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Projects

Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Block CI 27 Expansion Program
Project ID
11093
Fiscal year
2013
Status
Active
Guarantee holder
HSBC
SCDM Energie
Investor country
France
United Kingdom
Host country
Cote d'Ivoire
Environmental category
A
Sector
Oil and Gas
Date SPG disclosed
August 30, 2012
Project Board date
October 30, 2012
Gross exposure
 $502.1 million
Project type
Non-SIP
Strategic priority area
IDA
Complex Project
Conflict Affected
ESRS
Revised Environmental and Social Review Summary for Block CI 27 Expansion Program in Côte d'Ivoire

View Summary of Proposed Guarantee


Project Description

In December 2012, MIGA issued guarantees of up to $437 million covering an equity investment by SCDM Energie SAS of France and a non-shareholder loan from HSBC of the United Kingdom and a syndicate of commercial banks for the CI 27 gas field in Côte d’Ivoire. In April 2013, MIGA increased the equity investment cover by $8.1 million, and in June 2013  issued an additional  guarantee of $57 million covering SCDM Energies's shareholder loan to the project enterprise. The coverage is for a period of up to seven years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.

The project consists of the construction and operation of Block CI-27 on/offshore oil and gas facilities including an existing production platform (Foxtrot), gas transportation and onshore facilities, and a greenfield platform (Marlin).

The Block CI 27 expansion project aims to meet the country’s growing energy demand. Côte d’Ivoire’s energy sector has suffered from a lack of investment during the last 10 years, as the country struggled with civil conflict. Now that the country’s situation is improving, a significant increase in energy investment is necessary to meet the population’s needs and support further development. Tapping Côte d’Ivoire’s gas resources will reduce the country’s energy costs and limit the use of foreign reserves for energy imports. 

The project is aligned with the World Bank Group’s Country Assistance Strategy for Côte d’Ivoire, which stresses the critical importance of building energy capacity to sustain economic progress.

MIGA’s support for this investment is also aligned with the agency’s strategy of supporting investments in countries eligible for concessional financing by the International Development Association, countries affected by conflict, and complex infrastructure projects.

In June 2014, MIGA proposes to increase the guarantee amount covering SCDM Energie’s equity investment by $27 million and also issue additional coverage of $74.1 million to HSBC plc for its non-shareholder financing. The covered risks and tenors remain the same.


 

 
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