AEF Leopard Rock Lodges

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name Kenya - Leopard Rock Lodge Region Sub-Saharan AfricaSector TourismProject No 009617Projected Board June 30, 1999Company Name Meru Park Adventure LtdTechnical Partners and/or Major ShareholdersThis is a joint venture between Simon M. Ethangatta, Kenyan, with 51% of the shares and Rolf Gloor, Swiss, with 49%. Mr. Ethangatta is an experienced businessman involved in several business activities. Mr. Gloor has been involved in the tourism industry as tour leader/guide for over 20 years.Project Cost including Proposed IFC Investment Project Cost US$1.27 million IFC Loan Investment US$0.50 millionLocation of Project and Description of Site Leopard Rock Lodge is located in the southeastern corner of Meru National Park. It is being built along the Murera river next to a river-forest and a prominent rock formation. The site is generally flat with a gentle slope to the river. Description of Company and Purpose of Project The project company, Meru Park Adventure Ltd, was incorporated in 1997 for the purpose of implementing the project. The project is to rebuild the Leopard Rock Lodge in Meru National Park with a 60 bed quality lodge targeted at the medium to upper end of the market. This will involve construction of 15 double room cottages and other support facilities such as a dinning hall and kitchen, reception and a swimming pool. IFC RoleIFC is to provide a long-term foreign currency financing and technical assistance. Development Impact The project has strong developmental impact as it will: a) attract more tourists to the park thus earning the country about US$1 million in foreign currency. b) create employment for about 50 people; and c) provide a market for agricultural produce in the area. Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. The review of the project consisted of appraising technical and environmental information submitted by the project sponsor and Kenya Wildlife Service (KWS). Key issues associated with this project include: KWS regulations; Meru National Park (MNP) management; site selection; land lease arrangements; impacts on wildlife and the Murera River; local communities; public consultation; water and power supply; solid waste disposal; liquid waste disposal; staff and guest safety; and fire protection. While this is a category B project, due to the project’s location in a National Park, IFC required completion of an independent focussed EIA. This EIA was completed by the African Biodiversity Institute, Nairobi, Kenya, and included public consultation with key stakeholders (including local communities, Nyambene County Council (NCC), KWS authorities, MNP Warden, and NGOs) and compilation of an Environmental Action Plan (EAP). A concise summary of the key EIA, Public Consultation, and EAP issues is provided in the ERS dated May 20, 1999, which is available in the Info Shop, as well as locally with KWS and the NCC. The sponsor has committed to implement all recommendations made in the EIA and the EAP. Given that MNP has experienced a decline in recent years and has suffered poaching and diminishing tourism services, it is anticipated that this project will result in significant environmental benefits, enhancing KWS’s ability to manage MNP through construction of a Ranger Station, and bring benefits to local communities through social projects funded by revenue earned by the NCC, who own the project site. The ERS is expected to go to the PIC by May 28, 1999.Date SPI sent to PIC: May 25, 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". 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).