On June 28, 2013, MIGA issued a guarantee of €5.7 million ($7.4 million equivalent) covering an investment by Azalaï Hotels S.A. of Mali in Azalaï Abidjan Hotel in Côte d’Ivoire. MIGA’s coverage is for a period of up to 10 years against the risks of 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 two development finance institutions: the International Finance Corporation and Banque Ouest Africaine de Développement (BOAD).
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 was underwritten through MIGA’s Small Investment Program.