OGR July - August Edition 2020

COUNTRY REPORTS
Madagascar gets €4 million from African Dvt Fund
for Sahofika hydropower project
The African Development Fund has
approved a 4.02 million euro loan
with a grant component to finance
the Government of Madagascar’s 30 million
euro equity investment in the Sahofika
hydropower project, which will generate
affordable, clean energy benefitting some 8
million people.
The Sahofika project is located on the
Onive River, 100 km southeast of the
capital Antananarivo. It entails the
construction of a 205 MW hydroelectric
power plant on a Build-Own-Operate-
Transfer basis and includes the
construction and rehabilitation of 110 km
of access roads and construction of a 75
km, 220 kV transmission line. Once
commissioned, the Sahofika project is
expected to contribute to the avoidance of
900,000 tons of CO2 equivalent annually.
The Government of Madagascar is
committed to plough back the returns from
the project to reduce electricity tariffs for
the people of Madagascar. Additional
funding for the project is expected to come
from the European Union and the Arab
Bank for Economic Development in Africa.
Dr. Kevin Kariuki, the Bank’s Vice-
President for Power, Energy, Climate
Change & Green Growth, commented: “The
support to the Sahofika project exemplifies
the Bank’s commitment to delivering
quality, affordable energy access across the
continent for sustainable and inclusive
growth, while helping member countries to
responsibly harness their vast, yet
underdeveloped renewable energy
resources.
As the largest hydro power project under
development in the country, the Sahofika
project will unlock Madagascar’s
hydropower potential, and diversify its
energy mix in favour of renewable at 90%”
“The Sahofika project is a cornerstone of the
Bank’s strong support to the power sector in
Madagascar. The commissioning of
Sahofika would enable national utility
(JIRAMA) to save around 100 million euros
annually in fuel costs, while phasing out the
need for state subsidies,” said Mohamed
Cherif, the Bank’s Country Manager for
Madagascar.
The Sahofika project is aligned with the
Bank’s New Deal on Energy for Africa, and
the Bank’s Climate Change Action Plan,
whose collective goals include expanding
green energy infrastructure for sustainable
and inclusive growth. It is also in line with
the Government of Madagascar’s energy
policy. The African Development Fund
(ADF) is the concessional financing window
of the Bank Group that provides lowincome
Regional Member Countries (RMCs)
with concessional loans and grants in
support of projects that spur poverty
reduction.
Uganda welcomes $20 billion FID as Total and Tullow
finalizes Farm out Deal
T
he Government of Uganda has
applauded the agreement reached
between Total and Tullow, which
will see Total acquire Tullow’s entire
interests in the Uganda Lake Albert
Development Project.
The Minister of Energy and Mineral
Development Hon. Kitutu Mary Goretti
Kimono welcomed the news. “This is a
significant milestone in Uganda’s Oil and
Gas Sector and is a critical development
that takes the sector towards the Final
Investment Decision (FID) that the country
is waiting for. FID is expected to bring an
investment of over USD20 Billion” she
observed.
Mr. Robert Kasande the Permanent
Secretary of the Ministry of Energy and
Mineral Development acknowledged that
the government and the oil companies have
principles agreed on the tax treatment of the
transaction.
The government is also aware of the preemption
rights of CNOOC Uganda Ltd.
He further noted that the government has
received the Sale and Purchase Agreement
(SPA) from the oil companies which is being
reviewed to facilitate grant of the neæssary
approvals and conclusion of the transaction.
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OIL AND GAS REPUBLIC I SPECIAL EDITION