Announcement of IFC Helps Boost Hotel Industry in Zambia on March 23, 1984

1818 H Street.NW International Finance Corporation Washington, O.C 20433, U.S A FOR RELEASE: Friday, March 23, 1984 CONT ACT: Ms. Monique Amaudry Press Release No. 84/23 (202) 676-0578 IFC Helps Boost Hotel Industry in Zambia The International Finance Corporation is helping finance a $30.1 million expansion and rehabilitation project of two major hotels in Zambia jointly with international and local institutions and investors. The project's main component is the addition of 192 rooms to the Hotel Intercontinental Lusaka and renovation of the 198 existing rooms, restaurants, bars and other public areas. Furthermore, the project will also rehabilitate the 88-room Musi-0-Tunya, a tourist hotel at Livingstone overlooking the Victoria Falls. Long term financing for the project includes a loan of $7.5 million from IFC and up to $10.~ million equivalent for thcl\ account of IFC's participant, Creditanstalt- Bankverein, a major Austrian commerc.ial bank, which will provide export credits. The Development"' B~nk of Zambia is lending $4 million equivalent. Equity financing will involve a $3.3 million equivalent investment from National Hotels Development Corporation (NHDC), which is owned by Zambia Industrial and Mining Corporation Limited (Zimco). NHDC directly manages 14 hotels and lodges and advises the Zambian Government on policy matters affecting the hotel sector and tourism in general. Intercontinental Hotel Corporation (IHC), a major international hotel chain which ~urrently operates 86 hotels ln 46 countries throughout the world will invest $0.83 million equivalent in the project. The two hotels are owned by Zambia Hotel Properties Limited (ZHP), which is owned by NHDC and by IHC. The project fits in well with Government's objectives, by improving and expanding the facilities needed to accommodate foreign business travellers and tourists, thus helping diver~ify possible sources of foreign exchange. IFC played an important role in discussions with the Government on decontrol of room tariffs and providing foreign exchange to the hotels for their operational requirements. The Corporation was also instrumental in bringing into the project the Austrian export credit.