Supporting Madagascar’s development

Two additional sources of funding have been secured for the Volobe hydroelectric dam project.

While the financing for this large-scale project is not yet fully secured, the construction of the dam is gaining two additional key supporters. The first contribution comes from the U.S. International Development Finance Corporation (DFC), which will provide 2 million USD.

During the opening ceremony of the Africa50 General Assembly on Tuesday, Christopher Walker, Deputy Vice President for Development Policy at the DFC, and Rémy Huber, CEO of the Compagnie Générale d’Hydroélectricité de Volobe (CGHV), the project’s representative, signed the agreement at the Ivato International Conference Center. The company is committed to helping Madagascar’s development, and this project marks a step forward in that direction. The goal is to support the hydro-energy project by financing the feasibility study, stated the DFC representative.

The European Union is another key donor for the project. On Thursday, Roland Kobia, the new EU Ambassador, signed a letter with Rindra Hasimbelo Rabarinirinarison, announcing the EU’s intention to fund the Volobe project. The exact amount of this grant has yet to be determined. According to Roland Kobia, the European Union will continue discussions with partners to work out the details of how it will support the project.

These new sources of funding are expected to significantly advance the development of the Volobe hydroelectric center, which will add 120 MW of electricity to Madagascar’s grid. However, Rindra Hasimbelo Rabarinirinarison emphasized that the construction work will not begin immediately. The financial closing, gathering all investors interested in participating in the project, is scheduled for September 2024, with completion expected in 2025, the Minister added.