Nouvelle énergie hydroélectrique de l'Onive (NEHO), the company implementing the Sahofika hydroelectric project, has signed a concession agreement with the government of Madagascar. The electricity produced by the future hydroelectric plant will be sold to the public utility company Jiro sy rano Malagasy (JIRAMA).
The Sahofika hydroelectric project is now fully into its construction phase. Its developer, the Nouvelle énergie hydroélectrique de l’Onive (NEHO), has signed a concession agreement with the Madagascan Ministry of Energy and Hydrocarbons. NEHO is responsible for financing, building, operating and maintaining the future hydroelectric plant. The site chosen for its construction is located 100 km from the city of Tananarive.
The future power plant will operate thanks to a dam built on the Onive River. The installation will have a height of 60 m and a crest width of 2 km. The reservoir will occupy an area of 8.9 km2. The hydroelectric facility will be the largest on the island, with a generating capacity of 192 MW.
A 25-year PPA
The NEHO special purpose company is majority owned by the Moroccan investment company Themis, but also by the pan-African group Eranove and Eiffage, a construction and concession group based in Vélizy-Villacoublay, France. The consortium has also signed a 25-year power purchase agreement (PPA) with the state-owned company Jiro sy rano Malagasy (JIRAMA).
“The realization of the Sahofika hydroelectric project is the cornerstone of the transformation of the electricity sector in Madagascar. The project will enable a transition to green energy and a reduction of more than 30% in the average purchase cost for JIRAMA,” explains Tas Anvaripour, Themis’ Managing Director. The construction phase of the project is expected to last 5 years from the start of construction. NEHO estimates that the electricity produced at Sahofika should supply at least 1.6 million Malagasy households.
The project is supported by the African Development Bank (AfDB), which is in charge of syndicating its debt, and has already approved the implementation of a partial risk guarantee of up to 100 million dollars. The pan-African bank has also instructed a senior loan of $100 million. The AfDB is also financing the construction of a 220 kV power line to evacuate the electricity generated at the Sahofika hydroelectric plant.
Jean Marie Takouleu