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Energy : Volobe Project in Madagascar

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Energy : Volobe Project in Madagascar

Green light for construction

The Volobe Amont hydroelectric project in Madagascar has crossed a crucial milestone towards its realization. This represents a significant turning point in the country’s energy transition.

After the signing of concession contracts last May between the Volobe Hydroelectric General Company (CGHV) and the Public Authority, new promising developments have been announced.

Located approximately 40 Km from the city of Toamasina, the Volobe Amont hydroelectric power station is an ambitious project aiming to annually produce 750 GWh of electricity, equivalent to 40 % of Madagascar’s current national electricity consumption. The project is the result of a partnership between CGHV, Axian Energie, SCATEC, and Africa 50, highlighting these companies’ commitment to rural electrification and energy transition in Africa.

One of the most recent advancements is the provisional allocation of 2,000 hectares of land to CGHV for the construction of the Volobe Amont hydroelectric power station. This decision has been approved by the Malagasy government. The construction of the power station is expected to take five years, marking the beginning of a crucial phase of the project.

The Volobe Amont project is also characterized by a 25-year concession agreement, signed between CGHV and the Malagasy government, with the Public Authority participating up to 20 % in the project’s shareholding. This concession ensures stability and continuity of electricity production while significantly reducing the cost of electricity for the Malagasy people. The State’s goal is to make electricity up to four times cheaper than the current average price, at 0.05 USD per kWh.

The scope of the project extends far beyond Ivondro, where it is located. Indeed, Volobe Amont will connect cities in the Alaotra Mangoro, Analamanga regions, and the Vakinankaratra region. This extensive connectivity will enhance electricity accessibility and contribute to the development of these regions, creating approximately 1,500 direct and indirect jobs, and providing new economic opportunities for local populations.

Although there is still a long way to go, recent progress confirms Madagascar’s firm commitment to making Volobe Amont a reality. According to the Ministry of Energy, the next crucial phase will involve the signing of construction and financing agreements, with an estimated timeframe of five months to a year. With these positive developments, the goal of starting hydroelectric energy production in 2028 seems increasingly achievable, paving the way for a more sustainable and inclusive energy future for Madagascar.

J.J.R

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