Grupo del Istmo de Papagayo, S.A.

A $16.4 million MIGA guarantee is protecting an equity investment in a Costa Rican development project against the risk of transfer restriction. The project involves the development of a 210-room resort set on approximately 120 acres of the Papagayo Peninsula in the country's Pacific northwest province of Guanacaste. The hotel is part of a much larger government program to develop the peninsula's tourist potential, which includes plans to develop residential, hotel, and commercial venues. MIGA's guarantee is for the resort's construction and expansion.

The project is expected to generate considerable government revenues and be a significant foreign exchange earner. Some 500 jobs will be created during the construction phase and more than 340 permanent local positions thereafter. A budget of $3.5 million is allocated for training onsite and abroad. The resort will rely on local building materials, and an estimated 70 percent of products will be purchased locally, notably agricultural produce, providing income to a considerable number of local entrepreneurs.