Press Release
• Today’s official signing paves the way for the project to be operational in 2028.
• The launch of this flagship infrastructure project sends a strong signal to the
Malagasy government of our commitment to supporting the country’s
development.
• This public-private partnership will have a significant socio-economic impact;
most notably:
➢ Propagating energy inclusion by making affordable access to electricity
possible for close to 2 million people.
➢ Accelerating the country’s energy transition with up to 750 GWh produced
renewably per year, amounting to close to 40% of Madagascar’s yearly
energy consumption.
➢ Expediting the surrounding communities’ economic integration and 1,500
direct and indirect jobs creation.
OFFICIAL SIGNING OF CONTRACTS FOR THE VOLOBE AMONT PROJECT, A KEY
STEPPINGSTONE TO 2028
As a top-priority project for the government, the hydroelectric power plant’s launch
will give up to two million Malagasy access to reliable and affordable electricity. The
Minister of Energy & Hydrocarbons, Mr. ANDRIAMANAMPISOA Soloniaina
Rasamoelina, the administrators of the board of directors of JIRAMA Mr.
RAKOTONDRAVAO Fredon, Mr. TSABOTO Roger, Mr. RASOLOFONANTENAINA José
Elysé and the CEO of CGHV (Compagnie Générale d’Hydroélectricité de Volobe),
Rémy HUBER, together, have completed a crucial stage in the project’s execution with
the signing of the Power Purchase Agreement (PPA) between CGHV and JIRAMA and
the Concession Agreement between CGHV and the Ministry of Energy and
Hydrocarbons. This signing, which is also an important step in Madagascar’s energy
and economic-development plan, is both a priority for the government of the
Republic of Madagascar and an important step in the country’s transition to cleaner
renewable energy.
This signing stage was successfully completed thanks to the shareholders’ diverse and
complementary expertise, including AXIAN Energy, a prominent contributor to Africa’s
energy sector; their partners; CGHV’s team, who worked alongside the Ministry of
Energy & Hydrocarbons, and the Jirama, who have provided crucial institutional
support throughout.
Complexe Kube B, Bâtiment, 1er Etage, Zone Galaxy Andraharo, Antananarivo 101 +261 20 23 694 70
26.05.2023
2
A PUBLIC-PRIVATE PARTNERSHIP BETWEEN THE MALAGASY GOVERNMENT AND CGHV
TO ENSURE AN INCLUSIVE ENERGY TRANSITION
The government and CGHV have signed a fair agreement that reflects the potential
benefit to the Malagasy people and maximizes the project’s viability:
• A concession period of 25 years that will allow the consortium to pay down the
investment and transfer the plant to the government if requested.
• 20% stake in CGHV for the Regulator.
• Completion of the government’s objective of reducing marginal cost of
electricity to one-fourth of the current unit cost price.
• A commitment from CGHV to nurture partnerships with local and Malagasy
suppliers in line with relevant regulation pertaining to procurement during the
construction phase.
• A commitment from CGHV to produce electricity for the Jirama local grid as
part of its CSR programme once the power plant becomes operational, which
will then be supplied to neighboring riparian communities.
As a designated project in Madagascar’s Low-Cost Development Plan (LCDP)
launched in November 2018 and revised in 2022, Volobe Amont is a top-priority project
for the country and will have a positive and sustainable impact both nationally and at
the regional level for local communities. The project should:
• Create approximately 1,500 direct and indirect jobs.
• Give over 2 million Malagasy access to electricity (approx. 8% of the country’s
population).
• Accelerate the economic integration and development of the Volobe region
through the repair of the 26 km main road that is the area’s primary access, and
the installation of a 150-meter bridge across the Ivondro river.
• Allow for the reinforcement of the national availability of key skills such as
innovation and engineering.
• Improve the balance of payments by reducing fuel imports.
• Improve JIRAMA’s financial position (restore a favorable margin between selling
price and cost price).
Benjamin Memmi, CEO of the AXIAN group’s energy cluster, stated: “The development
of our economy requires modern, reliable and clean infrastructures. Our collective
growth must be inclusive, creating a positive impact in service of communities. A
strong public-private partnership is key for rapid development. CGHV and the
Malagasy government are the perfect illustration of this winning reality for the
country.”
Complexe Kube B, Bâtiment, 1er Etage, Zone Galaxy Andraharo, Antananarivo 101 +261 20 23 694 70
26.05.2023
ABOUT CGHV
CGHV (Compagnie Générale d’Hydroélectricité de Volobe) is a Malagasy
consortium. CGHV was created in 2016 for the development of the Volobe Amont
hydroelectric project. CGHV is responsible for the development, construction,
management, operation, and maintenance of the Volobe Amont hydroelectric
power plant.
ABOUT AXIAN ENERGY
The AXIAN group’s AXIAN Energy cluster leverages innovative, clean and sustainable
energy solutions to bolster energy inclusion and the African continent’s energy
transition.
AXIAN is an engaged partner in the socio-economic growth of the countries where it
operates. With over 6,400 daring and passionate staff, the group systematically ensures that its products and services have a positive and sustainable impact on the day-to-day lives of millions of Africans.
The AXIAN Group is a signatory of the United Nations’ Global Compact initiative and
committed to the integration of its 10 Sustainable Development Goals (SDGs) into
group strategy, policies and operations.
For more information, visit www.axian-group.com
MEDIA CONTACTS
CGHV: Enick Razafindrakoto, enick.razafindrakoto@cghv.mg
AXIAN: Jean-Denis Boudot, jean-denis.boudot@axian-group.com
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