Washington, January 11, 2013 - The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance arm of the World Bank Group, said today it has provided guarantees for the construction and operation of on/offshore oil and gas facilities that will help Côte d’Ivoire meet its growing energy demand. MIGA’s investment guarantees of up to $437 million are backing an equity investment by SCDM Energie SAS of France and a non-shareholder loan arranged by HSBC Bank of the United Kingdom.
The expansion of Block CI-27 off the coast of Côte d’Ivoire includes improvements to the existing operational production platform and the construction and operation of a greenfield production platform to ensure reliable and continuous supply of natural dry gas for local consumption. Côte d’Ivoire’s energy sector has suffered from a lack of investment during the last 10 years, as the country struggled with civil conflict. Now that country’s situation is improving, demand for power is forecasted to grow at 7 percent annually, requiring significant investment across the energy supply chain.
MIGA’s guarantees are protecting the investments against the risks of transfer restriction, war and civil disturbance, expropriation, and breach of contract for a period of eight years.
“We are pleased to support this investment that will help Côte d’Ivoire benefit from its hydrocarbon resources and ensure the continued reliable supply of natural gas for power generation,” said Michel Wormser, MIGA’s Vice President and Chief Operating Officer.
“The expansion of the Foxtrot field and construction of the Marlin field will allow us to meet the growing demand we are facing said Christian Sage Foxtrot international Chief Executive Officer. “MIGA’s participation gives us the comfort we need to move forward with this investment and was also essential to securing financing.”
MIGA’s support for the project is aligned with the World Bank Group’s Country Assistance Strategy for Côte d’Ivoire, which stresses the critical importance of building energy capacity to sustain economic progress.