AEF City Lodge Limited Malawi S  UMMARY   O  F   P  ROJECT   I  NFORMATION   (SPI)    Project Name	Malawi-City Lodge Limited     Region	Sub-Saharan Africa    Sector 	Hotels and Resorts    Project No	009151    Projected Board	September 30, 1998   Date    Company Name	City Lodge Limited    Technical Partner and/or Major Shareholders    	City Lodge Limited, a Malawi registered company wholly owned by the Saidi family. Mr. Patrick Saidi (46) holds 75% of the shares. He has a Bachelor of Law degree from the University of Malawi and runs his own law firm, Saidi and Company. His wife, Annie and their children Priscilla, Patrick (jnr) and Charles hold the remaining 25% of the shareholding.    Project Cost Including proposed IFC investment    	The project is estimated to cost US$1.5 million and IFC has been requested to provide a loan of US$612,000.     Location of project and Description of site    	City Lodge Limited (CLL) has its head office in Blantyre, the commercial capital of Malawi. The hotel will be constructed on a half-acre plot behind the Kandodo Cornershop on the Zalewa Road in the Blantyre central business district.     Description of Company and Purpose of Project    	City Lodge Limited (CLL) is a three story 30 bedroom hotel. The target market for the hotel is business people, both local and non-locals who travel to Blantyre on business. Presently the hotels available in Blantyre do not offer value for money. The services and amenities do not match the high prices charged. The rooms at CLL will offer direct telephone dialing, satellite TV and air conditioning. A restaurant, bar and conference hall will also be built to cater for guests and other visitors. The hotel will also have basement parking for its visitors and guests.     	IFCs finance will complete the financing plan and provide comfort to local financial institutions that are considering the project.    Environmental Category and Issues    	This is a Category B project according to IFC''s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. Environmental health and safety issues include site history and past contamination; disposal of liquid and solid wastes, including sewage; source of power and water supply including fuel storage if applicable; staff accommodation infrastructure; CFC-free cold storage and air conditioning; employee health and safety training; general housekeeping; and fire safety and emergency response preparedness.  IFC has reviewed the information provided by the sponsor as well as information provided in the appraisal report regarding environmental impacts and proposed mitigation measures. :  The site on which the project will be located is just outside Blantyre''s central business district.  The land is undeveloped and, according to the project sponsor and appraisal consultant, has been vacant historically, the sponsors will discharge their wastewater and sewage to the municipal sewerage system.   According to an engineer in the Blantyre Sewage Disposal Works, the municipal system has sufficient capacity to handle the hotels wastewater. The Government has adopted World Health Organization (WHO) limits for key water quality parameters (BOD, COD, pH and total suspended solids). City Lodge will obtain its power from the Electricity Supply Commission of Malawi (ESCOM). Because ESCOM''s supply is not reliable, a standby generator will be installed for use in the event of a power interruption and will be placed in a secondary containment structure capable of holding the entire contents of the tank in the event of a spill or breach. Water will be drawn from the Blantyre Water Board.  The hotel will utilize cold storage and air conditioning equipment that contains non-CFC refrigerants, in accordance with the provisions of the 1987 Montreal Protocol on Substances that deplete the Ozone Layer. The sponsors will conduct an in-house training program for all staff that covers first aid, fire safety and safe operation of appliances and machinery.  In addition, kitchen and other restaurant staff will be instructed in proper hygienic procedures relevant to their jobs.  The sponsors have agreed to comply with all relevant IFC guidelines regarding fire protection and life safety.  If necessary, a desk review of the detailed hotel design will be conducted by a fire safety expert prior to disbursement of IFC funds to ensure that the facility conforms to World Bank guidelines.    The Environmental Review Summary is available at the Infoshop    Date SPI sent to PIC:		August 19, 1998    This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors. It is provided for the purpose of enhancing the transparency of IFCs 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  Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).