Summary of Proposed Investment
Project Number
9396
Company Name
Marasa Holdings Limited
Date SPI Disclosed
May 19, 1999
Country
Zambia
Industry
Tourism, Retail and Property
Status
Completed
Sector
City and Business Hotel
Department
Regional Industry - MAS Africa
Environmental Category
B - Limited
Previous Events
Approved : Nov 3, 1999
Signed : Nov 3, 2000
Invested : Feb 20, 2001
Project Description
Summary Of Project Information (SPI)
| Project Name | ZAMBIA - Lusaka Inter-Continental |
RegionSub-Saharan Africa
Sector
Project No009396
Projected Board DateJune 19, 1999
Company NameHotel Inter-Continental Lusaka
Technical Partner and/or Major Shareholders
The sponsor is Marasa Holdings Limited, a company of the Madhvani Group which is the largest private company in Uganda, employing over 13,000 people. The Group has interests in a wide range of industries including agriculture, packaging and steel. In the growing services sector of Uganda, the Madhvani Group has a presence in tourism, media & communications, information technology, insurance and trading. Masara Holdings Limited is the Group’s company responsible for its interests in the tourism sector. Masara was the successful bidder in the Government of Zambia''s sale of the Inter-Continental Hotel in Lusaka.
The sponsor has entered into an agreement with the Intercontinental Hotel Corporation (IHC), whereby IHC will continue to manage the hotel, and has requested IFC to support a rehabilitation project.
Project Cost Including proposed IFC investment
Project Cost: $18.3 million (purchase and rehabilitation of the assets); the requested IFC investment: $5.0 million senior loan.
Location of project and Description of site
The project is located on Haile Selassie Avenue, in the diplomatic area of Lusaka. The site includes extensive ground for car parking and possible future commercial use.
The existing building is in a reasonable state but needs selective modernisation and rehabilitation, as well as the replacement of much of the furniture and fittings.
Description of Company and Purpose of Project
Hotel Inter-Continental Lusaka was privatized in March 1998. Previously it was owned by Zambia Hotel Properties, a parastatal 80% owned by the Government.
The project aims to recapture the hotel''s former share of the market for business and leisure travelers. It will preserve the jobs of 275 employees. The partnership of Inter-Continental Hotels Corporation and the Madhvani Group will bring quality staff training and development and should contribute to the development of the tourism sector in the country. IFC will play a key role by providing long term financing, which is scarce in the country.
Environmental Category and Issues
This is a Category B project according to IFC''s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. The key environmental health and safety issues that were analyzed are as follows:
• sewage and liquid effluents;
• solid waste;
• water and power supply;
• CFCs;
• fire protection;
• employee safety training; and
• emergency response.
The is from the InfoShop.
| Host country location of environmental documents | Hotel Inter-Continental Lusaka |
Date SPI sent to InfoShop May 19, 1999
“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
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
Related ESRS/ERS
