Returning from his European tour, Colonel Randrianirina announced the restart of the Volobe hydroelectric power plant project. The State plans to enter the capital of this major undertaking, while the issue of the kilowatt-hour price appears to have been resolved.
"We will restart the Volobe project." This was one of the main announcements made to the press by the head of state, Colonel Michaël Randrianirina, upon his return from Europe late Friday.
According to his statements, the construction of this dam and its hydroelectric power plant occupied a central place in his discussions abroad. During his meeting with Emmanuel Macron at the Élysée Palace, the French president "committed to supporting Madagascar's advocacy with the European Union (EU)" to obtain financing through the Green Climate Fund. Similarly, Belgian Prime Minister Bart De Wever assured Madagascar of Belgium's support on this matter.
The occupant of Iavoloha clarified that the executive intends to mobilize subsidies from this UN mechanism created in 2010 to help developing countries promote a low-carbon economy, to finance its equity stake. Colonel Randrianirina also stated that the World Bank had expressed its willingness to financially support the State's entry into the infrastructure's capital.
The project's origins, more precisely named Volobe II, date back to 2016. The first agreements were then signed between the State and the General Hydroelectricity Company of Volobe (CGHV). The ambition is to build a site on the Ivondro River (Atsinanana region) with an estimated capacity of 120 megawatts (MW). However, due to stalled negotiations and the withdrawal of certain consortium members, the project has struggled to take off for ten years.
Electricity pricing has long been the main sticking point in negotiations. The CGHV demanded 17 cents per kilowatt-hour, while the State aimed for 9 cents. Although the concession period was set at twenty-five years by a contract signed in 2023, financial closure remains pending.
Blockages Finally RemovedDuring his visit to Madagascar in April 2025, Emmanuel Macron announced the integration of Électricité de France (EDF) into the consortium, but this entry did not allow financing to be secured. Last July, the Refondation government therefore signed an amendment with the CGHV to extend negotiations until June 2027, keeping discussions open on costs and public shareholding.
Based on Friday's presidential statements, a compromise finally appears to have been reached to mobilize the necessary funds. Although the head of state did not specify the amount Madagascar is about to invest, this public investment would have resulted in a reduction of the tariff initially proposed by the operator.
"The State's participation will allow progress in the realization of Volobe, while reducing energy costs for users," Colonel Randrianirina assured.
With its announced 120 MW, the future power plant should supply the Interconnected Networks of Antananarivo (RIA) and Toamasina. As the head of state emphasized, "in terms of energy, we had only been patching holes so far." Volobe is thus presented as a sustainable solution to the national energy crisis. It remains to be seen whether these promises will become reality, as the restart of this project has already been announced many times over the past ten years.