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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
Compagnie Hôtelière du Golfe
Project ID
7457
Fiscal year
2009
Status
Active
Guarantee holder
Société Malienne de Promotion Hôtelière
Investor country
Mali
Host country
Benin
Environmental category
B
Sector
Tourism
Date SPG disclosed
May 07, 2008
Project Board date
May 22, 2008
Gross exposure
 $1.4 million
Project type
SIP

View Summary of Proposed Guarantee


MIGA has issued a guarantee of $1.4 million to Société Malienne de Promotion Hôtelière (SMPH), covering its $6.8 million equity investment in Compagnie Hôtelière du Golfe in Benin. The coverage is for a period of up to ten years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project involves the acquisition of the Hotel de la Plage in Cotonou, following a competitively bid privatization process. The existing facility will be demolished and a new 100-room, four-star hotel of international standing will be built in its place. For the implementation of the project, SMPH will establish a local company—Compagnie Hôtelière du Golfe S.A. 

The existing facility is located along the Atlantic coast in the administrative heart of Cotonou. Despite its prime location, the condition and architectural layout of the existing hotel are not conducive to attracting business travelers and tourists. The newly designed facility will cater to the needs of business travelers and vacationing tourists.

The project is expected to support the Government of Benin’s efforts to reform the public sector, rehabilitate state-owned assets, and develop the tourism sector. It is expected to provide much-needed modern hotel facilities, increase the number of visitors and tourists, and contribute to tax revenues and foreign exchange earnings. The project will generate both skilled and unskilled jobs and transfer proven managerial and technical skills to locals.

MIGA’s participation in this project is aligned with its strategic priorities as the issued guarantee supports a project in an IDA-eligible (among the world’s poorest) African country, and a South-South investment. The guarantee was underwritten through the agency’s Small Investment Program.

 

 
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