AfDB Invests €36.5 Million in Madagascar’s Power Project

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The African Development Bank (AfDB) is assisting Madagascar in its efforts to improve its electricity grid through the construction of the Sahofika hydroelectric power plant. On November 15, loan agreements to this effect were signed. They are part of the second phase of a project in the Indian Ocean island country to improve and integrate power transmission networks.

Madagascar will be able to complete the design, building, operation, and transfer of the 205-megawatt Sahofika hydroelectric power plant on the Onive River, 100 kilometres southeast of the capital Antananarivo, with the help of the African Development Bank.

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In addition, a 220 kV power line with a capacity of 300 megawatts is being built between Antananarivo and Antsirabe over a distance of 135 kilometres.

According to Kevin Kariuki, AfDB Vice President in charge of Electricity, Energy, Climate, and Green Growth, the multiple agreements reached boosted Madagascar’s energy sector’s optimism. They provide the prompt supply of energy generated at Sahofika, removing the danger of energy payments, which might arise in the case of independent enterprises that are frequently subject to disputes.

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The African Development Bank’s (AfDB) Country Manager in Madagascar, Adam Amoumoun, stated that the financial organization would continue to assist (the island’s) efforts to strengthen the energy sector.

With around 42,000 additional beneficiaries, the second phase of the Power Transmission System Reinforcement and Interconnection Project is planned to improve the national rate of access to electricity to 30%.

Finally, the program’s execution should result in the creation of around 300 direct employment, 30% of which will be earmarked for women, at the cost of over €101 million.

According to the statement, the African Development Bank served as the project’s lead agency by funding feasibility studies and organizing co-financing partners, including the European Investment Bank (EIB) and the OPEC Fund for International Development (OFID).

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