SEF Villa Santi

completed

The project is to expand hotel operations by adding 56 rooms to the existing 25 rooms; in addition a garden and recreation/sports facilities will be added with the overall concept being a garden resort. The project''s concept responds directly to increasing demand for better quality rooms and tourist facilities in Luang Prabang. IFC''s involvement in this project enables long term loan financing for the project, both in terms of the IFC loan as well as a parallel loan from a local bank. The local bank has approved their loan because of the IFC managed Mekong Project Development Facility (MPDF) assistance to the project and IFC''s proposed financing. Without IFC, significant long term funds would not have been available, and thus, the project would not have been able to go forward at this time. The project has been developed with the assistance of MPDF, who has worked with the company for over a year to strengthen the project plan and, in particular, improve the hotel''s management capabilities and increase training of staff.Funds are sought under the IFC''s Extending the Reach Program. With its 100% Lao ownership, the project fits both MPDF''s and the IFC Extending the Reach Program''s shared objective to promote development of local small and medium scale enterprises. The venture is also in line with IFC''s overall strategy to support Lao PDR''s transition to a market economy while helping to meet the country''s need to earn and save foreign exchange. The project will have a demonstration effect for local banks by encouraging them to develop stronger capacities to evaluate risk, and consider other projects, in the Lao PDR tourism sector.The project is in line with the Wold Bank Group long term strategy to reduce poverty, promote infrastructure, and promote human resource development, as well as fitting the World Bank Group strategy to promote macroeconomic stability and further enable the environment for private sector development.