Tamboho Hotel

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MIGA has issued a guarantee of Euro 0.46 million ($0.65 million) to Tamboho International Ltd., covering its $0.52 million shareholder loan to Tamboho S.A. in Madagascar. The coverage is for up to six years against the risks of transfer restriction, expropriation, and war and civil disturbance. The hotel will be located in the Tana Water Front neighborhood in the capital city Antananarivo and offer amenities for both tourists and business travelers, including conference and leisure facilities. It will meet international standards and accommodate a steady growth in the number of business and leisure travelers to Madagascar. The number of travelers to Antananarivo has been increasing for the past few years at an average annual rate of 15 percent and a further spike in the number of visitors is expected during the African Union Summit in 2009 and the Francophonie Summit in 2010. The supply of hotel rooms in the city does not meet the growing demand. The project is expected to have a demonstration effect as other hotels in Antananarivo will want to improve their own accommodations in order to remain competitive. It is expected that the hotel will generate local jobs as well as taxes for the government over the next five years. The hotel will also support the growth of related industries such as transportation, food and beverage providers, and tour operators. 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); an investment in an African country; and a South-South investment. The project was underwritten through MIGA's Small Investment Program.

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