In support of Madagascar’s energy transition, the Volobe Amont hydroelectric project has reached a decisive milestone with the arrival of EDF in the consortium currently composed of the AXIAN Group and Africa50. The EDF Group is bringing its experience as a developer of hydroelectric projects, particularly in Africa, along with its technical expertise and financial engineering to strengthen the project’s solidity.
This development was materialized by the signing of a new CGHV shareholders’ agreement and the amendment to the concession relating to the design, financing, construction, operation and, ultimately, the transfer of the Volobe Amont hydroelectric power plant and its associated infrastructure to the Malagasy State.
The signing ceremony took place at the Iavoloha State Palace, in the presence of His Excellency Mr. Andry Rajoelina, President of the Republic of Madagascar, and His Excellency Mr. Emmanuel Macron, President of the French Republic.
A new dynamic for a structuring project
Recognized as one of the Malagasy government’s priority energy projects, Volobe Amont is part of a shared vision of sustainable impact. EDF’s entry reinforces this shared ambition, supported by existing shareholders and the government, to guarantee reliable, sustainable, and inclusive access to energy.
These new agreements also mark a redefinition of the project’s shareholder structure:
AXIAN Energy, via NEA Volobe: 37.5%
EDF Renewables: 37.5%
Africa50: 25%
The entry of the Malagasy State into the consortium is planned at the financial closing at a rate of 20%.
Concrete progress towards the realization of the project
Far from bringing in the expected tax revenue, this measure is proving counter productive. The Volobe Amont project continues its momentum with major progress.
On the financial front, the shareholders are fully committed to financial close, with the structural support of the IFC and the World Bank Group. The project also benefits from growing support from lenders, mobilizing concessional debt, which will contribute to improving the overall financial conditions of the project.
On the technical side, the launch of the call for tenders (DAO) will take place in the coming weeks.
Geological and hydrological studies have been strengthened and consolidated, ensuring the reliability of the site and optimizing the design of the future dam.
On the socio-environmental level, the project is strengthening its local presence with the opening of dedicated offices in Tamatave and Volobe, and is deploying its actions in compliance with national regulations and the best international standards, in terms of relocation, protection of biodiversity and social development.
On the occasion of the signing of the agreements, the shareholders’ representatives commented:
“The signing of these agreements marks a major milestone for Volobe Amont and demonstrates the determination of all stakeholders, both public and private. Bringing together technical expertise, financial resources, and ongoing dialogue with the region is a powerful lever for Madagascar’s economic development,” said Rémy Huber, Director General of the CGHV
“EDF’s arrival in the Volobe Amont consortium confirms the strength of our shared vision: to provide Madagascar with reliable, sustainable, and sovereign energy. This strategic partnership confirms our commitment to building infrastructure that serves the development and well-being of its populations,” Benjamin Memmi, CEO, AXIAN Energy stated.
“I am pleased to see EDF’s teams harnessing their experience in managing complex industrial projects to develop the Volobe hydroelectric project, which will provide carbon-free, reliable, and competitive electricity. This project illustrates EDF’s commitment to supporting the energy transition of its public and private customers, in partnership with leading players and with the support of international donors,” Béatrice Buffon, Executive Director of the EDF Group and CEO of EDF Renewables explained.
“We are delighted to welcome EDF as a strategic partner on the Volobe project, which we have developed at an advanced stage jointly with the Axian group. Thanks to EDF’s leading industrial expertise, we will be able to accelerate the final phase of the project’s development and deliver high-quality infrastructure for Madagascar,” Demba Diallo, Director of Project Development at Africa 50 added.