AEF Roodepoort Hotel

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name South Africa-AEF Constantia Days Inn HotelRegion Sub-Saharan AfricaSector Hotel and LeisureProject No 008444Projected Board Date June 30, 1998Company Name Constantia Days Inn Hotel(CDIH) Pty LtdTechnical Partner and/or major ShareholdersThe sponsors are Mr Carroth Bosman, Mr Phil Gallesso and DISA (Proprietary) Limited. The latter, who is the franchisor, would be responsible for the management of the hotel.Project Cost Including Proposed IFC InvestmentProject Cost: US$1.3 millionIFC Equity Investment: US$163,000 equivalentIFC Venture Loan: US$326,000 equivalentLocation of Project and Description of SiteThe hotel, which will be alongside a busy highway, is located southwest of Johannesburg, in Roodepoort. The hotel will be located in close proximity to restaurants, a gymnasium and a growing number of office complexes.Description of the Company and Purpose of the ProjectThe project''s activities will be in two yet- to-be-registered companies, a property and operating company. The property company will be 100% owned by Mines Pension Fund. IFC is considering investing in the operating company. The project''s purpose is to establish and operate a limited service hotel that will endeavour to provide high quality service in an industry reputed to lack high standards of service. In addition, the project will ensure broader participation in the hotel industry by people from previously disadvantaged groups (PDGs).Environmental Category and IssuesThis is an environmental review category B project. Environmental and occupational health and safety issues include liquid and solid waste disposal, power and water supply, CFCs, housekeeping and hygiene, general safety training, and fire protection. The sponsors have submitted a plan outlining how each of the issues will be mitigated. Hotel wastewater will be discharged into the municipal system, which is modern and in compliance with ail relevant south African regulations and requirements as well as World Bank guidelines. Solid waste (garbage) will be collected on a weekly basis by the Roodepoort municipality for final disposal. No hazardous wastes will be generated. Drinking water and electrical power will be supplied by the local utility companies. The water quality will be monitored by the requirements established by the National Buildings Regulations of South Africa, which are in accordance with the requirements of the World Health Organization. The hotel will not have back-up generators, however, emergency exit lightingwill be battery operated, which will automatically switch on in the event of power failure. The hotel''s air-conditioning system and refrigeration facilities will use R22 and R404, which are in accordance with the Montreal Protocol. The construction materials to be used will be fire resistant. A fire protection and safety system as required by the local fire department will be implemented. Sprinklers will be installed in public areas, such as the lobby, meeting rooms, and every guest room in the building and will comply with World Bank guidelines. The sponsors have developed an emergency response system and evacuation plan. The sponsors will comply with all World Bank guidelines for health and safety. The Environmental Review Summary is available from the Public Information Center.Date SPI sent to PIC: October 9, 1997"This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed treansaction 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 tel (202)473-7711fax (202)974-4384L:\CAF\AEF\SOU\CONSPI.DOCSeptember 23, 1997 5:49 PMEnvironmental 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).