P-ZM-BC0-001

Project Details
ID: P-ZM-BC0-001 Name: HOTEL INTERCONTINENTAL, LUSAKA Status: Completed Country: Zambia
Sector: Ind/Mini/Quar Approval date: 03-mai-2000 Task Manager: FRENCH Sydney Lexington, PISD2
Total cost: 13924369
Currency: UAC
Source(s) of financing
ADF: 3695819
Implementing Agency: MASARA HOLDING LIMITED

Objectives

The project involves the renovation, rehabilitation and refurbishment of HIL in order to restore the 5-star positioning of the hotel. To achieve this status, HIL needs a major face-lift which will involve the complete renovation of guestrooms, redesigning of the reception lobby and port cochere area, renovation of the bar and restaurants, modernising and refurbishing of the conference centre and the ball rooms, construction of a new health club to complement the swimming pool and tennis courts, upgrading the retail shopping arcade, modernising the business centre, installing a new air-conditioning system, a new waste treatment plant and bringing the entire hotel up to current safety standards. It is the sponsors intention that the hotel will continue to operate smoothly throughout the period of refurbishment, with minimal disturbance to guests.

Description

The project involves the renovation, rehabilitation and refurbishment of HIL in order to restore the 5-star positioning of the hotel. To achieve this status, HIL needs a major face-lift which will involve the complete renovation of guestrooms, redesigning of the reception lobby and port cochere area, renovation of the bar and restaurants, modernising and refurbishing of the conference centre and the ball rooms, construction of a new health club to complement the swimming pool and tennis courts, upgrading the retail shopping arcade, modernising the business centre, installing a new air-conditioning system, a new waste treatment plant and bringing the entire hotel up to current safety standards.

Benefits

The project will (a) save 200 jobs, (b) it will create an estimated 75 new jobs and numerous secondary employment for contractors and suppliers, (c) a large number of the employees will be women, whose economic well-being will thus be enhanced by the project, (d) the in-house training that will inevitably be given to the employees will increase the pool of trained labour and in turn, facilitate the development of the hospitality industry in the country, (e) rehabilitation of HIL will increase the foreign exchange earning capacity of the hospitality industry in Zambia, it will contribute an estimated US$ 40 million to government revenue through sales and value-added tax in the first 10 years as well as help to diversify Zambia's GNP from its heavy dependence on mining.

Rational

The project has a strong developmental impact. HIL is the largest hotel in Lusaka and in the past was best able to provide hospitality services appropriate to a regional capital. Its mismanagement and decline in Government hands has deprived Lusaka of such quality facilities. The Sponsors believe the hotel can reclaim its role as a centre for business and leisure travellers. Besides the preservation/creation of jobs, the sponsors plan to offer 20% of its share capital to Zambian investors. The partnership of Inter-Continental Hotels Corporation (IHC) and the Madhvani Group will bring quality staff training and development and should contribute to the development of the hospitality industry in the country. Tourism is identified as one of Zambia's comparative advantages but still very underdeveloped.