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WASHINGTON, D.C., Nov. 29, -- The Pacific Islands Investment Fund (PIIF) -- established in 1995 by the International Finance Corporation (IFC), the private sector financing affiliate of the World Bank Group, to provide financing for small and medium enterprises in the Pacific Island countries -- has recently completed its first investment of WS$400,000 (approximately US$160,000) in the Sinalei Reef Resort development in Western Samoa. The resort, which is located on a beach-front site on the southern coast of the island of Upolu, incorporates 20 high quality bungalows as well as dining and recreational facilities. Owned and managed by local Samoans and built in traditional Samoan style, utilizing local materials, the Sinalei Reef is expected to open early in 1996. The Development Bank of Western Samoa and the Bank of Western Samoa are also financing the project. IFC's investment is in the form of a redeemable preference share investment. PIIF was set up as a US$2 million equity fund on a two- year pilot basis
to invest equity capital in small projects. It also assists investors to mobilize financing from local sources. PIIF invests in projects that are commercially viable, have a positive developmental impact, and are based in IFC's nine member countries in the Pacific islands -- Fiji, Federated States of Micronesia, Kiribati, Marshall Islands, Papua New Guinea, Solomon Islands, Tonga, Vanuatu, and Western Samoa. In addition to the Sinalei Reef Resort project, several other PIIF investments are in advanced stages of evaluation. These include fishing and eco-timber projects in Papua New Guinea; banking and tourism projects in the Marshall Islands; a tourism project in Vanuatu; horticulture, fisheries, and manufacturing projects in Fiji; a dry-dock in the Solomon Islands; and a private hospital in Western Samoa. (More) IFC Press Release No. 96/61 Page 2 of 2 Mr. Harold Rosen, Divisional Manager in IFC's Asia Department said, "PIIF will help to meet a need for long term capital for small and medium enterprises. It w
ill also assist companies to attract financing from local banks." Mr. Rosen added, "In addition to IFC's own direct investments in the region, the Corporation has developed an integrated approach to supporting the private sector in the Pacific Island countries through initiatives such as PIIF, the South Pacific Project Facility (SPPF), and the Foreign Investment Advisory Service (FIAS). PIIF works closely with SPPF, which takes the lead in identifying and evaluating potential investment opportunities. In a sense, IFC is leveraging SPPF efforts and broadening its impact." SPPF, which is managed by IFC, was established in 1990 to provide assistance to small and medium enterprises to evaluate and structure investment opportunities, prepare business plans, and obtain project financing. SPPF, which does not invest in projects, is funded by the Governments of Australia, Canada, Japan and New Zealand, as well as by IFC. Another service IFC provides that is designed to benefit the region is the Foreign Investment Adv
isory Service (FIAS) -- a joint venture between IFC and the World Bank -- that helps developing country governments to structure laws, programs, and institutions to stimulate foreign direct investment. FIAS's office in Sydney, Australia, is the focal point for managing its work in the Pacific region. IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries
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