In Madagascar, the Compagnie générale d’hydroélectricité de Volobe (CGHV) has signed a power purchase agreement (PPA) with the public utility Jiro sy rano malagasy (JIRAMA). The contract relates to the Volobe hydroelectric power station due to be built in eastern Madagascar. The Volobe hydroelectric project has taken another step forward. The concession contract for the project was signed recently between the Malagasy authorities and its developer, Compagnie Générale d’Hydroélectricité de Volobe (CGHV).
The special-purpose company CGHV is 40% owned by the oil company Jovena, a subsidiary of the Axian group and 25% by Scatec. Investment platform Africa50 has a 25% stake, with the remaining 10% held by Colas Madagascar, a subsidiary of construction company Colas, itself part of the French Bouygues group. According to Africa50, the concession will run for 35 years.
The President of the Republic of Madagascar, Andry Rajoelina, at the ceremony, to sign the concession contract said, “This major step we have taken is part of the Madagascar Development Plan (PEM). We are going to accelerate Madagascar’s industrial development by reducing electricity costs so that we can compete with other countries in the Indian Ocean.”
The Volobe hydroelectric scheme will be located on the Ivondro River, less than 40 km from Toamasina, in the Antsinana region. The run-of-river plant will also be interconnected with PRIRTEM 1, the new 141 km, 220 kV transmission line linking Tananarive to Toamasina. Andritz Hydro, a company based in Vienna, Austria, will supply and install the equipment. The estimated cost of the project is €350 million. Much of the electricity produced at Volobe will be used to supply the capital, Tananarive. According to the Axian group, the project will bring electricity to at least 2 million Madagascans. Overall, the project is expected to employ more than 1,000 people.
Source: Afrik21