JIRAMA ANDEKALEKA HYDRO EXPANSION

Promoter – Financial Intermediary

PUBLIC ENTITY(IES), JIRO SY RANO MALAGASY SA

Location

• Madagascar

Description

The project consists of the expansion of an existing hydropower station (Andekaleka) by two further turbines (unit size 33 MW), including associated equipment and an upstream sand trap. The operation will also reinforce existing substations and networks, associated transformers, switchgear, cables and various auxiliary and control equipment to enable evacuation of the additional power to the main network.

Objectives

The purpose of the project is to increase the country's power generating capacity from indigenous renewable energy sources, so as to lower the dependence on imported fuels and decrease the cost of electricity generation generally.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 31 million

Total cost (Approximate amount)

EUR 82 million

Environmental aspects

If located within the EU, the expansion of a hydropower plant and the substations would fall under Annex II of the EU EIA Directive. According to national environmental legislation, the capacity expansion of the project falls below the national threshold (150 MW) above which an Environmental Impact Assessment (EIA) would be mandatory; thus the authorities have not requested an EIA. The works will be within existing infrastructure; therefore the residual environmental impacts will be less significant. The main temporary impact is expected during construction. The project site is isolated with no immediate neighbours. Any possible negative social impact is thus expected to be negligible. According to the promoter there is no nature conservation site in the vicinity that could be affected.

Procurement

Being a public entity the promoter will have to procure works, services and supplies in compliance with the provisions of the Bank's Guide to Procurement. The promoter agreed to comply with these guidelines when tendering the contracts proposed for financing by the Bank. A contract notice for the works and supplies of the second turbine was published in the Official Journal of the European Union.

Status

Signed - 8/12/2017