In a significant move towards sustainable energy development, the Government of Madagascar has partnered with Compagnie Générale d'Hydroélectricité de Volobe (CGHV) to initiate a hydroelectric project. The agreement, recently signed by the Ministry of Energy & Hydrocarbons, aims to establish a fully operational hydroelectric plant by 2028.
The hydroelectric plant is projected to generate an impressive annual output of approximately 750,000GWh. This substantial energy production will not only support Madagascar's increasing power needs but also contribute to the country's ongoing energy transition. The project is expected to create around 1,500 direct and indirect jobs, fostering economic growth and employment opportunities.
The concession agreement, which outlines the terms of collaboration between the Government and CGHV, spans a period of 25 years. During this time, the consortium will work towards recouping the investment costs and, if requested, transfer the plant to the government. Additionally, the agreement stipulates that the regulator will hold a 20% stake in CGHV, ensuring a balanced and regulated approach to the project.
Recognizing the importance of engaging local stakeholders, CGHV has committed to forging partnerships with both local and Malagasy suppliers. These partnerships will adhere to relevant procurement regulations during the construction phase, fostering collaboration and promoting economic development within the region.
Furthermore, CGHV has inked a power purchase agreement (PPA) with Jirama, the local grid provider. This agreement solidifies CGHV's commitment to supplying electricity to the Jirama grid. The generated power will subsequently be distributed to neighboring riparian communities, ensuring wider access to sustainable and reliable energy sources.
With the hydroelectric project poised to enhance energy production, stimulate economic growth, and support job creation, Madagascar takes a significant step towards achieving its energy goals. The collaboration between the Government and CGHV highlights the nation's dedication to sustainable development, while fostering partnerships that promote local involvement and benefit neighboring communities.
