Washington October 27, 2009—
IFC, a member of the World Bank Group, is investing $1.8 million in Zara Investment Holding Company to help the company save energy and reduce greenhouse-gas emissions.
Zara is a hotel enterprise in Jordan and an IFC client since 1996. The IFC investment represents one of several global deals under the Cleaner Production Lending Pilot, a $20 million program that supports cleaner production investments among existing IFC clients. Under the program, IFC supports the fight against climate change by helping companies reduce waste and greenhouse-gas emissions. Investments in cleaner production often improve operating efficiency and increase profitability.
Zara will test the use of solar water heating at two of its hotels to take advantage of Jordan’s potential for solar-based renewable energy options. This initiative will be replicated at the company’s other properties, potentially having a strong demonstration effect for other IFC clients in the hotel, retail, and tourism sector around the world.
Thanks to this project, Zara will be one of the first companies in Jordan to become energy efficient using solar energy for water heating in its hotels, said Lina Annab, General Manager of Zara Investment Holding Company. “We expect to reduce our annual energy and water cost by 11 percent or about $1 million.”
The decrease in the company’s electricity and oil consumption is expected to result in an annual reduction in carbon dioxide emissions of approximately 3,700 tons. The project includes water usage reduction measures such as eliminating leakages and introducing water flow reducer aerator controls, which in turn will result in annual savings of around 46,000
cubic meters of water.
“With this financing, we look forward to continuing our long-term relationship with Zara Investment Holding, a company that shares IFC’s commitment to cleaner production and energy efficiency,” said Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit