Region: East Asia and Pacific
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.
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: June 21, 2022