The Government of Madagascar has entered into an agreement for a hydroelectric project that aims to be operational in 2028.
The plant, which will produce around 750,000GWh a year, will accelerate the country’s energy transition and create 1500 direct and indirect jobs.
The Ministry of Energy & Hydrocarbons signed a concession agreement for the project with Compagnie Générale d’Hydroélectricité de Volobe (CGHV).
In addition, CGHV inked a power purchase agreement (PPA) with Jirama, the local grid.
The agreement between the Government of Madagascar and CGHV outlines a concession period of 25 years that will allow the consortium to pay down the investment and transfer the plant to the government if requested as well as a 20% stake in CGHV to the regulator.
It also includes a commitment from CGHV to nurture partnerships with local and Malagasy suppliers in line with relevant regulations pertaining to procurement during the construction phase, plus a commitment from CGHV to produce electricity for the Jirama local grid, which will then be supplied to neighbouring riparian communities.