Zara Investment (Holding) Company Limited

completed

Summary Of Project Information (SPI)Project NameJordan-Zara Investment (Holding) CompanyAmman Grand Hyatt and Dead Sea Mövenpick ProjectsRegionMiddle EastSectorProject No007205Projected Board DateJune 20, 1995Company NameZara Investment (Holding) Company (Zara)Technical Partner and/or Major Shareholders Zara, a Jordanian Holding company, would own 81% and 90% of the Amman and Dead Sea projects respectively while IFC would own about 4.2% of Zara. Project Cost Including proposed IFC investment Total combined cost of the two projects is US$102.1 million (including an IFC A loan of US$15 million to Zara and an equity investment of about US$3 million in Zara’s capital).Location of project and Description of site Located in the business district of Amman, Jordan’s capital, the Grand Hyatt project will comprise two modern buildings of 10 and 16 stories respectively occupying a site of 12,190 square meters. The Dead Sea project will be built in the form of a touristic village on a 70,000 square meters plot of land, on the North Eastern shore of the Dead Sea in Jordan. The site which is leased from the Government, is strategically located at about 50-minutes drive from Amman and Jerusalem. Description of Company and Purpose of Project The proposed investment program consists in the construction and operation of (1) an international standard 312-room hotel and complex comprising 44 apartments, partially serviced by the hotel, well-equipped exhibition/ conference facilities, an auditorium, a health club and a large car parking structure. The proposed hotel will be managed by Hyatt International; and (2) a wellness center and 231-room hotel complex on the Dead Sea, combining medical and recreational facilities, to be managed by Mövenpick. Expansion of quality tourism facilities is needed in Jordan to accommodate current activity in the sector and future growth. Economic benefits accruing to Jordan include foreign exchange generation and the creation of about 600 direct jobs. IFC’s main role in this project is to provide long term funding on terms and maturities not available in Jordan, and help Zara mobilize local loans. Also IFC provided valuable advice to the sponsor on the terms of the lease for the Dead Sea site and on the hotel Management contracts. Finally, IFC will ensure that the two projects meet the World Bank environmental guidelines. This is particularly critical for the Dead Sea if it is to establish itself as a well-preserved destination on the Jordanian touristic map.Environmental Category and Issues This is an environmental review category B project; principal issues are liquid and solid waste disposal, water supply, recovery of dry cleaning solvents, use of refrigerants, socio-economics and fire, safety and emergency response. The sponsor has presented plans to address these issues and to comply with applicable governmental and World Bank requirements. Key actions include measures for waste water treatment, optimization of solvent recovery, use of sprinkler systems and smoke and heat detectors, employee training including emergency response preparedness.The is from the Public Information Center. Date SPI sent to PIC May 9, 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).