Search results

Specialist graphite producer and graphene developer Tirupati Graphite plans to develop small-scale hydropower capacity to power its mining and processing operations in Madagascar. The UK-listed miner announced on 8 March that it is redeveloping an initial 100kW hydropower facility at its Sahamamy mining site that was last operated in 2005 and initiating further studies for hydropower across the Sahamamy and Vatomina operations, which are located about 70km south of the eastern port of Tamatave, as part of a sustainable mining strategy.

Watched by President Andry Rajoelina, Groupe Filatex officially inaugurated its Tamatave Solar PV project on 24 January. The project’s 20MW first phase began construction last April and started injecting 2MW of power into the grid from July. Another 5.6MW is expected to come online in mid-2021 for full commissioning by year-end. Tamatave Solar PV Phase 2 is intended to increase capacity to 46MW by end-2022.

Local renewables operator GreenYellow, Axian, Société Générale, GuarantCo and African Guarantee Fund announced on 15 October the closing of a $19m transaction to support the debt funding of the 20MW Ambohipihaonana solar PV plant in the Ambatolampy district. Société Générale, acting as sole arranger and co-lender with Business Network International and Banque Malgache de l'Ocean Indien, raised $19m of debt.

Groupe Filatex plans to commission four solar PV plants with total capacity of 50MW in Q1 2021.The plants had been due to start up by December, but the date was pushed back due to coronavirus travel restrictions. The 20MW Tamatave, 12MW Majunga, 10MW Diego and 7MW Tulear solar plants will be the first renewable projects commissioned by the company in a recent effort to transition into greener energy production, chief operating officer George Conde told African Energy.

Investor interest in Madagascar picked up when companies were attracted by the island state’s potential for power sector developments, as former president Hery Rajaonarimampianina hosted an influential donor and investor conference in 2016.The going has since proven tough for many investors, as early movers have run into payment issues with malfunctioning state utility Jiro sy Rany Malagasy (Jirama) and the administration has proved unpredictable in renegotiating power purchase agreements (PPAs).

The African Development Fund, managed by the African Development Bank (AfDB), has approved a €4.02m ($4.4m) loan to help fund the government’s €30m equity investment in the 205MW Sahofika hydropower project on the Onive River. The loan includes a small grant component and additional funding for the government’s investment is expected from the European Union and the Arab Bank for Economic Development, which are both expected to provide around €13m, with the government providing €1.6m.

Madagascar Oil’s new owners hope their Tsimiroro field development, whose first phase is at the front-end engineering and design stage, will be largely immune to the Covid-19 pandemic and parallel slump in global oil prices. Speaking to African Energy as part of the company’s campaign to find development partners, chairman Al Njoo said Madagascar Oil was talking to a number of Chinese companies, including Hong Kong-based bunker service provider Chimbusco Pan Nation Petro-Chemical Company, a joint venture between Petro-China and Shanghai-based Cosco Shipping. It is also in discussions with a number of Chinese banks.

The United Nations Development Programme (UNDP) and Russia are co-funding a $4m programme to improve access to water and power in southern Madagascar. Projects will include four solar power plants of up to 100kWp each, 2,000 solar PV kits for the most remote locations, plus drinking water and agricultural infrastructure.

The African Development Bank board has approved a Partial Risk Guarantee (PRG) of $100m to support the 205MW Sahofika hydropower project on the Onive River. The bank’s support will include risk mitigation to the project developers and the debt providers by supporting the payment obligations of Jiro sy Rany Malagasy, the state-owned offtaker.As well as the power plant, the project involves the construction of a 110km transmission line to the site, and construction of camp facilities and 112km of access roads.

Africa50, Colas, Jovena and SN Power have signed a shareholders’ agreement for the co-development of the 120MW Volobe hydropower project on the Ivondro River. The agreement signed on 4 October sees the four partners take equity stakes in project developer Compagnie Générale d’Hydroélectricité de Volobe, which has been granted a 35-year concession to design, build and operate the IPP under a public-private partnership with the government of Madagascar.

Good progress is being made on the 200MW Sahofika hydropower project with the initialling of a concession agreement on 12 September. A framework agreement was signed in May during a visit to France by Madagascar’s President Andry Rajoelina which set out a timetable for the development of the project. The initialling of the 35-year concession agreement took place on schedule and a power purchase agreement is expected to be initialled by mid-October.

Two major hydropower projects totalling 320MW are set to be built in Madagascar to address the island state’s long-standing electricity supply issues. The 120MW Volobe plant and 200MW Sahofika plant are expected to commission in 2023-25, according to Rémy Huber, general manager of the CGHV consortium developing the Volobe project. “The Volobe and Sahofika projects will together play a major role in meeting the government’s energy sector objectives of doubling electricity production, reducing the cost of generation and expanding access to electricity for the population of Madagascar,” Huber told African Energy in an interview on 19 June.

Turkish company Aksa Enerji Uretim commissioned the second 12MW unit of the rehabilitated Ambohimanambola heavy fuel oil (HFO) plant in January. The company won a contract to rehabilitate and operate the 24MW plant – which is adjacent to a 66MW HFO plant Aksa brought online in July 2017 – in April 2018 and began operating the first 12MW unit on 6 December. Aksa has a five-year dollar-denominated contract to sell power to national utility Jiro Sy Rano Malagasy (Jirama).

The new government has suspended a licensing round launched in November offering 44 blocks in the Morondava Basin. An announcement from the Office of National Mines and Strategic Industries on 15 February said the round was suspended until further notice.

Madagascar launched a licensing round on 7 November, offering 44 offshore blocks in the Morondava Basin. The blocks are each about 1,940km2. Roadshows are planned for London on 19 February and Houston on 26 February, and Omnis will have teams at the PESGB Prospex event in London on 12-13 December and at the AAPG’s Appex Global event in London on 27 February-1 March. Companies are required to prequalify before submitting bids and the round closes on 30 May.