Washington, D.C. June 11, 2003—The International
Finance Corporation has signed an agreement to provide a $1.8 million loan
(€ equivalent 1,600,000) to Mali’s Société Malienne de Promotion Hôtelière,
to undertake a major renovation of the Grand Hotel de Bamako.
The renovation of the three-star 91-room business hotel located in downtown
Bamako will involve civil works, installation of an elevator, redecoration,
and redesign of the restaurant, rooms, bar, and banquet and conference
facilities. The hotel will also undergo environmental, health, and fire
IFC’s participation was critical in completing the financing plan of the
$4.6 million project, since long-term financing is not easily available
in Mali. The project will improve the overall attractiveness of Bamako
as a tourist destination, revitalize the architecture and cultural heritage
of the colonial hotel building, maintain 74 permanent jobs, and create
about 100 fixed-term employment opportunities.
Hotels owned by the Société Malienne de Promotion Hôtelière are the only
hospitality facilities in Bamako with an effluent treatment plant following
international environmental, health, and fire safety norms. The Grand
Hotel de Bamako will provide a model for the hotel industry in the country.
Noting that this is IFC’s third loan to the company, Mr. Richard Ranken,
director of IFC's Global Manufacturing and Services Department, noted that
the sponsors have “established a successful and proven business and merit
repeat investments by IFC.” The project also demonstrates support
for small and medium enterprises, a priority sector for IFC, he added.
IFC’s mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people's lives. IFC
finances private sector investments in the developing world, mobilizes
capital in the international financial markets, helps clients improve
social and environmental sustainability, and provides technical assistance
and advice to governments and businesses. Since its founding in 1956 through
FY02, IFC has committed more than $34 billion of its own funds and arranged
$21 billion in syndications for 2,825 companies in 140 developing countries.
IFC's worldwide committed portfolio as of FY02 was $15.1 billion for its
own account and $6.5 billion held for participants in loan syndications.