Press Release

Madagascar to boost energy sector with help of US$6.5 million loan from OPEC Fund

137/2005 December 21, Vienna, Austria
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The OPEC Fund for International Development today signed a US$6.5 million loan agreement with the Republic of Madagascar to help finance upgrading of the Andekaleka hydroelectric power station. The scheme will help raise the living standards among the population by making electricity more affordable.

Located some 220 km from the capital Antananarivo, the Andekaleka power plant is one of the largest in the country, producing almost one-half of Madagascar’s total electrical power. The station is equipped with two 29 MW turbines and is powered by a 50,000 m³ capacity hydroelectric dam situated on the Vohitra River. Constructed over twenty years ago under an earlier OPEC Fund co-financed project, the facility is in need of expansion in order to accommodate Madagascar’s growing need for electricity.

The present scheme will install a third 29 MW turbine at the Andekaleka station along with associated mechanical and electrical equipment. In order to improve water flow from the dam and reduce the accumulation of sand at its intake, an additional gate will be built and the sand collector fully rehabilitated. Also envisaged is the procurement of 7,000 electricity meters for government offices and industrial consumers, which will enable Madagascar’s national water and electricity utility company to collect revenues more efficiently.

After the improvements are made, thousands of communities will be able to enjoy the provision of uninterrupted electrical power. This will also translate into benefits for the environment as the use of fuelwood will be reduced, thereby helping preserve the country’s rainforests and reduce soil erosion and air pollution.

Including the present loan, Madagascar has received OPEC Fund assistance totaling over US$122 million. This amount includes loans for balance of payments support and projects in the energy, health, transportation, agriculture and education sectors. The country has also benefited from two technical assistance grants in the areas of agriculture and energy.

Today’s agreement was signed in Vienna by HE Mr. Benjamin Andriamparany Radavidson, Minister of Economy, Finance and Budget of the Republic of Madagascar, and by HE Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.