African Development Fund helps finance Sahofika hydropower project
The African Development Fund (AFD) has approved a €4.02 million loan with a grant component to finance the Government of Madagascar’s €30 million equity investment in the Sahofika hydropower project.
The project entails the construction of a 205MW hydroelectric power plant on a Build-Own-Operate-Transfer basis. This includes the construction and rehabilitation of 110km of access roads and construction of a 75km, 220kV transmission line.
In December 2019, acting as Mandated Lead Arranger, the bank approved a Partial Risk Guarantee of $100 million towards the Sahofika project to mitigate liquidity risk.
The bank is also supporting the Power Transmission Network Reinforcement and Interconnection Project, aimed at reinforcing and expanding Madagascar’s transmission network in order to evacuate the additional power generated by this large hydro project.
