The Volobe General Hydroelectric Company (CGHV) has recently signed a concession contract for the construction and operation of the Volobe 2 Hydroelectric Power Plant. This ambitious project, worth 550 million Euros, includes the construction of a dam and a hydroelectric plant with a capacity of 120 MW on the Ivondro River, located 40 km west of Toamasina, the second-largest city in Madagascar.
Volobe Amont is a major hydroelectric project that will have a significant impact on Madagascar’s economic development and energy transition. Here are more in-depth details about the key figures of the project:
- Access to electricity for approximately 2 million people: The Volobe Amont project aims to provide affordable access to electricity to approximately 2 million Malagasy people who previously did not have access to this essential resource. In addition to its energy and economic benefits, this project also emphasizes corporate social responsibility (CSR). Indeed, 5% of the total budget of 550 million Euros will be dedicated to CSR initiatives, which will be implemented locally. These initiatives will include the construction of roads and the extension of the electrical grid to benefit local populations and support their development.
- Contribution to the energy transition: The Volobe Amont hydroelectric power plant will produce approximately 750 GWh per year, which represents nearly 40% of Madagascar’s annual national electricity consumption. This clean and renewable energy production will help reduce the country’s dependence on fossil energy sources and promote a transition to more sustainable energies. Moreover, it will reduce CO2 emissions by approximately 15 tons per year and support the desired energy transition by the government.
- Job creation: The realization of this large-scale project will lead to the creation of 1,500 direct and indirect jobs. These jobs will include positions in the construction, management, operation, and maintenance of the hydroelectric power plant. This job creation will stimulate the local economy and improve the living conditions of workers and their families.
- Concession duration: The consortium responsible for the project will benefit from a 25-year concession, allowing them to recover their initial investment and generate revenue during this period. At the end of the concession, the infrastructure can be transferred to the Malagasy government, if requested, ensuring long-term public ownership.
- Reduction in electricity prices: One of the key objectives of the Volobe Amont project is to reduce the cost of electricity to up to four times cheaper than the current average production price. This will improve the economic accessibility of electricity for households and businesses, thereby promoting the country’s economic and industrial development.
- Development of local skills: The project is committed to enhancing local skills in engineering and advanced technology. Training programs will be implemented to develop the skills of Malagasy workers and encourage their active participation in all phases of the project, from construction to operation. This will contribute to the creation of a skilled workforce and strengthen the country’s technical capabilities.
- Positive environmental impact: Electricity production from hydraulic energy is a clean and renewable energy source that reduces greenhouse gas emissions compared to fossil energy sources. By using this technology, the Volobe Amont project will contribute to reducing Madagascar’s carbon footprint and preserving the environment.
In April, during the second edition of the Regional Business Forum organized by EDBM in Toamasina, Mr. Remy Huber, the General Director of CGHV, presented the Volobe Amont project as a driving force for the regional emergence of the Atsinanana Region and its neighboring regions. EDBM played an essential role in facilitating the dialogue between the public and private sectors.
You can watch the presentation at any time using the corresponding YouTube link: https://youtu.be/Esp7KXKplEY?t=2276