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| Business |
| US$12m needed for Namiwawa project |
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by
Ephraim Munthali, 14 April 2004
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19:30:53
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Shareholders in the Namiwawa Hotel project last Thursday signed a deal to pump more money into the venture and resume construction.
Malawi Development Corporation (MDC), the majority shareholder, and Namiwawa Hotel Committee, confirmed the development on Tuesday.
“Yes it is true,” said MDC chairman Brian Bowler. “We have gone back on track,” he said.
But Bowler could not give more details about the deal and referred the matter to Namiwawa Hotel chairman Isaac Lamba.
Lamba said he was waiting for PTA Bank, one of the major financiers, to sign the agreement before making a formal announcement.
Insiders said this week parties to the deal agreed to source a total of US$12 million to fund the hotel’s construction.
Development Bank of Southern Africa (DBSA) is expected to contribute US$7.2 million while PTA Bank would provide US$3.5 million, sources said.
Admarc Investment Limited, hotel’s main contractor SR Nicholas and South Africa’s Legacy Hotels are expected to provide US$0.5 million each. Legacy Hotels were contracted to manage the hotel.
The hotel is expected to cost about US$6 million more than the intial total capital of US$ 6.7 million due to delays, insiders said.
Initially, MDC owned 82 percent of the hotel’s shares after pumping in US$5.5 million capital in the project.
Press Trust owned the remaining 18 percent of the venture having invested US$1.2 million. The present shareholding was not yet clear.
Bowler said the hotel’s construction, scheduled for completion a year ago this month, will be through by December 2004.
Completing the 145-room five star hotel is important to Malawi’s tourism drive, according to tourism industry experts.
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