International Finance Corporation

Summary Of Project Information (SPI) Project Name Nepal-Upper Bhote Koshi Hydroelectric Power Project Region Asia Sector Power Project No007365 Projected Board DateDecember 8, 1997 Company NameBhote Koshi Power Company Technical Partner and/or Major Shareholders Panda Energy International, Inc. Harza Engineering Company International L.P. Himal International Power Corporation Project Cost Including proposed IFC investment Up to US$3 Million exposure to undertake US$ interest rate swaps. Location of project and Description of site Kathmandu (Nepal) Description of Company and Purpose of Project The objective of this project is to allow Bhote Koshi Power Company (the Company) to hedge its interest rate risk. The Company has requested that IFC establish a Risk Management Facility in order for it to enter into interest rate swaps on its FMO, Dresdner and Bayerische Vereinsbank loans under the IFC B loan. The interest rate swaps will effectively convert these loans from variable rate US Dollar (US$)to fixed rate US$. These interest rate swap transactions will be priced on the basis of standard IFC pricing guidelines for client risk management transactions. IFCs total exposure under these swap transactions is estimated at approximately US$3.0 million. This project will further support the developmental initiatives cited in IFCs investment in the Project. Interest rate risk management would improve the stability of the Companys future cashflows and enhance its economic viability. Environmental Category and Issues The proposed transaction is of financial nature only, and accordingly is classified as a Category C Project according to IFCs environmental review guidelines and procedures. No further environmental review is required. Date SPI sent to PIC Revised: April 8, 1996 December 4, 1997 For Additional Information contact: Corporate Relations Unit - telephone: (202) 473-7711 facsimile: (202) 974-4384 Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).

Summary Of Project Information (SPI) Project Name Nepal-Jomsom Mountain Resort Region Asia Sector Project No008464 Projected Board DateNovember 1, 1997 Company NameJomsom Mountain Resort Technical Partner and/or Major Shareholders Mr. R. P. Pradhan and his family will own 100% of the hotels equity. Project Cost Including proposed IFC investment Project cost is $7 million and proposed IFC investment is $2.45 million A loan and $1.05 million B loan - Location of project and Description of site Jomsom, Mustang District. The hotel will be located in Jomsom in West Nepal. The site is a relatively flat piece of land with no vegetation. - Description of Company and Purpose of Project The sole purpose of the company would be to build and operate the hotel in Jomsom, Nepal. - Environmental Category and Issues This is an environmental review category B project. Environmental, health and safety issues include liquid effluent treatment and disposal, solid waste, water supply, power supply, site selection and land use, fire safety, employee training, and emergency response. The land is barren and is not being used for any purpose. It is not suitable for growing and there is no vegetation on the land. The mitigating measures include a waste water treatment plant, an incinerator for solid waste disposal, water filtration plant for drinking water, wind mill for environmentally friendly power generation. In order to minimize the environmental impact, the Sponsors are planning to build the hotel with no more than two floors thus eliminating the need for sprinkler system. The employees will be provided with training to respond to fire and other emergencies. Likewise, there will be no air conditioning, which will eliminate the issue of CFC. The is August 15, 1997 from the Public Information Center. Date SPI sent to PIC July 25, 1997 For Additional Information contact: Corporate Relations Unit Telephone: (202) 473-7711 Fax: (202) 974-4384 Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).

Good Karma Group of Companies Private limited (Holding Company, Parent Company) has undertaken the construction and development of a greenfield apartment complex in Kathmandu Nepal totalling 186 apartments, of which 56 serviced apartments are proposed to be operated by Marriott International (the Operator, Marriott) and the balance 130 apartments will be sold to the general public. The 56 serviced apartments (the Project) will be owned by the sponsors under a 100% subsidiary company of the Parent Company named Good Karma Hospitality Pvt. Ltd. (Company).

Nepal Hospitality Group Pvt Ltd (NHGPL, the Company or the Borrower), was incorporated in 2012 as a private limited company under MS group (the Group). The MS group, a reputed conglomerate in Nepal , has diversified presence in textile, steel, consumer goods, real estate and other sectors. The Group is currently venturing into hospitality industry by developing a midscale hotel in Kathmandu, under the Fairfield brand of Marriot Group. The proposed hotel is a greenfield, Three star facility, hotel property (the Project), to be operated by Marriott International (the Operator). It will have a total of 110 rooms with 10 floors, 2 basements, and will include other amenities such as one restaurant, fitness centre, two meeting rooms, bar and a shop.

Stakeholder Effects: (i) Increased access to finance for SMEs, including women owned SMEs: The project is expected to contribute positively towards access to finance for SMEs in Nepal, which identify access to finance as a major constraint. In addition to the growth in the overall SME portfolio, Siddhartha Bank will pursue a more inclusive strategy by increasing its outreach beyond the urban areas and cater to SMEs in rural areas with due focus on women owned SMEs. SMEs play a central role in the creation of employment in emerging markets. By improving access to finance for SMEs, the investment with Siddhartha Bank is expected to create more jobs in the economy. (ii) Increased access to climate finance: The Project also will contribute to climate mitigation efforts in Nepal by increasing access to climate finance for clean transportation, climate smart agriculture, and green buildings. IFC anticipates that the Project will build SBL's capacity to identify and evaluate green lending opportunities and increase access to green financing in Nepal over the next three years.

Project level outcomes Stakeholder effects: Increased access to finance for SMEs: SMEs in Nepal suffer from an estimated financing gaps of US$2.9 billion, as SMEs face greater credit constraints especially during periods of tight liquidity. The Project will increase access to finance for underserved and rural SMEs to meet their requirements for working capital and business expansion, and provide them with greater financing certainty to allow them to grow their businesses. Market creation outcomes Inclusiveness: The Project will demonstrate to other banks the viability of SME centric business model (as most of the 27 commercial banks have historically focused on the corporate segment) with a particular focus on rural SMEs. This is expected to encourage other banks to adopt the business model and expand their outreach to rural SMEs. The Project's catalytic effects will be augmented by IFC's systematic engagement in Nepal alongside other banks to reach the underserved rural SMEs.