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 safety upgrades.
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.
