AEF WIP Motors (Pty) Limited

completed

SUMMARY OF PROJECT INFORMATIONProject Name South Africa, WIP MotorsRegion Sub-Saharan AfricaSector AutomobilesProject No 007046Company Name WIP Motor HoldingsLocation of projectand Description of Site The project will be located at 22 Anderson Street, Central Johannesburg, South Africa.Projected Board Date June 16, 1995Description of Company and Purpose of ProjectThe project is to operate a BMW franchise dealership which will engage in the selling of new and used BMW cars, and sale of parts and service to these cars. BMW cars are locally manufactured in South Africa. WIP Motors would be a successor to JSN Motors, a BMW dealer franchise, who has relocated to larger premises at a suburban site in Sandgate. BMW (SA) has undertaken to make a positive contribution to the economic empowerment of previously disadvantaged business investors by awarding the existing dealership to Women Investment Portfolio (Pty) Limited, a consortium of black women investors. To ensure a successful and profitable business, WIP has formed a joint venture with Imperial Holdings Limited (IHL), a successful motor company with diversified operations, to operate WIP Motors. WIP has formed a company, WIP Motor Holdings, to represent their interest and act as the holding company for WIP Motors.Technical Partner and/or Major Shareholders The joint venture partners, WIP and IHL, are the major shareholders. WIP was incorporated in September 1994 and represents the investment interests of a consortium of approximately 30,000 women from previously disadvantaged communities. WIP''s primary goals are wealth creation for its members through strategic investment opportunities, which typically target a variety of professional women groups including the YWCA and Young Professional Women. IHL is a diversified industrial holding company conducting business in four decentralized divisions: Car rental, leasing and tourism; Motors; Transport; and Insurance, finance and property. IHL has many years of experience in the motor industry with Toyota, Nissan, Mercedes and BMW dealerships nation-wide. Their car rental subsidiary runs a fleet of 200 BMW cars. They, therefore, have an existing relationship with BMW (SA). IHL will play a major role as a technical partner in the operations of the dealership until such time that the WIP members have acquired the relevant skills and experience.Project Cost and Proposed IFC Investment Project Cost: US$2.8 million IFC Investment: Loan - US$0.5 million Equity - US$83,000Environmental Category and Issues This is an environmental review category "B" project. Potential environmental health and safety issues associated with this project include; disposal and recycling of all motor fluids and oils, fuel storage, fire protection, and general safety issues. The sponsor is committed to providing IFC with a plan addressing the issues identified above. The Environmental Review Summary is expect to be available on June 15, 1995 at the Public Information Center.Date SPI sent to PIC May 31, 1995 For additional Information contact: Corporate Relations UnitTelephone (202) 473-7711Facsimile (202) 676-0365Environmental 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).