AEF Zanzibar Safari Club

completed

SUMMARY OF PROJECT INFORMATIONProject Name Tanzania – Zanzibar Safari ClubRegion Sub Saharan AfricaSector TourismProject No 010074Projected Board Date March 30, 2000Company Name Zanzibar Safari Club LimitedTechnical Partner and/or Major ShareholdersMr. Khamis Khamis, an indigenous Zanzibari, owns the Zanzibar Safari Club Limited, a hotel. His other interests are a small coconut oil refinery and a trading company. Project Cost Including proposed IFC investment The total project cost is estimated at US$2.4 million. The proposed IFC investment is a loan or US$700,000.Location of project and Description of SiteThe hotel is located at a 5 ha beach plot on Uroa Beach on the east coast of Zanzibar. The site has a 200 meter beachfront covered with tropical palm trees and slopes down to a white sandy beach and clear blue Indian Ocean. Description of Company and Purpose of ProjectThe hotel, Zanzibar Safari Club Limited, was built in 1997/98 and commenced operation in October 1998. The first phase was built with the sponsor’s own funds and was not completed to an international standard. The project is to complete the hotel and to expand the hotel by a further 8 rooms. Kitchen, laundry, water treatment equipment and room furnishings have to be purchased. Cold rooms, stores, and staff houses have to be built. IFC’s role is to provide long term financing in a country where it is scarce, and as this is the sponsor’s first hotel project, IFC’s consultant has provided considerable input to the sponsor to the requirements necessary to upgrade the hotel to a standard that is acceptable to European tour operator. The project is developmentally positive as it: serves as a demonstration model to other Zanzibaris as the hotel is one of the very few beach hotels owned by an indigenous Zanzibar; introduces more competition; creates 100 operational jobs with the attendant training, improvement in environmental, health and safety standards; and will generate valuable foreign exchange for the economy.Environmental Category and Issues This is a category B project according to IFC''s Environmental and Social Review Procedure. Key issues associated with this project include: land acquisition; coastal impacts; sewage treatment; solid waste disposal; water and power supply; fuel storage; landscaping and erosion control; and general safety and training. The Environmental Review Summary is expected to be available from February 24, 2000 the World Bank InfoShop.Host Country Location of Environmental Documents: Uroa Village Chief’s office.Date SPI sent to PIC: February 18, 2000“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) 974-4384 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).