Rédaction Africa Links 24 with lexpress
Published on 2024-02-27 02:50:00
According to the EU ambassador, the lack of road maintenance “does not sharpen the appetite of partners”. A pressing project to initiate urgently. This is how Isabelle Delattre Burger, ambassador of the European Union, presents the imperative to immediately launch the construction of the Volobe hydroelectric power plant. An emergency. The word is strong. It is likely that Isabelle Delattre Burger, ambassador of the European Union (EU), did not choose it randomly when she addressed the issue of the Volobe hydroelectric power plant construction project during the press conference she held yesterday in Ankorondrano. “I hope that we will soon be able to engage with the government and the private consortium to move forward with the construction of the Volobe dam and significantly increase electricity supply to the population. Since it is a factor of human development and it is a factor of economic development. And it is urgent to really start this dam project”, declared the European diplomat while outlining a range of different EU actions in Madagascar. According to Ambassador Delattre Burger, the EU is supporting with a grant of about 20 million euros for the State’s share in the Volobe project. This is nearly a third of the state’s contribution, she notes. Europe, she adds, is also involved in a project to install electricity transmission lines, related to the construction of the hydroelectric plant. However, the diplomat expresses regret about the delay in its implementation. The memorandum of understanding between the State and the General Hydroelectric Company of Volobe (CGHV) was signed in 2016. The company was specifically created that same year for the development of the project and for it to be realized as quickly as possible. However, so far, the implementation phase is still not in sight. Facing the press yesterday, Isabelle Delattre Burger affirmed that there is still no date in view. Collateral damage. Reading the report of the Council of Ministers of January 24, the start of the construction of the hydroelectric power plants of Volobe and Sahofika are among the priority missions of the Ministry of Energy and Hydrocarbons. As for Sahofika, the project is still in its early stages according to the European diplomat yesterday. The Eiffage group “has exited the project”, she said. The future Volobe hydroelectric power plant is expected to produce 120 megawatts, with an annual production capacity of 750 gigawatts. This corresponds to 40% of the national annual consumption. The city of Toamasina, the Interconnected Network of Antananarivo (RIA), up to the main cities of Alaotra and Mangoro, as well as the Vakinankaratra region will benefit from it. A solution to the energy production shortage in the country. “We are constantly exchanging with the consortium in charge of leading the project forward,” replied Olivier Jean-Baptiste, Minister of Energy and Hydrocarbons, in a message yesterday. As confirmed by the EU ambassador, negotiations on the price of kilowatt-hour are the cause of the delay in the project execution. The state renegotiated the price of kilowatt-hour initially set at 6.3 cents to reduce it to 5 cents. The concession period of the power plant is also reduced to 25 years. This is stated in the concession contract of the site, signed at the Iavoloha State Palace in May 2023. In September of the same year, the Council of Ministers of the collegial government gave the green light for the granting of the necessary authorizations to the CGHV to exploit the land where the hydroelectric power plant will be built. However, so far, the actual construction has not started. The lack of funding is to blame. The total cost of the Volobe project is estimated at around 550 million euros. In the financing architecture of the project, 25% will be covered by the promoter and the rest by loans, according to the explanations of Remy Huber, general manager of CGVH, facing the press on February 16. “The obtaining of financing will condition the start of the works,” he indicates. The Company is conducting rounds of discussions with potential partners and donors, confirms the EU ambassador. The Electricité de France (EDF) group is said to be among the actors in this funding circle for the Volobe power plant, mentioned Isabelle Delattre Burger. In addition to the human development aspect, the diplomat also advances a financial and structural argument for the urgency of realizing the Volobe project and subsequently the Sahofika project. Delays cause collateral damage. “Wanting to reduce costs for the consumer is certainly commendable, but the time lost has resulted in additional costs due to the massive production of electricity via the thermal solution,” regrets the diplomat. As a result, there is an increase in cross debts between the State and oil companies, impacting road maintenance funds. “As partners who have contributed to improving the road network in Madagascar (…) we are regularly frustrated to see that, for years, the Road Maintenance Fund has not had the means to maintain this network,” she says.
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