Africa50, Colas, Jovena and SN Power have signed a shareholder’s agreement to develop the 120-MW Volobe hydropower project on the Ivondro River in Madagascar.
Under the terms of the agreement, the partners commit to co-develop the hydropower plant by acquiring equity in Compagnie Générale d’Hydroélectricité de Volobe (CGHV), the company running the project. The shareholding of CGHV will be comprised of Jovena (40%), Africa50 (25%), SN Power (25%) and Colas (10%).
Jovena will provide institutional support. Africa50, the pan-African infrastructure investment platform, will bring its project development and finance expertise. SN Power will bring in the technical and operational knowhow, and Colas will contribute its expertise as an infrastructure construction company.
The project will be located 40 km from Toamasina and will be operated under a 35-year concession. Its development includes the construction of a transmission line, refurbishment of the access road and infrastructure for the neighboring villages.
Considered as a priority in Madagascar’s national development program, the Volobe project will provide reliable and affordable electricity access to over 2 million Malagasy. The power plant will reduce the cost of electricity to the end user and is expected to create up to 1,000 direct jobs during construction. It is expected to be commissioned by 2023.
“Volobe is a perfect illustration of the positive impact we want to have on the development of our country,” said Benjamin Memmi, chief executive officer of Jovena. “Jovena invests in projects that can modernize Madagascar’s network and offer more reliable, sustainable and accessible energy solutions to all Malagasy.”