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Madagascar Gets AfDB Funds for Sahofika Hydropower Project

Power News - Published on Tue, 26 May 2020

Image Source: Sahofika Hydropower Project
The African Development Fund has approved a 4.02 million euro loan with a grant component to finance the Government of Madagascar’s 30 million euro equity investment in the Sahofika hydropower project, which will generate affordable, clean energy benefitting some 8 million people. The Sahofika project is located on the Onive River, 100 km southeast of the capital Antananarivo. It entails the construction of a 205 MW hydroelectric power plant on a Build-Own-Operate-Transfer basis and includes the construction and rehabilitation of 110 km of access roads and construction of a 75 km, 220 kV transmission line. Once commissioned, the Sahofika project is expected to contribute to the avoidance of 900,000 tons of CO2 equivalent annually.

The government has committed to plough back the returns from the project to reduce electricity tariffs for the people of Madagascar.

Additional funding for the project is expected to come from the European Union and the Arab Bank for Economic Development in Africa

In December 2019, acting as Mandated Lead Arranger, the Bank approved a Partial Risk Guarantee of USD 100 million towards the Sahofika project to mitigate liquidity risk. The Bank is also supporting the Power Transmission Network Reinforcement and Interconnection Project, aimed at reinforcing and expanding Madagascar’s transmission network in order to evacuate the additional power generated by this large hydro project.

The Sahofika project is aligned with the Bank’s New Deal on Energy for Africa, and the Bank’s Climate Change Action Plan, whose collective goals include expanding green energy infrastructure for sustainable and inclusive growth. It is also in line with the Government of Madagascar’s energy policy.

Source :

Posted By : Yogender Pancholi on Tue, 26 May 2020
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