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Projects

Summary of proposed guarantee

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
Azalaï Abidjan Hotel
Project ID
11656
Fiscal year
2013
Status
Active
Guarantee holder
Azalaï Hotels S.A. of Mali
Investor country
Mali
Host country
Cote d'Ivoire
Environmental category
B
Sector
Tourism
Date SPG disclosed
April 25, 2013
Project Board date
May 16, 2013
Gross exposure
 $8.2 million
Project type
SIP
Strategic priority area
South-South
IDA
Conflict Affected

Project description

This summary covers an investment by Azalaï Hotels S.A. of Mali in Azalaï Abidjan Hotel in Côte d’Ivoire. The investor has applied for a MIGA guarantee of €6.1 million ($ 8.2 million equivalent) for a period of up to five years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project consists of the development of a 180-room four-star business hotel in Abidjan. It will be developed under the recently created Compagnie Hôteliére de la Lagune S.A (CHL), a joint-venture that is 60 percent owned by Azalaï Hotels S.A. of Mali and 40 percent owned by SIFCOM, a part of the Sifca group in Côte d’Ivoire. The hotel will be located in a commercial district between the airport and downtown Abidjan. Construction is expected to be completed in 2015.

The total cost of the project is approximately €26.3 million, which will be financed with sponsor equity, local bank loans, and three development finance institutions: the International Finance Corporation, PROPARCO (France) and BIO (Belgium).

Environmental Categorization

The project is a category B under MIGA’s Policy on Social and Environmental Sustainability. Click here to view the Environmental and Social Review Summary (ESRS) prepared by the IFC. Since IFC’s original disclosure of the ESRS in March 2012, the project enterprise prepared an Environmental and Social Impact Assessment (ESIA), required by the Ivorian legislation. This ESIA identified potential environmental and social impacts and proposed mitigation measures, which are similar to those described in IFC’s ESRS. An environmental and social management system for the project (including environmental and social management plans) is currently being developed based on the framework presented in the ESIA.

Development Impact

The project will provide modern hotel facilities to meet the increasing volume of business travelers in the country. It will create employment for about 160 staff and contribute tax revenues and foreign exchange earnings.

The project is aligned with MIGA’s strategic priorities of supporting investments into fragile and conflict-affected countries and countries eligible for concessional lending from the International Development Association. It is also aligned with MIGA’s strategic priority of supporting South-South investments.

The project would be underwritten through MIGA’s Small Investment Program.

 

 
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