The Volobe 2 project reaches a new milestone with the signing of an amendment between the State and CGHV. Discussions will continue until June 2027 to finalize implementation conditions.
A new step forward has been taken. Ten years after the signing of initial agreements, the Malagasy State and the Compagnie Générale d'Hydroélectricité de Volobe (CGHV) signed an amendment on Friday in Toamasina, designed to strengthen the project's implementation framework. This signature constitutes "a significant advance," according to a CGHV statement. The agreement sets a new timeline to meet preconditions for launching construction work and confirms both parties' commitment to developing this future hydroelectric plant. "With the Malagasy State, we stay the course and continue our work," declares Rémy Huber, CGHV's general director.
Beyond this progress, several questions remain pending. The Malagasy State and CGHV have decided to extend discussions until June 2027 to finalize several project components. Negotiations focus notably on financial closure, concession duration, potential State entry into the project company's capital, and the price of electricity produced—one of the main sticking points.
CGHV currently proposes a rate of 17 cents per kWh, approximately 725 ariary. The State, meanwhile, wishes to cap this price at 9 cents per kWh, roughly 385 ariary. The stated objective is to guarantee electricity at a cost compatible with the country's financial capacity. "Our priority remains unchanged: advancing this project beneficial to the country, in line with community expectations and sustainability requirements," affirms Rémy Huber.
Planned on the Ivondro River in the Atsinanana region, the Volobe 2 project involves constructing a hydroelectric plant with installed capacity between 90 and 127 MW, depending on development phases. The produced electricity will supply the interconnected networks of Toamasina and Antananarivo, with the ambition of sustainably strengthening renewable energy production in Madagascar.