Arusha Times (Arusha)
27 June 2009
Arusha — CRDB Bank managing director Dr Charles Kimei said at the signing ceremony that they had decided to embark on the initiative so that Tanzania could have more international-class hotels that meet both tourists' and people's needs.
According to Kimei, the project would help Tanzania to improve the tourism sector and thus bring sustainable development through taxes and uplift local communities through the creation of jobs. The upgraded hotel would also attract more international conferences to take place in Arusha Region.
"As banks, we normally look at projects that help people generate income and create job opportunities," he said.
CRDB Bank contributed a loan amounting to USD 11m, Preferential Trade Area Bank USD 10m and Tanzania Investment Bank about USD 3m. The hotel's renovation was expected to take 15 months and would be ready by the end of next year.
The project would also be financed through equity contribution of 41 per cent from local and foreign investors and long-term loans from commercial and development banks.
"It is worth noting that of the 41 per cent equity contribution, that is USD 17m, foreign investors will contribute 90 per cent and the rest will be contributed by local investors," he noted.
The agreement was signed by CRDB Bank managing director Dr Charles Kimei, TIB acting managing director Bahati Sanga and PTA Bank principal officer James Kabuga.
Those who signed for HODI were Marcolmn Pryor, Southern Africa Enterprises Development Fund (SAEDF) chairman, a majority equity holder in the project; Ndewirwa Kitomari, HODI chairman, and Emmanuel Wado, a HODI official. When completed the hotel would have over 400 beds.
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