|
|  |
| Zara CPLP |
|
| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 28378 |
| Company name | Zara Investment Holding Company Limited |
| Country | Jordan |
| Sector | Accommodation & Tourism Services |
| Environmental category | C |
| Department | Global Manufacturing & Services |
| Status | Pending Disbursement |
|
| Date SPI disclosed | May 14, 2009 |
| Projected board date | June 20, 2009 |
| Previous Events | Signed: September 30, 2009 |
|
| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Zara Investment Holding Company Limited (“Zara” or the “Company”) is one of the largest, domestically owned, tourism companies in Jordan with a 29% share of the country’s 5-star market by room inventory. Zara intends to implement cleaner production initiatives across its various properties that include the installation of energy efficient lights, optimal operation of Heating Ventilation and Air Conditioning and Building Management Systems, installation of solar water heaters for pools and air conditioning chiller control automation system. More detailed break-down is :
- $1.1 million for conducting energy audit and implementing energy efficiency measures at five of its properties;
- $0.8 million for installation of solar panels for pool heating at Movenpick Tala Bay hotel; and,
- $0.3 million for installing computer based software for optimizing operations of water chillers at Movenpick Dead Sea and Aqaba; and,
- $0.2 million for solar panels at Dead Sea for the installation of solar panels to heat the water for the rooms (the “Project”). |
|
| Project sponsor and major shareholders of project company |
| The main sponsors include the Masri and Talhouni families who jointly own above 31% of Zara. Both the families are well regarded and considered amongst the foremost local groups in Jordan. Zara was founded in 1994 and currently owns six 5-star properties across Jordan managed by renowned international management companies like Intercontinental, Hyatt International and the Movenpick Hotels and Resorts as well as another 12 companies in the tourism sector. The company is listed on the Amman stock exchange and the remaining shares are held by various institutions and the public. IFC’s shareholding is 1.34%. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated to be about $2.2 million. IFC has been requested to provide a Loan of up to $1.6 million for IFC’s own account and Zara will contribute the remainder Project cost. |
| Location of project and description of site |
| The energy efficiency measures will be carried out at five of its properties across Jordan (Amman, Petra, Dead Sea and Aqaba). The installation of solar panels for pool heating will be carried out at Movenpick Tala Bay hotel and installation of computer based software for optimizing operations of water chillers will be carried out at Movenpick Dead Sea and Aqaba. |
|
| Anticipated development impact of the project |
| The proposed project will help to reduce Zara’s high energy costs which well exceed hotel industry benchmarks. Zara will pilot the use of solar panels in one of its hotels, which it can replicate in its other properties by taking advantage of Jordan’s potential for solar-based renewable energy options. This is in line with IFC’s stated objective of creating demonstration projects that can showcase successful cleaner production efficiencies for others in the sector. |
 |
| IFC's expected development contribution |
| The project fits with IFC’s strategic Climate Change priority and specific corporate objective of supporting investments in energy efficiency and renewable energy. It supports PS3 which explicitly promotes the adoption of cleaner production practices among IFC’s clients. IFC will play a role in identifying and helping to finance such investments that bring about quantifiable benefits in terms of cost savings and positive environmental impacts. It will promote the concept of “Green Buildings” and provide a case to be shared with other tourism, retail and property development (TRP) sector clients. |
| Environmental and social issues - Category C |
| This project will implement energy and water efficiency measures which were identified by energy and water efficiency audits undertaken by consultants commissioned by Zara. The project includes steam systems enhancements (an economizer, blowdown control and condensate return), solar water heating, lighting upgrades, and a series of heating, ventilation and air conditioning (HVAC) system control upgrades and recommissioning. All these measures are simple and well understood, and they present minimal adverse social or environmental risk. This is therefore an Environmental and Social Category C project. |
|
| For inquiries about the project, contact: |
Mr Ahmad Jamjoum,
Chief Financial Officer
Zara Investment (Holding) Co Ltd
P.O.Box 5315, Amman 1118
Telephone: +962-6-4646781
Fax: +962-6-4646782
Email: Ahmad.Jamjoum@zara.com.jo
Website: www.zaraholding.com
|
|
| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
|
|
|
|
|