Project number:


Business sector:

Property and tourism

Notice type:


Environmental category:


Approval date:

16 Jun 1998



PSD disclosed:

22 May 1998

Project Description

The project involves the construction and operation of a 164 room international standard business and tourist hotel located on Nevsky Prospect in St Petersburg, Russia.
The project will be the first fully privately financed new hotel construction in Russia, and will introduce a new competitor into the St Petersburg hotel market. The objectives of the project are to address the local shortage of international standard hotels, to provide a competitively priced product, to support further business development, to create employment opportunities during construction and operation and to transfer knowledge to local construction and service industry employees.

Transition Impact

The project will promote the transition process by encouraging greater competition in the St Petersburg hotel market and transferring technology and knowledge to the construction and hotel sectors of the local economy.

The Client

ZAO Hotel Corporation is a Russian joint-venture company formed by Moscow-America, Radisson SAS, Uçgen, the U.S. Russia Investment Fund. The company aims to construct and operate a 164 room international standard hotel for business travellers and tourists in St Petersburg, Russia.

EBRD Finance

Proposed financing consists of:
  • an 11-year US$ 11.5 million (ECU 10.5 million) senior loan;
  • an 11-year US$ 3.0 million (ECU 2.7 million) subordinated loan.

Project Cost

US$ 29 million (ECU 26.4 million).

Environmental Impact

This operation was screened B/0 and, as such, required an analysis of the environmental impact of the construction and operation of the hotel. The project sponsor completed the EBRD's environmental questionnaire for construction projects, which confirmed the following:
  • The hotel site has no past history of contamination, and soil tests have been carried out to confirm this. Neighbouring facilities are characterised as environmentally benign.
  • The hotel will be constructed using good international practice and in compliance with national environmental, health and safety requirements. The contractors employed to undertake the construction have comprehensive site safety procedures, which have been reviewed by EAU, and accord with EU requirements and good international practice.
  • Hotel construction will not involve any harmful or hazardous materials and will include in the design environmentally positive features, such as comprehensive heat insulation.
  • The operators of the hotel will likewise follow good international practice, bringing environmental benefits such as the recycling of certain waste streams, and the re-use where possible of items such as towels to cut down on energy and water consumption and the use of detergents.
The hotel operators will be required to report annually to the Bank on environment, health and safety issues.

Technical Cooperation


Company Contact


Business opportunities

For business opportunities or procurement, contact the client company.

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