China Eximbank provides RMB 385 million government concessional loan for Five Star Hotel, Ivato International Conference Center, and Luxury Villas Construction Project (Linked to Record ID#58425 and #57881)

Project narrative

On November 22, 2007, the High Constitutional Court of Madagascar authorized the ratification of an RMB 385,000,000 government concessional loan (GCL) agreement with China Eximbank for the Five Star Hotel, Ivato International Conference Center, and Luxury Villas Construction Project. This GCL carries the following borrowing terms: a 20 year maturity, a 6 year grace period, a 2% interest rate, a 0.75% commitment fee, and a 1% management fee (or service charge). The purpose of the project was to construct the the Ivato International Conference Center (ICC), a five-star hotel, and 54 luxury villas in Antananarivo (near the Ivato International Airport). The Ivato International Conference Center was originally supposed to be funded by a Chinese Government grant (see Record ID#72750), but it and the 5-star hotel were later fused into one project so that the grant element for the hotel loan would be sufficiently concessional to meet IMF standards. The Golden Peacock Five-Star Hotel has more than 200 rooms, including 2 presidential suites. The ICC can accommodate 1,000 people and has an area of 9,141 square meters and includes a conference hall, a news center, a VIP restaurant, and related facilities. The ultimate purpose of this project was to promote tourism and international conferences in Madagascar. The 54 villas sit on an area of about 23,000 square meters. Anhui Urban and Rural Planning and Design Institute was responsible for the design of the project and Anhui Foreign Economic Construction Group Co., Ltd. was responsible for the implementation of the project. Project implementation officially commenced on December 2, 2007. A groundbreaking ceremony for the luxury villas was held on June 17, 2008 and the construction of these villas was completed within 3 months. The construction of the 5-star hotel commenced on September 26, 2007 and ended on June 25, 2009. It passed Chinese technology standards on August 28, 2009. A handover certificate for the hotel was granted on September 21, 2009. The ICC was officially handed over to the Malagasy authorities on June 19, 2008 and an opening ceremony was organized on September 2, 2008. Then, in 2010, the Government of Madagascar set up a state-owned company — called the 'Madagascar Estate Company' (MADECO) — to take over the ICC and Golden Peacock Five-Star Hotel. The luxury villas reportedly proved not to be commercially viable and were later transformed into a luxury resort with a conference center, a business centre, and a large Chinese restaurant.