China Eximbank pledges RMB 970 million loan for 40.5MW Ambodiroka Hydroelectric Power Plant Project

Project narrative

In 2016, China Eximbank agreed in principle to provide an RMB 970 million loan to the Government of Madagascar for the 40.5MW Ambodiroka Hydroelectric Power Plant Project. This project involves the construction of a 40.5 MW hydropower plant on the Betsiboka River in northwest Madagascar, 200 kilometers of 220kV transmission lines, and 18 kilometers of 63kV transmission lines, as well as associated step-up and step-down substations. CAMCE signed a commercial contract on September 9, 2008. However, this project has experienced many delays and challenges, and in April 2015 the Malagasy Government issued a new call for bids on the commercial contract. Three Chinese companies submitted bids: CAMCE, China International Water & Electric Corporation (CWE), and Sinohydro. All three were shortlisted and issued tender dossiers [Dossier d’Appel d’Offres (DAO)]. Then, on July 29, 2020, the Government of Madagascar re-awarded the commercial contract to China International Water & Electric Corporation (CWE). As of August 2020, there was still no clear evidence of a finalized loan agreement between China Eximbank and the Government of Madagascar for this project, although a French Treasury document indicates that China Eximbank financed the project at some point in 2021. Also, while the current implementation status of this project is unknown, a June 2019 presentation by the Director General of Energy at Madagascar's Ministry of Water, Energy and Hydrocarbons included the Ambodiroka Hydroelectric Power Plant Project on a list of "ongoing" hydroelectric power projects.