AfDB approves US$43mn loan to finance Madagascar's power transmission project

AdobeStock 291140198The African Development Bank will finance the second phase of the nation's power project, which will help connect the Sahofika Hydropower Plant onto the national grid, suppling eight million people with affordable and clean energy

The board of directors of AfDB have approved a loan of approximately US$42.9mn to finance the second phase of Madagascar's major power transmission and interconnection project.

Known as the 'Power Transmission Network Reinforcement and Interconnection Project in Madagascar or PRIRTEM-II, the long-term project includes the construction of a 135km, 220kV interconnection path between the capital, Antananarivo, and the central industrial city, Antsirabé. 

The financing comprises of a loan of US$28.6mn from the African Development Fund, and US$14.3mn from Pillar 1 of the Transition Support Facility. 

The project's second phase will also undertake the electrification of 19 villages in the Soanindrariny, Ambohidranandriana, Ambatomena and Ambohimiarivo municipal councils of central Madagascar. The country, despite huge renewable energy potential, has an electricity access rate of 15% nationally and 6% in rural areas. 

The bank's Madagascan manager, Mohamed Cherif, sadi the project proves the bank's commitment to increasing access to clean and low-cost energy. The project is, in turn, expected to lead to new economic opportunities, industrialisation, increased business competition and job creation across Madagascar

The project lines up with the bank's Country Strategy Paper (CSP) 2017-2021 for Madagascar, which focuses on developing energy and transport infrastructure to support the island's growth, as well as their New Deal on Energy for Africa 2016-2025 to "light up and power Africa" and "improve the quality of life for the people of Africa."

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?