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Summary of Project Information (SPI) |
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| Project number | 8674 |
| Project name | Idarat Investment Corporation, S.A.L (Holding) Multi-company w/9197 |
| Country | Lebanon |
| Sector | Accommodation & Tourism Services |
| Department | Global Manufacturing & Services |
| Company name | Idarat Investment Corporation, S.A.L. |
| Environmental category | B |
| Date disclosed | March 31, 1998 |
| Status | Completed |
| Previous Events | Invested: September 28, 1999
Signed: October 20, 1998
Approved: June 30, 1998 |
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Summary Of Project Information (SPI)
| Project Name | Lebanon - Idarat |
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| Region | Centra Asia, Middle East and North Africa |
| Sector | |
Project No008674
Projected Board DateMay 15, 1998
Company NameIdarat Investment Corporation (Idarat)
Technical Partner and/or Major Shareholders
The project is sponsored by Mr. Béchara Nammour, the largest and majority shareholder in Idarat, at 51% of capital. Mr. Nammour is a highly experienced businessman in the hospitality industry with a number of successful hotels and restaurants in Lebanon, the U.S. and France.
Project Cost Including proposed IFC investment
Total project cost is estimated at US$40 million. IFC's proposed investment consists of a US$13 million loan and a US$1.5 million equity investment.
Location of project and Description of site
The project consists of the construction of 3 hotels and 4 restaurants in Beirut.
Description of Company and Purpose of Project
Idarat is a diversified company involved in the tourism sector in Lebanon, holding interests in a number of hotels and restaurants in the country. Since its creation in the early 1990’s, Idarat has been consistently growing and is now considered to be the prime provider of tourism facilities in Lebanon. The Company’s current investment program consists of developing 2 hotels and 4 restaurants in Beirut. The proposed IFC corporate loan would be used to fund the Company’s investment program as well as to restructure the Company’s balance sheet. It also provides for a loan to Société de Vinci, a group company, for the completion of its sole asset, the Albergo hotel.
IFC’s main role in this project will be to provide long-term funding to the project which is crucial for the rehabilitation of this capital-intensive sector. Having limited access to term resources, the local banking system is unable to provide such funding in any significant amount which partly explains the limited number of hotels built after the end of the war in 1990. Prior to the war, tourism accounted for some 20% of the country's GDP but is now estimated to account for no more than 7% as a result of the widespread destruction to the tourism industry during the war. The project is expected to greatly contribute to the resurgence of tourism as a key sector in Lebanon’s economy.
Environmental Category and Issues
This is a category B project according to IFC’s environmental review procedure. Environmental, occupational health and safety issues associated with this project include: water and power supply; treatment and disposal of sewage; waste/garbage management and disposal; CFCs in cooling and refrigeration systems; and fire protection and life safety. The Sponsor has indicated his willingness to comply with all relevant Government of Lebanon and local standards, as well as World Bank environmental, health and safety guidelines with regards to the investment program.
The is April 15, 1998 from the Public Information Center.
| Date SPI sent to PIC | March 31, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384 |
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| Environmental documents for this project are available at http://www.ifc.org/projects and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html). |
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