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| Summary of Project Information (SPI) |
| This Summary of Project Information 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. |
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| Project number | 24227 |
| Project name | Universal Maldiv |
| Country | Maldives |
| Sector | Accommodation & Tourism Services |
| Department | Global Manufacturing & Services |
| Company name | Universal Enterprises Pvt. Limited |
| Environmental category | B |
| Date SPI disclosed | March 17, 2005 |
| Projected board date | April 18, 2005 |
| Status | Active |
| Previous Events | Invested: June 2, 2005
Signed: May 23, 2005 |
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| Description of company and purpose of project |
Universal, the largest tourism company in the Maldives, has requested a loan of up to $25 million to finance the following:
- rebuilding of 52 bungalows and a spa at the Full Moon Resort (156 rooms) damaged by the recent tsunami;
- refinancing of the loan for the Huvafenfushi resort (42 rooms) that was completed in 2004; and
- other corporate purposes. |
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| Project sponsor and major shareholders of project company |
| Universal Enterprises was founded in 1972 by two brothers from the Maldives, Mohamed Umar Maniku and Ahmed Umar Maniku. Mr. Mohamed Umar Maniku was one of the hosts for the first organized tour to visit the Maldives. In 1978, the two brothers incorporated Universal Enterprises Pvt. Ltd., a Maldives based tourism company. Universal has since grown and evolved and is now the largest single resort operator in the country with ten quality resorts in eight islands and a total of more than 1000 rooms. |
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| Total project cost and proposed IFC investment |
| The estimated cost of rebuilding, renovation and refinancing is approximately $65 million. The proposed IFC investment is a $25 million A Loan for IFC’s own account. |
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| Location of project and description of site |
| All resorts of Universal are located on individual islands in the Republic of Maldives. |
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| Project Development Impact and IFC's Role |
Development Impact:
The proposed IFC loan will support the largest tourism company in what is likely to be a difficult time for tourism, the key economic sector in the Maldives, accounting for approximately 25,000 out of a total of 88,000 private sector jobs in the country. Specifically, the proposed loan will assist Universal in its efforts to rapidly recover from the devastating effects of the recent tsunami. With the renovation and rebuilding components, the proposed project will provide opportunities to the construction and other sectors that support both tourism and construction industries, especially during a difficult economic time for the Maldives as it faces lower tourist arrivals and a distraught fishing sector.
IFC Role:
IFC’s proposed long-term financing will enable Universal to reconstruct/refurbish its affected operations as well as restructure its existing short to medium-term loans, which will ensure sustainability of its business during the inevitable post-tsunami downturn in the market. IFC will also be providing much-needed insurance advice to Universal. In addition, IFC’s involvement will help in achieving better environmental and social practices in Universal’s operations. |
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| Environmental and social issues - Category B |
This is a category B project according to IFC’s environmental and social review procedure. The project components will be assessed for compliance with applicable IFC social and environmental performance standards. Issues to be considered in this assessment include: protection of cultural heritage and natural habitats; possession of applicable environmental reviews and permits for new and reconstructed facilities; management of potable water, wastewater treatment, solid waste handling and disposal; hazardous materials management; labor relations, occupational health and safety, life and fire safety, and local environmental management for both construction and operations phases of project implementation. Details of each project component will be reviewed and physical appraisal undertaken as required.
To view the environmental documents for this project, click here |
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| Location of environmental documents in locally affected community |
Environmental documentation will be made available at the following locations:
- Universal headquarters:
39, Orchid Magu, Male’ 20-02, Republic of Maldives; and
- Ministry of Environment And Construction:
Huravee Building, Ameer Ahmed Magu, Male’, Republic of Maldives. |
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| To contact the project company, please write to: |
Mr. A.M.M. Risvi, Group Financial Controller
39, Orchid Magu
PO Box 2015
Male’ 20-02
Republic of Maldives |
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