AEF Erand Hotel

completed

SUMMARY OF PROJECT INFORMATIONProject Name South Africa-Midrand Days InnRegion Sub-Saharan AfricaSector Hotel and LeisureProject Number 007936Projected Board Date January 31, 1997Company Name Not yet registeredTechnical Partner and/or Major Shareholders:  The project is 33.33% owned by Mr Carroth Bosman, Mrs. Sizakele Shongwe, Mrs. Motshidi Skosana and Mr. Jayprakash Vallabh Patidar.  IFC and another local financial institution may hold the balance of 66.67%.  Mr. Carroth Bosman will be the General Manager of the project.  Days Inn Southern Africa (Pty) Ltd will be the operator.Project Cost including proposed IFC investment:  Project Cost: US$ 3.8 million equivalentIFC Equity Investment: US$ 0.5 million equivalentIFC Venture Loan: US$ 1.0 million equivalentLocation of Project and Description of Site:  The project will be located in Midrand, a commercial and residential area north of Johannesburg.  The site is ideally located on an incline alongside the N1 Highway and opposite BMW’s head office.Decsription of the Company and Purpose of the Project: The project is the establishment of a 104 room Days Inn hotel in Midrand. Developments in Midrand have made it Africa’s fastest growing area. Days Inn is an ideal hotel being established to take advantage of the expected buoyant market for hotel rooms in the area.Expected Development Impact: In addition to the provision of scarce equity capital, the project will create approximately 30 jobs and will ensure a broader participation in hotel projects by people from previously disadvantaged groups.Environmental Category and Issues: The project is a category B project under IFC’s environmental review procedure.  Environmental, health and safety issues include sewage treatment, liquid and solid waste disposal, fire safety measures, employee training, general safety and noise pollution.  The sponsor is willing and able to install the necessary controls to minimise the impact on the environment.  The Environmental Review Summary is available at the Public Information Center.Date SPI sent to PIC:   December 12, 1996For additional information contact:  Corporate Relations Unit          Telephone Number: (202) 473-7711          Facsimile  Number: (202) 676-0365 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).