Project ID: 19609

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

Commitment amount

$ 79034371.64

Constant 2017 USD

Summary

Funding agency [Type]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Madagascar

Sector

Trade policies and regulations (Code: 330)

Flow type

Loan

Concessional

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

ODA-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2007

Completion

2009

2009-09-21

Actual

Description

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 terms: 20 year maturity, 6 year grace period, 2% interest rate, 0.75% commitment fee, and 1% management fee (or service charge). The purpose of this 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 Project 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. The project 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 centre, a business centre, and a large Chinese restaurant. This project is linked to an umbrella project concerning the ICC (#58425) and #57881, a loan for affordable housing that was undertaken around the same time.

Additional details

This project is known as the The Golden Peacock Five-Star Hotel Construction Project. The French project title is Projet Hôtel 5 Etoiles or Projet d'hôtel de cinq étoile. The Chinese project title is 马达加斯加五星级宾馆项目 or 五星级宾馆项目 or 54栋总统别墅项目 and 我援马达加斯加国际会议中心项目 or 设的54套总统别墅群、五星级宾馆项目. The Ivato International Conference Center (ICC) is also locally known as CCI Ivato. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it records the grace period of this loan as 8 years. AidData records the grace period figure (6 years) that is identified in the November 23, 2007 law, which ratified the loan agreement between China Eximbank and the Government of Madagascar.

Number of official sources

9

Number of unofficial sources

4

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Madagascar [Government Agency]

Implementing agencies [Type]

Anhui Foreign Economic Construction Group Co., Ltd. (AFECC) [Private Sector]

Loan type

Concessional

Maturity

20 years

Interest rate

2.0%

Grace period

6 years

Management fee

1.0

Commitment fee

0.75

Grant element

54.60537566%

Gurarantee provided

No

Insurance provided

No