Universal II

completed

In 2003, in an attempt to replicate the success of the Maldives’ tourism industry, the Seychelles government invited Maldivian hospitality companies, including the sponsors of the UEPL, the Maniku family, to invest in the country (which faces similar geographical and infrastructural limitations). Following a feasibility study conducted by the UEPL, in October 2004, the Seychelles government granted a 60-year lease on part of Silhouette Island. As a result, the 111-room Labriz Silhouette Island Resort (“Labriz Resort”) was developed and commenced operations in late 2006.The total SIRL’s Labriz resort project cost was US $57.5 million, which was financed by loans from UEPL (which took on short-term loans), Mauritius Commercial Bank and by internal accruals. The proposed IFC investment (“Project”) comprises a US $20 million loan to SIRL, to be co-borrowed by UEPL, as the proceeds will be used to strengthen their balance sheets while repaying the expensive overdrafts incurred by UEPL during Labriz Resort’s construction. Silhouette Island is the third largest granitic island of the Seychelles. It lies approximately 20km to the northwest of Mahe with a land area of approximately 20km2 and a maximum altitude of approximately 750m. Silhouette Island is owned by the Island Development Company (IDC), a para-statal entity that develops, controls and manages islands owned by the Seychelles Government. Prior to the construction of the Labriz Resort, the island was home to a leaseholder who managed and operated a 22 room tourist lodge on Silhouette Island called the Silhouette Island Lodge. Silhouette Island is located in a legally protected marine park (IUCN Protected Area Management Category II) (established in 1987), and in the near future 93 percent of the terrestrial portion of the island will soon to be gazetted as a national park. The entirety of the Island, including the resort site, qualifies as critical habitat given that it is located in an internationally recognized area of high biodiversity value, it contains habitat required for the survival of Critically Endangered and Endangered species, it contains areas having special significance for endemic and restricted-range species, and there are key ecosystem services provided. The Labriz Resort has been developed on 11 hectares of previously disturbed land and the facilities/operations include: 111 Guest villas/room; boat mooring facility in the Silhouette mini harbor; 3 restaurants and bar; swimming pool; Spa, fitness centre; offsite dive centre and 2 tennis court; conference, shop and library; resort offices; staff accommodation; chemical storage facility, where all cleaning, pool, and other chemicals are stored; repairs & maintenance workshops; main store room comprising dry goods, cold storage and blast freezers; water storage, pump and desalination facility; effluent treatment plant; 4 x 725 kVA diesel generator sets; diesel storage tanks; solid waste storage area; laundry & housekeeping facility which includes a mini boiler room; and two macro burn incinerators.