The Government of the Republic of Zambia (GRZ)

Is inviting Expressions of Interest for the sale of

51% Shares in Mukuba Hotel Limited

Invitation to Acquire 51% Shareholding in One of Zambia's Premier Hotels

The Government of the Republic of Zambia (GRZ) and the Zambia Industrial and Commercial Show Society Limited (ZICSSL) are inviting Expressions of Interest for the sale of 51% shareholding in Mukuba Hotel Limited, from technically and financially qualified investors. GRZ and ZICSSL require a high calibre, experienced strategic equity partner, preferably an investor involved in hotel/tourism or related business, in order to enhance the Company's position in the hotel industry in Zambia and give it an international prominence.

The Company

Mukuba Hotel is the third biggest Hotel on the Copperbelt Province of the Republic of Zambia with a three star rating. It is located in the show grounds of Ndola City, which is the largest commercial and industrial center in the Province. The Hotel is about 4km from Ndola International Airport.

The 16 hectare piece of land on which Mukuba Hotel is situated comprises beautiful gardens and its herd of graceful impala, among other attractions symbolises the hotels unsurpassed quest for excellence which has earned it the title "Gem of the Copperbelt" amongst the local admirers. The hotel building and other ancillary buildings are in a good state of repair. The grounds which also includes a nine hole mini-golf course are well kept and attractive.

Mukuba Hotel Limited is a private company with an independent Board of Directors. It is managed by a general manager who reports to the Board of Directors. GRZ is a minority shareholder with 24% of the shares while Zambia International Trade Fair (ZITF) owns 76 per cent.

Buildings

The main Hotel building has 2 floors and the hotel has a separate administration building. Mukuba Hotel has its own boreholes to supply fresh water round the clock. Sanitation for all the buildings is in a good and serviceable condition.

Banqueting and recreation facilities

The hotel's restaurant with a capacity of 120 dinners provides a selection of international a`la carte and buffet. It can accommodate about 250 people for cocktails. The boardroom on the first floor is equipped with a television and video, slide projector and screen and seats up to 60 people. The hotels gardens also provide first class venues for outdoor functions like weddings, private parties and banquets. The courtyard also provides a unique outdoor facility for light meals.

The hotel has a coffee shop and two bars. One of the bars is equipped with a Cold Room

Accommodation Facilities

Mukuba Hotel has 52 ensuite bedrooms, comprising 31 twin rooms, 1 executive twin, 7 standard doubles, 7 executive doubles, 2 luxury suites and 1 deluxe suite. There is also a one bed roomed flat and a two bed roomed flat with self catering facilities.

All the rooms are complimented with fridge, trouser press, tea/coffee making facilities, hair drier, bedroom and bathroom phone extensions, Digital satellite Television channels, and an in-house 8 hour video channel and piped music.

The average occupancy has varied between 48% and 50% between 1999 and 2002, while the industrial average is around 40%.

Other Facilities

Other facilities include a gift shop and a Copperbelt museum courtesy desk for curios and other artifacts. The Hotel has a car park for up to 200 vehicles. Back of the house facilities include offices for accounting and Human resources departments, and change rooms for workers. The hotel has an orchard for oranges. The General Manager's residence, a three bed roomed house with a study is within the hotel premises.

Market

The market is made up of local and foreign business people, tourists and travellers. The Hotel has a strong position on the market due to its high standards among its competitors. It is located in the fringes of the Ndola City and within reach of some tourism sites which include the world's second largest open-pit copper mines.

With the anticipated growth that will emerge from the copper mines on the Copperbelt and North Western Provinces, and the resultant growth in the Copperbelt based business enterprises, it is expected that the number of business travelers into the Copperbelt will increase and therefore an expected increase in demand for hotel accomodation.

The Mukuba Hotel is strategically placed to grasp a large share of the market as it offers highly adaptive accommodation facilities ranging from single rooms to executive suites. It is centrally located within the easy reach of all major business and tourism centres.

Financial Performance

Summary Profit and Loss Statement for the Year ended 31 September 2003:

(Figures in K'000)	'
Turnover	2,678
Profit/Loss before tax	(434)
Profit/Loss after tax	(434)

Summary Balance Sheet as at 31 March 2003:

(Figures in K'000)	'
Fixed Assets	5,190
Current Assets	692
Current Liabilities	1,488
Net Current assets/ (Liabilities)	(795)
Net Assets	4,395
Employees	99 (as at 19^th April 2004)

Expressions of Interest for the acquisition of 51% shareholding are welcome from financially and technically strong potential investors.

For furthere information and enquiries please contact

The Chief Executive
Zambia Privatisation Agency
Privatisation House
Nasser Road
P.O. Box 30819
LUSAKA, ZAMBIA
Attention: Mr. Robert B. Banda
Fax: + 260 1 225270
Tel: + 260 1 222858, 220177, 227791
Web Site: www.zpa.org.zm

E Mail: rbanda@zpa.org.zm

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