Eight years after the awarding of contracts, the construction project for two hydroelectric power plants aimed at addressing the significant energy shortage in the capital and its surroundings had come to a standstill. Following lengthy tariff renegotiations by the Malagasy government, one of the two consortia even requested the termination of the concession contract last year.
However, recent decisions in successive cabinet meetings over the past two weeks now declare the “commencement of construction” for these two power plants in the first quarter of 2023. While the private sector remains skeptical about the announced construction timelines, it welcomes the political awareness and hopes this marks a turning point.
On paper, the Volobe and Sahofika power plants are expected to collectively generate over 300 MW, potentially resolving the persistent power outage issues in Antananarivo.
While the projected construction start dates raise doubts, the private sector applauds the political acknowledgment, given the urgency of the situation.
“The private sector has long been requesting electricity production that is notably green, environmentally friendly, abundant, and of good quality – all of which we currently lack from the national distributor Jirama,” said Johann Pless, President of the Infrastructure and Utilities Commission within the Groupement des Entreprises de Madagascar. “So, we are very pleased that this strategic decision has been made public and is announced in the general policy of the State for the year 2024.”
However, the challenge lies in translating these political announcements into tangible actions. The private sector warns that it will closely monitor the project’s progress, especially the tariff negotiations.
The private sector also remains hopeful that national and international experts involved in the hydroelectric projects will be heard and finally have decision-making and arbitration power to enable the commissioning of these two dams – crucial for the country’s economy and development.