Madagascar: the Public Company Jirama Under the Pressure of its Huge Debt

Soukaina
Soukaina
2 Min Read
JIRAMA

In Madagascar, Jirama, the national water and electricity production and distribution company, is again under pressure after an ultimatum issued by fuel carriers. The latter demand that a solution be found by August 15th.
In a letter addressed to the Minister of Energy, the fuel carriers indicate that Jirama owes them nearly 14 billion ariary – a little less than three million euros.

The professional association of hydrocarbon carriers is warning the Minister of Energy that if the company does not receive the sum it is asking for, it will be forced to take decisions that will lead to paralysis. These decisions will include halting deliveries to Jirama, which relies on the hydrocarbon carriers’ deliveries to keep its thermal power plants running at full capacity during the dry season, and the drop in the level of the rivers to provide electricity to the population.

A “Non-Respect of Jirama’s Commitments”

Hydroelectric power stations have been struggling to operate in recent weeks. This led to numerous load shedding, particularly in the capital, Antananarivo. In their letter, the fuel transporters mention “the non-respect of Jirama’s commitments” concerning the staggering of the payment of arrears, of two billion ariary per month, distributed equitably between all the transporters and decided in April with the minister.

The twenty companies gathered within the association explain that they are “in a quasi-situation of insolvency”. Contacted, the Minister of Energy has not yet responded to our requests.

Soukaina Sghir

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