On May 29, 2017, MIGA issued an $85 million guarantee covering equity and shareholder loan investments by Aéroports de Paris Management S.A, Bouygues Bâtiment International S.A.S., Colas S.A. and Meridiam Infrastructure Africa Fund, Meridiam Infrastructure Africa Parallel Fund FIPS, Meridiam Infrastructure Africa Parallel Fund SCsp into Ravinala Airports S.A. in Madagascar. The coverage is for a period of up to 15 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.
The project consists of the financing, rehabilitation/ expansion, operation and maintenance of the Ivato airport in Antananarivo and the Fascene airport in Nosy Be, currently being managed by the state-owned enterprise Aéroports De Madagascar (ADEMA). Works include (i) works at Ivato in preparation of the Francophonie summit (expansion of apron and presidential pavilion as well as establishment of a dedicated process path in the existing terminal for arriving/departing delegations), to be held in Antananarivo (the country’s capital) at the end of November; (ii) construction of a new passenger terminal at Ivato airport and limited refurbishment works in the existing terminal; (iii) renovation of the runway and Tarmac II to host aircrafts Code E and one Code F at Ivato; (iv) renovation of the runway and limited expansion of the current passenger terminal at Fascene airport; and (v) rehabilitation of landside facilities at both airports, including the construction of new wastewater treatment plants, improvement of the existing incinerator at Fascene airport to meet emission standards, improvement of surface water drainage, construction of a new waste water treatment plant and installation of an oil water separator at Ivato airport
The project is a category A under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary prepared by the International Finance Corporation (IFC) for their investment in the project.
The project’s major expected development impact is to help upgrade and improve Madagascar’s most important international and local gateways by implementing much needed investment, delivering better services and offering more efficient air travel options. It will thus contribute to facilitate tourism, a key sector to unlock economic growth in the country, as well as help develop linked economic activities and create jobs. The project is also expected to have a significant demonstration effect for investors into the country, as well as providing a platform for the implementation of further public-private partnerships.
MIGA’s proposed support for this investment is aligned with the Agency’s priorities of supporting investments into countries eligible for financing from the International Development Association (IDA) as well as conflict-affected states (FCS). It is also aligned with the 2015 World Bank Group Systematic Country Diagnostic (SCD) for Madagascar, which emphasizes the importance of unleashing private sector potential and the financing of high impact investments in the country.