Madagascar - Sahofika – Equity Participation in the Capital of the NEHO (Nouvelle Energie Hydroélectrique de l'Onive)

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.