Orascom Touristic Establishments

completed

Summary Of Project Information (SPI)Project NameEgypt-Orascom Touristic Enterprises     RegionCentral Asia, Middle East and North AfricaSectorProject No007790Projected Board DateJanuary 15, 1997Company NameOrascom Projects and Touristic DevelopmentTechnical Partner and/or Major Shareholders This expansion project will be carried out partly by Orascom Projects and Touristic Development (OPTD, an Egyptian company) and partly by other investors. OPTD’s major shareholders are the Sawiris family (a well known business family in Egypt) (79%), Commercial International Investment Company (an affiliate of Commercial International Bank) (10%) and Al-Ahli for Development and Investment (11%).Project Cost Including proposed IFC investment The total project cost over the 1997-99 period is estimated at about US$100 million of which IFC’s investment will amount to about US$25 million, including an A loan of US$20 million and US$5 million in equity.Location of project and Description of site The project is located in El Gouna about 21 km north of Hurghada. The site is located in a desert area on the Red Sea coast. Description of Company and Purpose of Project This project involves expanding a fully integrated tourism development located in El Gouna, 21 kilometers north of Hurghada on the Red Sea Coast. OPTD is a company established under Egyptian Law 230 for the purpose of developing tourism projects. Other than the El Gouna project, the company owns shareholdings in Taba Heights Company which is developing a tourism project in Taba on the Gulf of Aqaba and in Egyptian Company for Touristic resorts which will develop a tourism project in Sahl Hashish on the Red Sea coast. The project under consideration by IFC will consist of the expansion of a planned fully integrated tourism development in El Gouna (including hotels, town center, residential and commercial facilities, golf course, marina and other facilities). IFC will play a major developmental role by providing long-term financing to a pioneer of large-scale integrated tourism developments in Egypt. Environmental Category and Issues This is an environmental review category B project. A site visit has been undertaken by the environment division and a fire and safety audit has just been completed. Principal issues are modification of land use, marine impacts, liquid effluent, solid waste management and disposal, fire prevention and life safety. The sponsor has addressed these issues for the existing development, has proposed plans to address these issues for the new developments and has agreed to comply with applicable governmental and World Bank guidelines and policies.The is from the Public Information Center. Date SPI sent to PIC December 11, 1996For Additional Information contact: Corporate Relations Unit -telephone: (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).