SEF Settha Palace Hotel

completed

Summary Of Project Information (SPI)Project NameLao PDR-SEF Settha Palace HotelRegionAsiaSectorProject No008258Projected Board DateJune 20, 1997Company NameBelmont Hotel Investments (Laos) Ltd.Technical Partner and/or Major Shareholders The Project Company is 100% owned by Mr. Billy and Mrs. Lucy Theodas. Technical support for the Project will come from the hotel management company, Belmont International Hotels (Hong Kong) Ltd., a regional hotel management company also owned by Mr. and Mrs. Theodas.Project Cost Including proposed IFC investment US$2.80 million including an IFC A Loan of up to US$ 1.4 million.Location of project and Description of site The project is located at 06 Pang Kham Street, Sisaketh Village, Unit 1, Chanthaboury District, Vientiane. The total land area is 7,300 square meter.Description of Company and Purpose of Project The Project is to rebuild and refurbish the former Settha Palace Hotel as a four-star international standard property with 43 rooms in Vientiane, Lao PDR. Belmont Hotel Investments Ltd. (BHIL), the project Sponsor, is an investment company established in 1981 and owned 100% by Mr. Billy Theodas and his wife. The family of Mr. Theodas leased and managed the French colonial period Settha Palace Hotel prior to 1970. In 1994, BHIL signed a 40-year Development Agreement with the Government of Lao PDR, in support of its policy of preserving the architectural heritage of the country, to refurbish and operate the hotel. IFC’s investment in the Settha Palace will demonstrate its commitment towards financing projects that have development impact and benefit to the economy in a difficult and uncertain environment such as Lao PDR. A historic hotel, like the Settha Palace, could bring more tourists and business travelers to Vientiane. The hotel could increase opportunities for foreign investment in Lao PDR by making the city a more reasonable and attractive place for investors to visit and work in. The Settha Palace will have a positive impact on hotel business in Vientiane, where tourist arrivals are increasing but there is a lack of good standard accommodations, as well as on the local economy by creating jobs, providing training that meets international standards, and generating foreign exchange and tax revenue. Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. Environmental issues associated with this project include: liquid effluents, solid waste, CFCs, water supply. Health and safety issues include fire safety and emergency response. Waste water is being treated on site in septic tanks and infiltration systems, and there will be no release of waste water effluents. Fire safety has been reviewed in detail, and acceptable fire protection and life safety measures and designs are incorporated into the project structures, including alarm systems, outside fire escape staircases, and adherence to NFPA fire codes. The project will fully comply with local regulations and relevant World Bank policies and guidelines, and the sponsor will report annually to IFC on its monitoring and compliance.The is from the Public Information Center. Date SPI sent to PIC May 16, 1997For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental 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).