Project Description

On June 30, 2014, MIGA issued guarantees of $95 million covering an equity investment by SCDM Energie SAS of France ^[1] and a non-shareholder loan from HSBC of the United Kingdom for the CI 27 gas field in Côte d’Ivoire.^[2] The coverage is against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract. 

This coverage is in addition to the coverage MIGA issued in December 2012 and June 2013 for the Block CI 27 Expansion Program. The new coverage brings MIGA’s gross exposure under the project to $515 million. The tenor of the guarantees remains seven years from 2012.

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 while the country struggled with civil conflict. Now that the country’s situation has improved, 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.