AEF Best Western Pandu Ondangwa Hotel

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name Namibia – Pandu Ondangwa HotelRegion Sub-Saharan AfricaSector Hotels & TourismProject Number 009118Project Board Date August 31, 1998Company Name Pandu Ondangwa Hotel (Pty) LtdTechnical Partner and/or Major Shareholders:The project sponsor is Pandu Ondangwa Properties Limited, a property investment company owned 80% by Pandu Holdings Limited and 20% by Mr. Haddis Tilahun, a local businessman and Managing Director of Pandu Properties. Pandu Holdings is a joint venture between Dr. Leake Hangala, a prominent Namibian businessman and Mr. Petrus Kauluma, a retired government employee and chief of the Ndonga tribe.Project Cost including Proposed IFC Investment:Project cost has been estimated at approximately US$4.50 million. IFC has been requested to provide quasi-equity and loan financing totaling US$1.25 million.Location of Project and Description of Site:The hotel will be located in Ondangwa, Oshana Region, 670km north of Windhoek Ondangwa. The project site is situated at the junction of the B1 (Namibia’s main North-South highway connecting northward to Oshikango and south to Windhoek) and the C46 connecting to Oshakati. Description of Company and Purpose of Project:The project involves the establishment of a 90 room Cresta Lodge in the town of Ondangwa, an emerging business center in Northern Namibia. The 3-star hotel will be managed by Cresta Hospitality, an experienced hotel management company operating 18 other hotels in Southern Africa. The business concept of the project appears sound, given a significant shortage of quality accommodation and strong projected growth in the region. Project Development Impact:The Pandu Ondangwa Hotel is expected to create 80 jobs for the indigenous population in the Ondangwa area. In addition, a USAID sponsored project has identified and trained local and indigenous entrepreneurs who will be linked into the supply chain of the hotel for services such as laundry, dry cleaning, airport shuttle, and car parking. The construction of a quality hotel and conference facility will be a needed addition to the business infrastructure of the region and should serve as an important anchor project for attracting additional investors.Environmental Categories and IssuesThis 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. Environmental health and safety issues include site history and past contamination; source of water and power supply including fuel storage if applicable; disposal of liquid and solid wastes including sewage; air emissions from boilers and laundries; CFC-free cold storage and air conditioning; employee hygiene and health and safety training; and fire protection and emergency response. IFC reviewed information provided by the project sponsor regarding environmental management and occupational health and safety issues associated with the proposed project, as well as proposed mitigation measures. The sponsors have agreed to comply with World Bank guidelines regarding fire protection and life safety, and to implement a fire and emergency response plan for the hotel. A desk review of the detailed hotel design will be conducted by a fire safety expert prior to disbursement of IFC funds to ensure that the facility conforms to World Bank guidelines. Details of IFC’s environmental review including mitigation measures can be obtained from the Environmental Review Summary (ERS) which is expected to be available on or about August 3, 1998 from the Infoshop.Host country location of environmental documents:“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) 473-7711facsimile: (202) 974-4384Environmental 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).