The project sponsor is Boundary Hill Lodge Ltd. (BHL), a joint venture between the Lolkisale Village Council (LVC) (50%) and the Tarangire Conservation Company Ltd. (TCCL) (50%). The LVC is the representative of the Lolkilsale village community with a population of about 4,000 people from the Maasai tribe. The community owns 600,000 acres of land bordering the Tarangire National Park. The community is contributing 100 acres to BHL and will lease to BHL another 35,000 acres to be developed into a private game reserve.

TCCL is wholly owned by East African Safari and Touring Company Ltd. (EASTCO), a family-run business in Arusha that runs mobile camping safaris and hires safari vehicles to Lets Go Travel Tanzania Ltd., a local tour operator. Mr. Simon King is the major shareholder (54%) of EASTCO and the main sponsor of the project. Other family members own the balance of the shares. Juliana King, wife of brother Hartley King, an indigenous Tanzanian owns 35%. Selby King, a doctor and brother in Australia has 10%, is a passive shareholder.

The total project cost is estimated at US$ 800,000. The proposed IFC investment is a US$ 200,000 A loan for IFC''s own account.

0.20 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	0.20
Equity

* These investment figures are indicative

The site for the proposed lodge is on the eastern boundary of Tarangire National Park on Boundary Hill, a small basalt outcrop overlooking the park. The site covers 100 acres and was contributed by the LVC as their equity. The site has its own title deed, which is in the name of BHL. The site is 140 km from Arusha, a two and half-hour drive.

This is a Category A project according to IFC’s Procedure for Environmental and Social Review of Projects, because it may result in significant adverse environmental and/or social impacts that are sensitive, diverse or unprecedented. Key environmental issues associated with the project include: impacts on a critical Natural Habitats, (primarily animal migration corridors and grazing areas); creation of a 60,000 acre Wildlife Conservation Area; site selection criteria; increased traffic in the Tarangire National Park; staff accommodation and infrastructure; liquid and solid waste disposal; construction materials supply and waste disposal; power and water supply; safety issues associated with the presence of wildlife; CFC-free cold storage; and employee training, emergency response preparedness, and fire protection.

Social issues related to the project are potential direct and indirect social impacts on the local Maasai community in Lolkisale Village. These issues relate to impacts on communal property (e.g., the nature of land acquisition/lease process between the sponsor and the Maasai community); extent of public consultation; management and allocation of lease payments and royalties; and design of a community development program and foundation/trust.

An independent Environmental and Social Impact Assessment (EIA) has been completed. As part of project appraisal CTESR conducted a site visit of the project, held meetings with NGOs based in Nairobi and Dar es Salam (WWF and AWF), USAID PORI project team members, the Government, members of the local community, and the sponsor.

The Environmental Action Plan (EAP), entitled Mitigation Measures and Environmental Monitoring, will be finalized with the sponsor and EIA consultants and attached to the project Investment Agreement.
Location of environmental documents In locally affected community
The ERS has been disclosed locally at the following locations in Arusha: the Municipal Office, the Community Research Development Services (CORDS); the Tanzania National Parks Authority (TANAPA); and the Partnership Option for Resource Use Innovations (PORI)