Tim Redman, CEO of Colliers Development, a subsidiary of Colliers International SA, said the change in government in Madagascar two years ago had created political stability and growth in the country, and this offered opportunities for SA companies.

The project is aimed at assisting Madagascar in its bid to host the 2006 African Union conference.

A contract was signed and endorsed by Madagascar's finance minister and the president of the country's national assembly, which will finance 40% of the cost of the project. The balance will be provided by financial institutions.

The project includes a 200-bed hotel, a 1000-seater convention centre, offices for the national assembly and a retail component of about 10000m². Redman said that the company was also looking for a South African hotel management company to manage the hotel.