Madagascar - The Power Transmission Network Reinforcement and Interconnection Project (PRIRTEM) (AFDB-P-MG-FA0-019)

Countries
  • Madagascar
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
Approved
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 16, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Government of Madagascar
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 38.46 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ AFDB website

Updated in EWS Sep 11, 2020


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Project Description

According to bank documents, the proposed intervention is an ADF loan of UA 27.82 million to finance the first phase of the Madagascar Power Transmission Network Reinforcement and Interconnection Project (PRIRTEM-I) aimed at interconnecting the country's three major power grids (Antananarivo, Toamasina, Fianarantsoa). The project plans to build a 220-kV power line with a 120 MW capacity and electrifying the rural areas along the high-voltage line corridor. The line, which will run across three (3) regions (Analamanga, Alaotra Mangoro and Atsinanana), will interconnect RIA and RIT to facilitate energy flow between the two networks and consequently ensure reliable power supply, while also easing the development of large hydropower facilities. Besides the power line, the project also includes the construction of 4 substations (Tana Nord II, Ambohibary, Antsampanana and Toamasina), which will strengthen RIA and RIT and ensure power distribution in the rural areas crossed. This programme will help to optimise and integrate production resources, particularly renewable energy production technologies. The availability of a new power transmission line between the country's two main interconnected grids - Antananarivo (RIA) and Toamasina (RIT) - is a necessary condition for the integration of major hydropower developments on the drawing board such as Volobe (120 MW) and Sahofika (192 MW). By upgrading its hydropower, Madagascar will also reduce its dependence on fossil fuels, the import costs of which have a significant impact on the economy and JIRAMA's financial viability. The project will be implemented over 48 months, with the main works completed in Q4-2023.

The objective of the project is to strengthen and link the two interconnected networks of Antananarivo (RIA) and Toamasina (RIT), and electrify localities and rural areas along National Road 2. PRIRTEM-1 will enhance the development and integration of renewable energy at a lower cost and render power supply more reliable in Madagascar's two largest cities, in addition to providing access to power in a rural area with high agro-industrial and mining potential. The project will contribute to improved business competitiveness, increased industrialisation, job creation and enhanced quality of life for the rural communities, including women actively involved in local economic activities.

Investment Description
  • African Development Bank (AFDB)
Contact Information

MANASSE RATSIMANDRESY Andriambelosoa Tia
t.manasse@afdb.org 

ACCOUNTABILITY MECHANISM OF AfDB

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 crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at https://www.afdb.org/en/independent-review-mechanism/