WASHINGTON, DC, October 12, 1993 -- The
International Finance Corporation (IFC) will provide a US$17.5 million
financial package to Tourist Company of Nigeria Ltd., to help the company
refurbish the 400-room Federal Palace Hotel and Suites to a 4/5-star international
standard. The total cost of the refurbishment is estimated at US$68.5 million.
IFC, a member of the World Bank Group, is the largest multilateral source
of financing for private sector projects in developing countries. IFC is
providing a US$11 million term loan and has mobilized an additional loan
of US$5.4 million equivalent from the Finance Company for Developing Countries
(FMO) of the Netherlands. IFC will also be providing US$4.0 million in
quasi-equity and US$2.5 million in equity for the project. The balance
of the funding is expected to come from the sponsors, Ikeja Hotels Plc.
and local banks. The renovated Federal Palace Hotel and Suites will provide
the downtown business district of Lagos with business-class rooms and conference
ies and significantly alleviate the shortage of business-class accommodations
in Lagos, Nigeria's commercial capital. The hotel construction program
is being managed by Bovis International. Sheraton Management Corporation
(SMC) will be the hotel operator.