety issues include fire safety and emergency response. The sponsor will install a dedicated sewage treatment plant and will complete an independent fire safety audit of hotel design plans. Water and power will be supplied from the municipal authorities/local grid. No CFC based equipment will be installed. Care has been taken to replant and preserve trees on site and the sponsor is supporting, as agreed with the Palestinian Authority, the construction of a new school to relocate the primary/ secondary public girls school that was located on site. Project design clearance will be obtained by the sponsor from the Ministry of Tourism and Antiquities and appropriate archaeological authoritiesrequirements.
IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating and monitoring reports submitted annually to IFC by PTIC and by conducting periodic supervisions.
The Environment Review Summary is expected to be available from the Public Information Center on June 1, 1998.
| Date SPI sent to Infoshop | May 29, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
P:\PIC\xos08649.doc
May 29, 1998 4:43 PM
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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