African development bank group approves $4.5m loan for hydropower construction in Madagascar


The African Development Fund (ADF) under the African development bank group has approved $4.5m loan with a grant component to finance the Sahofika hydropower project in Madagascar. The hydropower project located on the Onive River, 100km southeast of the capital Antananarivo will generate affordable, clean energy benefitting some 8 million people.

The project is the largest hydro power project under development in the country.

Sahofika hydropower project

The Sahofika project entails the construction of a 205MW hydroelectric power plant on a Build-Own-Operate-Transfer basis and includes the construction and rehabilitation of 110km of access roads and construction of a 75km, 220 kV transmission line. Once commissioned, the Sahofika project is expected to contribute to the avoidance of 900,000 tons of CO2 equivalent annually.

The government has committed to plough back the returns from the project to reduce electricity tariffs for the people of Madagascar. Additional funding for the project is expected to come from the European Union and the Arab Bank for Economic Development in Africa

According to Dr. Kevin Kariuki, the Bank’s Vice-President for Power, Energy, Climate Change & Green Growth, the support to the Sahofika project exemplifies the Bank’s commitment to delivering quality, affordable energy access across the continent for sustainable and inclusive growth, while helping member countries to responsibly harness their vast, yet underdeveloped renewable energy resources.

The Sahofika project will unlock Madagascar’s hydropower potential, and diversify its energy mix in favour of renewable.

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