Announcement of IFC Assists Tunisian Tourism Three Million Ten Thousand US Dollars for Sousse Nord Resort on June 23, 1975

International Finance Corporation 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. I 202-393-6360 IFC Press Release No. 75/12 Monday, June 23, 1975 IFC Assists Tunisian Tourism. $3.l .Million for Sousse Nord Resort The International Finance Corporation (IFC) is investing $2.5 million in loan and $586,500 in equity in Societe d'Etudes et de Developpement de Sousse Nord for the development of a large-scale, integrated tourism resort center near the city of Sousse on Tunisia's east coast. The $65 million project will be carried out in two phases. Basic infrastructure such as roads, sewerage and water supply are being provided by the Tunisian Government, partly assisted by a loan from the World Bank with which IFC is affiliated. Another World Bank loan will help finance a hotel school in the area. • The first phase will cost an estimated $27 million: Tunisian sponsors are providing approximately $6.7 million of the total $10.3 million equity for the first phase and include the Tunisian Government through the Office National du Tourisme et du Thermalisme; Compagnie Financiere et Touristique and Banque Nationale pour le Developpement Economique de la Tunisie -- both Tunisian development finance companies; Sousse area authorities;, the Abu Dhabi Fund; and the Arab International Bank, Cairo. Loans for the first phase a.mounting to approximately $15.3 million are being provided by the Abu DLabi Fund, Compagnie Financiere et Touristig_ue, Banque Nationale pour le Developpement Economique de la Tunisie, Tunisian banks, and IFC. Planned real estate sales totaling some $1.4 million complete the financing. The resort area is comprised of about 635 acres (255 hectares) boarded by two miles (3.3 kilometers) of beaches. The first phase consists of providing complementary infrastructure for the resort, setting up and financing a shopping center, construction of a golf course, marina and other recreational facilities, and ·building 205 ap,-:i.rtments and one hotel with 500 beds. • The second phase of the project will cost an estimated $38 million and . will be financed by cash generation. In addition, some facilities will be financed and built by Tunisian and foreign investors.  - 2 - On completion, the resort is expected to i~clude 11 hotels, 1,787 apartments and 320 villas with a total of 14,800 beds; recreational and other facilities including the golf course and marina, and two beach clubs; restaurants; and shopping and administrative centers. IFC made a small, $37,700. equity investment in 1973 to help establish Sousse Nord as a promotional company to plan, develop, and arrange financing for the resort project now being undertaken. (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, D.C. 20433, Telephone (202) 477-2355). • •