The Volobe 2 project has reached a new milestone with the signing of an amendment between the State and the CGHV. Discussions will continue until June 2027 to finalize the implementation conditions.
A new step has been taken. Ten years after the signing of the initial agreements, the Malagasy State and the Compagnie Générale d’Hydroélectricité de Volobe (CGHV) signed an amendment in Toamasina on Friday, aimed at strengthening the project’s implementation framework. According to a CGHV statement, this signing represents a “significant step forward.” The agreement sets a new timeline to meet the prerequisites for launching construction work and confirms the commitment of both parties to continue developing this future hydroelectric plant. “Together with the Malagasy State, we are staying the course and continuing the work we have started,” said Rémy Huber, Director General of CGHV.
Beyond this progress, several questions remain unresolved. The Malagasy State and CGHV have decided to extend their discussions until June 2027 to finalize several aspects of the project. Negotiations focus on financial closing, the duration of the concession, the potential entry of the State into the project company’s capital, and the electricity tariff, which remains one of the main sticking points.
At this stage, CGHV is proposing a tariff of 17 US cents per kWh, or approximately 725 ariary. For its part, the State wishes to cap this price at 9 US cents per kWh, or approximately 385 ariary. The stated goal is to ensure electricity costs are compatible with the country’s financial capacity. “Our priority remains unchanged: to advance this project, which is useful for the country, in line with community expectations and sustainability requirements,” affirmed Rémy Huber.
Planned on the Ivondro River in the Atsinanana region, the Volobe 2 project involves the construction of a hydroelectric plant with an installed capacity between 90 and 127 MW, depending on the development phases. The electricity produced is intended to supply the interconnected grids of Toamasina and Antananarivo, with the ambition of sustainably strengthening renewable energy production in Madagascar.
Captured & Published at: 2026-07-13 21:48:59 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/07/barrage-hydroelectrique-volobe-2-donne.html
