Hotelera Cali S.A.

MIGA issued a $4.3 million guarantee against the risk of currency transfer to Marriott International, Inc. for the construction and operation of a 243-room luxury business and resort hotel located in the province of Heredia, seven miles outside San José, Costa Rica. In conjunction with this coverage, MIGA has issued $17.2 million in insurance for the Bank of Nova Scotia's loan to the project against the risks of currency transfer, expropriation, and war and civil disturbance.

The project will be majority-owned by private investors, with Marriott operating the hotel under a 30-year agreement. It will be one of the largest private sector hotels in Costa Rica, and the only hotel in the San Jose area operated by an international hotel management company.

The project is designed to meet the increasing demand for hotel rooms for both tourist and business travelers to Costa Rica. In addition to bolstering tourism, the new hotel will stimulate the local economy, as it will rely on local goods and services. Construction materials, telephone systems, and bathroom equipment will all be procured locally. The project will also have a regional impact, as furniture will be procured locally and imported from Guatemala and Mexico. Finally, a substantial amount has been budgeted to extensively train Costa Ricans to manage and operate the hotel. It will eventually employ 340 people on a permanent basis, of which 325 will he Costa Rican nationals. Training programs will be conducted both in Costa Rica and in North America.