1. Could you give us an overview of the CGHV and the importance of the hydroelectric project of Volobe for the energy sector of Madagascar?
The Volobe hydroelectric project is part of Madagascar’s national energy framework, aligned with the government’s new energy policy and the Energy Pact signed in January 2025. Madagascar aims to increase electricity access from 30% today to 80% by 2030, which also aligns with UN Sustainable Development Goal 7.
The project will produce an average of 750 GWh per year with an installed capacity of 120 MW. Located near Tamatave, the island’s main port, it will be connected to both the Tamatave and Antananarivo networks through the state’s planned interconnection. At full operation, Volobe will contribute approximately 15% of the country’s electricity needs.
Developed as a public-private partnership, the project allows CGHV to mobilize private funding while enabling the government to focus resources on other areas and continue supporting the public utility, Jirama, until these new energy sources come online.
2. How will the hydroelectric plant of Volobe contribute to improving access to electricity in Madagascar and reducing dependence on fossil fuels?
Thanks to the Volobe Upstream Project, Madagascar will gradually reduce its use of fossil fuels, which have had both financial and ecological costs for years. . By increasing access to electricity, it will help drive economic growth, which is currently constrained by limited energy availability.
3. What are the economic and social impacts of the project, especially in terms of job creation and community development?
While the primary goal is electricity production, the Volobe project goes beyond that. It aligns with Malagasy laws and international standards, including those of the World Bank and IFC in particular. The project will help revitalize local and regional economies and improve access to education, healthcare, and infrastructure for communities in four municipalities.
During construction, about 1,000 to 1,500 direct and indirect jobs will be created, prioritizing the local population. The project also includes training and capacity-building programs, such as a recently inaugurated employment and training center in Atsinanana , aimed at professional development and leadership skills, particularly for youth and women.
4. Environmental sustainability is a major concern for large infrastructure projects. How will CGHV ensure responsible development?
The Volobe project follows an inclusive and sustainable approach, respecting both the natural and social environments. All socio-environmental impact studies were completed from 2017 to 2021, and the project obtained its environmental permit in December 2022.
The project also adheres to international standards required by our lenders, particularly the IFC. Our goal is to ensure that despite construction and operation impacts, communities benefit from long-term socio-economic improvements, including better access to education, healthcare, and gender equality initiatives.
5. How does hydroelectricity complement other renewable energy sources in Madagascar’s energy transition strategy?
Currently, Madagascar relies heavily on fossil fuels for electricity. Hydroelectricity provides large-scale, reliable, and cost-effective renewable energy, while solar and wind are complementary, especially in regions with high solar or wind potential.
Hydroelectric projects like Volobe ensure stability in the energy mix, while intermittent sources like solar and wind help accelerate to reduce the part of thermal production. Volobe is part of a broader vision to diversify and strengthen Madagascar’s renewable energy portfolio.
6. What measures are in place to guarantee long-term operational efficiency, maintenance, and transfer of skills to local teams?
CGHV is committed to developing fully trained Malagasy teams to operate the plant autonomously within five years after the Commercial Operating Date. The concession and purchase agreements with the government cover a 25-year period, after which the plant will be returned in perfect working order to the state. With proper maintenance, hydroelectric infrastructure can last over a century.
7. How is CGHV engaging with international financial institutions, development agencies, or private investors to secure financing and expertise?
We are actively mobilizing resources, finalizing contracts for construction, electromechanical components, and other specialized works that require expertise not fully available in Madagascar.Local companies will handle operations in accordance with their capabilities and expertise.
We are also engaging with private lenders, donors, and the government to ensure competitive financing and reduce electricity costs. Institutions like the IFC are helping organize a pool of lenders for the private component of the project.
8. Do you see opportunities for collaboration with countries like the UAE in financing, technology, or expertise for renewable energy infrastructure?
Absolutely. Madagascar has significant potential in electricity generation and other sectors, supported by a young, dynamic population. The Energy Pact, totaling around $7 billion, expects 60% of funding to come from the private sector.
The government is implementing reforms to ensure fiscal incentives, political stability, and legal security for investors. There are opportunities in hydroelectricity, photovoltaics, wind energy, and networks, as well as in broader economic sectors once electricity availability improves.
9. Finally, what message would you like to send to the readers of Khaleej Times regarding CGHV and the transformative impact of the Volobe hydroelectric project on Madagascar’s future?
Volobe project is recognized as key drivers for socio-economic development. With a focus on sustainability and inclusivity, this project sets a model for future energy initiatives in Madagascar, ensuring long-term benefits for both the population and the economy.
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