Power Africa Grants $1.87M for Feasibility Studies on Volobe Dam in Madagascar
During the general shareholders meeting (GSM) of Africa50 and the celebration of the 50th anniversary of Africa50 Infrastructure Investment Platform in Tana, the US ambassador to Madagascar Claire Pierangelo witnessed the signing of the agreement between US International Development Finance Corporation (DFC) and Africa50 to undertake feasibility studies for the Volobe hydropower plant (HPP).
The signature follows a recent meeting between US Embassy Chargé d’Affaires Michelle RUSSELL with the Malagasy Minister of Energy (MEH) Olivier JEAN-BAPTISTE to explore how #PowerAfrica can support Madagascar to improve access to electricity while keeping in mind its #NetZero target. In particular, Power Africa can bring into play the US government’s Development Finance Institution (#DFI) and other partners to support the project financially and technically.
By some estimates, as high as 85% of 32 million population in Madagascar — mostly in rural areas — is yet to be connected to the electricity grid. Rated at 120 MW with a projected annual generation of 750 GWh, the Volobe #HPP will provide power to 2 million people whilst avoiding the emission of 15 #tCO2.
The dam is located less than 40 km from the seaport city of Tamatave, which is the 2nd largest city in Madagascar after the capital Tana. More specifically, it is located on the Ivondro river near the rural community of Ambodilazana in the Antsinana region. As part of the project, a 141-km 220-kV transmission line between Tana and Tamatave will be built.
The dam is 25 meters in height and 350 meters in width and will have to hold 15 million cubic meters of water. The hydropower plant will consist of six 20 MW turbines.
It is to be recalled that in May 2023, the Power Purchase Agreement (PPA) was signed between Compagnie Générale d’Hydroélectricité de Volobe (CGHV) and the JIRAMA, the Malagasy national electricity company. The concession is for a period of 25 years with the Malagasy government holding a 20% share in the venture. Africa50 holds another 25% stake and Scatec is also a shareholder. Axian Group, through its subsidiary Axian Energy, is the majority shareholder and driver behind CGHV.
Axian Group is one of the largest conglomerates in Madagascar with interests in several sectors including telecom, real estate, financial services, innovation and energy. CGHV has hired Remy Huber as its CEO and is partnering with renewable energy firm Scatec on the project.
A consortium of lenders consisting of the WB, DFC and Africa50 have expressed interest in financing the construction of the dam once the studies are completed. The US is happy to be able to support the Malagasy government to drive forward its electrification and #decarbonization efforts.
Construction is expected to take three years and up to 1,500 people will be working to build the dam. The Volobe HPP will potentially save EUR 100 million annually as this amount represents the bill to generate an equivalent amount of electricity using fossil fuels.