Madagascar - Sahofika – Equity Participation in the Capital of the Neho (Nouvelle Energie Hydroélectrique de l'Onive) (AFDB-P-MG-F00-007)

  • Madagascar
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • African Development Bank (AFDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
May 13, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Government of Madagascar
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 4.39 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ AFDB website

Updated in EWS Sep 8, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank documents, the objective of the project is to provide support to the Government of Madagascar to participate directly, i.e. as EUR 30 million equity holder, in the Société Nouvelle Energie Hydroélectrique de l’Onive (NEHO).

The present intervention relates to the Sahofika Republic of Madagascar Equity Participation Project. It’s an ancillary project in support of the Sahofika Hydro Power Plant project, a 205 MW greenfield hydropower plant development which the Bank is supporting through three separate interventions. It entails the acquisition by the GoM of newly issued shares to the tune of EUR 30 million in the Special Purpose Vehicle (SPV) implementing and operating the Sahofika HPP project. The investment, equivalent to an approximate 10-15% of shareholding, will be used to fund part of the project costs of the Sahofika HPP Project. The Sahofika HPP Project comprises the following main facilities: (i) a main RCC dam of 60m height comprising a water intake, an ungated upper spillway, a gated bottom outlet and an ecologic flow; (ii) a backfill saddle dam of 35 m height and 150m length; (iii) a 4,470m underground tunnel including a vertical surge chamber and two 1,800m long and 2.2m diameter penstocks; (iv) a surface powerhouse with an installed power capacity of 205MW comprising of 6 Pelton turbines and a switchyard; (v) a camp site comprising construction facilities and a permanent Operation and Maintenance (O&M) camp site; (vi) internal roads connecting facilities. The project has two main components, namely: (1) acquisition by the Crown of a 15% equity interest in NEHO, and (2) project management.

Investment Description
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Contact Information
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ACHIENG Jectone Tocho 


The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing,,, and/or You can learn more about the IRM and how to file a complaint at 

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