Region: East Asia and Pacific (EAP)
Country: Kiribati
Keywords: Knowledge Lab ***, PPPs by Sector *, Sub-national and Municipal PPPs **, Kiribati, Tourism
Document(s):
- Kiribati: Otintaai Hotel749.11 KB
Document Summary:
Brief on IFC's PPP advisory support to the government of Kiribati in the setup of a 25-year concession to attract a private sector partner to rehabilitate and operate the state-owned Otintaai Hotel.
Document Details:
The Republic of Kiribati, an island nation located between Hawaii and Fiji in the Pacific Ocean, has long depended on the public sector and foreign aid. Its govern- ment would like to change this by reforming state-owned enterprises, developing
its infrastructure, and laying the foundation for growth in the private sector. As a part of this reform effort, the government turned to IFC to find a private sector part- ner to rehabilitate and operate the state-owned Otintaai Hotel, which had long been a drain on the state budget. As one of Kiribati’s few hotels, the project is critical to expanding the provision of suitable accommodation to visitors.
Royal Crown Enterprises Limited, a local firm, won the tender in Kiribati’s first PPP in the tourism sector. Under the 25-year concession, Royal Crown will renovate and man- age the 40-room hotel, providing accommodations meeting the equivalent of a three- star rating by Australia’s official accommodation accreditation system. It is estimated that $2.25 million in private sector investment will be mobilized in the first two years. The concession was granted in September 2013.
Updated: October 2, 2024