Madagascar - Sahofika 192 MW Hydropower Project Partial Risk Guarantee (AFDB-P-MG-FA0-018)

  • 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
Dec 13, 2019
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.
National Water and Electricity Company 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)
$ 101.17 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 Feb 1, 2022

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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, this Sahofika 192 MW Hydropower Project Partial Risk Guarantee aims to provide a partial guarantee of the risk of non-payment by JIRAMA. The Sahofika Project consists of the design, construction and operation of a 200 MW hydroelectric power plant on the Onive River, 100 km southeast of Antananarivo (Madagascar). Hydraulic and civil engineering works will eventually increase the capacity to 300 MW. The project also includes the construction of a 63 km transmission line between Antananifotsy and the site, a camp near the power plant, and 6 km of access roads. Construction is expected to take five years. It is expected to produce approximately 1,570 GWh per year. The power plant guarantees a base load capacity of 192 MW (95%), including during the dry season. However, the civil works are designed to allow for an extension to about 300 MW at lower cost. The project is being developed under a Build-Operate-Own-Transfer (BOOT) contract which provides for the design, financing, construction, operation and management of the hydroelectric plant under a 35-year concession agreement and a Power Purchase Agreement (PPA). The concession agreement will be concluded between the project company - Nouvelle energie hydroelectrique de l'Onive (NEHO or the project company) - and the Malagasy State represented by the Ministry of Water, Energy and Hydrocarbons, while the PPA will be signed between the National Water and Electricity Company of Madagascar (JIRAMA) and NEHO.

The objective of the ADF Partial Risk Guarantee (PRG) is to provide risk mitigation to the private developers and the debt providers to mitigate the payment risk of the off-taker (JIRAMA). Specifically, the ADF PRG provides credit enhancement by covering the equivalent of six (6) monthly NEHO's billing to the JIRAMA.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

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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How it works