The project is expected to create up to 1,000 direct jobs during construction.
Work entails the construction and operation of a 120 MW hydropower plant on the Ivondro River, 40km from Toamasina, to be operated under a 35-year concession. It also includes the construction of a transmission line, refurbishment of the access road and provision of infrastructure for the neighbouring villages.
Under the terms of the agreement signed yesterday in Paris, the partners have committed to co-develop the hydropower plant by acquiring equity in Compagnie Générale d’Hydroélectricité de Volobe (CGHV), the company running the project. Following this transaction, CGHV’s shareholding is now made up of local industrial business Jovena (40%), infrastructure investment platform Africa50 (25%), hydropower infrastructure specialist SN Power (25%) and contractor Colas (10%).
Volobe is considered as a priority in Madagascar’s national development programme. It seeks to provide reliable and affordable electricity access to over two million Malagasy, thereby contributing to the country’s transition towards renewable energy.
Colas major projects manager Fabrice Monnaert said: “Volobe is an important project for the Colas Group, which has been present on the island for nearly 70 years. In addition to the upgrading of Antananarivo and Nosy Be airports, the completion of the Volobe-Amont project will allow Colas to further its contribution to the development of Madagascar.”
The power plant is expected to be commissioned by 2023.