Friday, December 6, 2013

IFC Helps Chinese Developer Construct Energy-Efficient Building in Tanzania to Increase Property Supply

Beijing, December 5,  2013—IFC, a member of the World Bank Group, has agreed to provide financing to support Chinese developer CRJE Estate Ltd. to construct an energy-efficient commercial building in Dar es Salaam, the largest city in Tanzania. The project will significantly increase the supply of quality hotel rooms and office space in the African nation. 

IFC will provide CRJE Estate a $22 million long-term loan to fund a 29-storey commercial complex, which includes 250 hotel rooms and 8,200 square meters of office and retail space. CRJE Estate, a wholly owned subsidiary of China Railway Jianchang Engineering Co., is one of the largest construction companies in Tanzania. The project will adopt IFC’s green-building standards, which can help reduce a building’s energy consumption by 20 percent. 

“IFC’s advice is integral to the smart and sustainable design, construction and operation of our building and improves the project’s long-term prospects,” said Shi Yuan, Chairman of CRJE Estate. “We can now supply essential infrastructure to investors and travelers in order to facilitate business and create economic opportunities in Tanzania.”

Although Tanzania’s economy grew a robust 7 percent last year, with the World Bank forecasting that it will continue to grow at a similar pace in the coming years, Dar es Salaam’s property and hotel sectors remain significantly underdeveloped. In 2010, IFC already provided $10 million to CRJE Estate for the initial phase of this property project, which was IFC’s first loan to a Chinese company in Africa. The latest financing will more than double IFC’s funding to support the new development plan.   

“The CRJE Estate-led project demonstrates that Chinese developers can be a major force in Africa’s property investment and development,” said Oumar Seydi, IFC Director for Eastern and Southern Africa. “Office infrastructure and hotel development create business opportunities and good jobs, which can help spur further investment and development in Tanzania.”

The hotel will be managed by Rotana Hotel Management Corp., which runs 70 hotels and resorts in the Middle East and North Africa. The project is a partnership between CRJE Estate and Mwalimu Nyerere Foundation, a nongovernmental organization honoring the legacy of Tanzania’s first president, Julius K. Nyerere, which has a long-term lease on the building.

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