Echoes from the field

ALSF supports the republic of MADAGASCAR for the development of the volobe amont hydro-electric power project

On 26 May 2023, the Republic of Madagascar, Jirama and Compagnie Générale d’Hydroélectricité de Volobe (CGHV) signed the concession agreement and the power purchase agreement (PPA) for the development of a 120 MW Hydroeletric power plant to be located on the Ivondro River, 40 kilometers from Toamasina.

The African Legal Support Facility (the “ALSF” of “Facility”) is pleased to have supported the Government of Madagascar (the “Government”) through all the stages leading to the signing of the concession agreement and the PPA of this top-priority project for the Government, which is in line with its Low-Cost Development Plan (LCDP) launched in November 2018 and revised in 2022.

This signing represents an important step in the country’s transition to affordable and cleaner energy. As highlighted by Mr. Soloniaina Rasamoelina ANDRIAMANAMPISOA, Minister of Energy of Madagascar, this project will represent an investment of nearly 550 million Euro, and with an installed capacity of 120 MW, the power plant will generate an estimated 750 GWh/year on average. This will provide two millions people with low cost access to electricity. This project will also significantly reduce the dependency of the country on diesel and heavy fuel oil, with Jirama, the national utility electricity company, currently spending annually 1,100 billion MGA for its fuel supply.

The ALSF assistance to the Government included legal, technical and financial advice with support from Trinity International AARPI and John Ffooks on legal aspects, Finergreen Africa on financial aspects, and CPCS Transcom Ltd on technical aspects. The ALSF also collaborated with the Global Infrastructure Facility to provide a comprehensive and cohesive advisory solution to the Government and its negotiation team.

The project is expected to create approximately 1,500 direct and indirect jobs and accelerate the economic integration and development of the Volobe region through the repair of the 26 km main road that is the area’s primary access, and the installation of a 150-meter bridge across the Ivondro River. The signing of the concession agreement and the PPA is a milestone for the project to be operational in 2028.                                                                                                                                

About the ALSF

Established by the African Development Bank in 2008, the ALSF assists African governments in negotiating complex commercial transactions, providing legal and technical assistance, and developing capacity building tools in the key sectors of infrastructure and public-private partnerships, energy, natural resources and extractive industries, as well as on sovereign debt and creditor disputes.


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