WASHINGTON, D.C., August 6 -- The International Finance Corporation (IFC) and Mitsubishi Corporation (MC) have approved investments of US$2.25 million and US$1.8 million respectively in International House, the first modern international-quality office complex in Tanzania.
International House will alleviate the severe shortage of business infrastructure which has constrained local and foreign firms operating in Tanzania. It will employ state-of-the-art communications systems, PCB-free transformers; CFC-free refrigeration systems; fire safety measures, earthquake protection features, as well as modern water supply and sewage disposal systems. In addition, the project will help fund the rehabilitation of the Dar es Salaam Botanical Garden, a public park adjacent to the building site.
"This project will help remedy the lack of financing that has hindered the development of modern business infrastructure in Tanzania," said Tei Mante, Director of IFC Sub-Saharan Africa Department. "By demonstrating how private sector investment in the real estate sector can be profitable, International House will hopefully encourage other companies to look at opportunities in the country."
The deal marks Mitsubishi Corporation's first investment in Tanzania. It also indicates the firm's interest in expanding business opportunities with major international financing institutions and its willingness to aggressively explore emerging markets.
"The multilateral structure of this deal adds great credibility to the effort," said Yoshiyasu Mizuno, General Manager of MC's Dar es Salaam office and manager of the joint venture company established to implement the project.
"Our company is committed to the support of international consortia that foster development on a worldwide basis. Through the Washington, D.C. office of MC's subsidiary Mitsubishi International Corporation, we would like to expand the range of investment opportunities we are pursuing," added Sumio Takeichi, an Executive Vice President of Mitsubishi International Corporation.
IFC's investment consists of a loan of US$1.65 million and an equity investment of US$600,000. International House will also be owned by Mitsubishi Corporation, Konoike Construction of Japan, Murray & Roberts Construction of South Africa, and Tanzania Telecommunication Company, Ltd. The total project cost is estimated at US$9 million.
Mitsubishi Corporation is Japan's largest integrated trading company, with total trading transactions of US$174.6 billion in 1995. IFC and Mitsubishi Corporation have several other joint projects in operation in Brazil, Chile, Venezuela, and China.
IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
