Announcement of IFC Makes First Investment in Nepal Three Million Eighteen Thousand US Dollars for Hotel Expansion Project on June 30, 1975

. . . -FOR, IMMEDIATE . - -·* ......... ~.. . '',( ~ R&l-E·ASJ - .. :::1, ~;; - ,, ~ • ~ International Finance Corporation 1818 H Street, N.W. Washington, D.C. 20433, U.SA 202-393-6360 IFC Press Release No. 75/17 Monday, June 30, 1975· IFC Makes First Investment in Nepal $3.18 Million for Hotel Expansion Project The International Finance Corporation (IFC), an affiliate of the World Bank, has approved its first investment in Nepal, a $3.18 million equity and loan commitment, for a $7.35 million expansion and improvement of the Soaltee- Oberoi Hotel in Kathmandu. The project will more than double the hotel's ca- pacity by increasing the number of rooms from 111 to 294. Debt financing for the project consists of $2.7 million from IFC and $2.7 million from the_ Ne~al Industrial Development Corporation (NIDC). Equity for the project amounts to $1.95 million, of which IFC is • providing $480,000. The remainder is being provided by NIDC~ existing Nepa- lese shareholders, Oberoi Ho'tels (India) Private Limited, a private placement with Nepalese investors underwritten by NIDC, and by Nepalese institutional shareholders. Oberoi Hotels, which has long experience in operating a chain of first- class hotels in India as well as in other countries, will continue to manage the Soaltee-Oberoi Hotel after the expansion. In addition, it will be res- ponsible for securing equipment and providing technical assistance for the expansion. Tourism, an important sector in the Nepalese economy, grew rapidly in the past few years but is hampered by insufficient accommodations. The expansion project is expected to help alleviate this situation and, moreover, generate estimated net foreign exchange earnings of $1.5 million a year. It will also directly provide an additional 200 jobs for Nepalese, and through planned training programs provide technical know-how to the Nepalese tourist industry. • (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Business Relations Unit, 1818 H Street, N.W., Washington, n:c. 20433, Telephone (202) 477-2355)