China Eximbank provides RMB 1.795 billion government concessional loan for 64MW Ranomafana Hydropower Plant Construction Project

Project narrative

In 2016, China Eximbank agreed in principle to provide Madagascar’s Ministry of Water, Energy, and Hydrocarbons (MEH) a concessional loan for the development of the 64MW Ranomafana Hydropower Plant Construction Project. However, the project experienced a number of delays, and as of late 2022, it had still not reached the implementation stage. Then, on April 6, 2023, China Eximbank and the Government of Madagascar signed a preferential loan framework agreement for the 64MW Ranomafana Hydropower Plant Construction Project. On August 1, 2023, China Eximbank and the Government of Madagascar signed a government concessional loan (GCL) agreement worth RMB 1,795,000,000 ($239,337,340) for the 64MW Ranomafana Hydropower Plant Construction Project. The borrowing terms of the loan include a 31.1-year maturity, a 4.2-year grace period, a 1.5% interest rate, nd a 0.5% management fee. The borrower is expected to use the loan proceeds to partially finance a $216 million commercial (EPC) contract with Sinohydro Corporation Limited, which was signed in 2018. The project involves the construction of the 64MW Ranomafana hydroelectric power plant on the Ikopa River in Anamalanga, roughly 115 north-west of Antananarivo. The power plant's exact locational coordinates are 18°36’0.63’’S, 47°01'37.85’’E. The project also involves the construction of a 90 km transmission line HT/MT from the dam to Tanà Nord (Antanandano). Upon completion, the power plant is expect to to generate an average of 311 million kilowatt hours per year. The project is expected to affect 3 regions (Analamanga, Bongolava and Itasy) 5 districts (Ambohidratrimo, Ankazobe, Fenoarivobe, Miarinarivo and Arivonimamo) and 15 municipalities (Ambohidratrimo, Anosiala, Mahitsy, Mananjara, Ampanotokana, Fihaonana, Mahavelona, Ambohitromy, Antotohazo, Miantso, Maritampona, Soavimbazaha, Ambatomanga, Talata Tsimadilo, Ambohimasina). Sinohydro Corporation Limited is the EPC contractor responsible for project implementation. The project officially commenced on December 19, 2024 and the Ranomafana hydroelectric power plant was originally scheduled to be commissioned in June 2028.