“We will start this project as soon as the final details, which do not disadvantage either party, are finalized.” Colonel Michaël Randrianirina, President of the Refondation, announced the imminent start of construction for the Volobe Amont hydroelectric dam. On Wednesday, he presided over the signing ceremony of a memorandum of understanding (MoU) that sets the framework for final adjustments and “paves the way for the finalization of the financial component, to allow for the implementation of the project.” While some elements, such as the final price at which Jirama will purchase the electricity, remain to be specified before final contracts are signed, the main outlines have been established.
According to the Compagnie Générale d’Hydroélectricité de Volobe (CGHV), the MoU defines “the commitments agreed upon between the various parties regarding the State’s participation in the project’s capital, the applicable taxation, CGHV’s commitment to the procurement process, and the financing and construction of associated infrastructure.” These points have been under discussion between the State, CGHV, and project partners since the strategic partners’ roundtable held in late August.
The agreement formalizes compromises on key parameters but has not yet settled the final electricity tariff, which remains a point of contention. Previous reports indicated a gap between the developer’s proposal of 17 cents/kWh and the State’s counter-proposal of 9 cents/kWh. Financial support from the European Union, France, the European Investment Bank (EIB), and the World Bank has been confirmed, with EU Ambassador Roland Kobia noting a European contribution of 212 million euros (over 1 trillion ariary).
The project is expected to produce over 120 MW of electricity, with approximately 60 MW allocated to Toamasina and over 60 MW to the Antananarivo Interconnected Network (RIA). Authorities hope this agreement will accelerate the project, which has been in development since 2016. Colonel Randrianirina emphasized that the urgency is driven by the future of Madagascar, noting that had the project progressed over the last decade, the country would not have suffered from such frequent power outages.
Captured & Published at: 2026-10-01 09:08:34 (Madagascar Local Time EAT)
Original Source: https://www.2424.mg/energie-letat-et-la-cghv-signent-le-dernier-protocole-daccord-qui-precede-le-bouclage-financier-du-projet-volobe-amont/
