Announcement of Madagascar Receives Thirty-Three Million Dollars Credit for Hydroelectric Project on June 5, 1978

FOR. , IMMEDIATE . ,RtLEASE - . •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/82 JUNE 5, 1978 MADAGASCAR RECEIVES $33 MILLION CREDIT FOR HYDROELECTRIC PROJECT Madagascar is to receive a $33 mill ion credit from the International Development Association (IDA), a World Bank affiliate, to finance a new hydro- electric power project. The Andekaleka Hydroelectric Project will be situated on the Vohitra River 115 kilometers (km) east of Antananarivo, the capital of Madagascar. Its objective is to meet the growing demand for electricity in the capital area until 1992. Increased provision of electric power is essential to the efforts of the Government of Madagascar to develop the industrial sector in order to reduce unemployment and boost exports. • The project consists of the construction of a concrete diversion dam and an intake structure, a tunnel, an underground power house for four 28-megawatt (MW) units, and tail race and access tunnels. It will also finance the supply of two turbines and two 28-MW generators, electrical and mechanical equipment, and a 150-km transmission line to Antananarivo. Engineering services will be provided, as well as technical assistance and training for the Malagasy Electri- city and Water Corporation (JI RAMA). The total cost of the project is estimated at $116 million. This amount is expected to be shared by six other international lending institutions apart from lDA, and the Government of Madagascar. These are the Abu Dhabi Fund, with a possible loan of $5 mill ion; the Arab Bank for Economic Development in Africa, with $10 mill ion; the French Caisse Centrale contributing $16.5 mill ion; the Canadian International Development Agency, with $15.4 mill ion; the Kuwait Fund with about $10 mill ion and finally, the Saudi Development Fund contributing about $12 mill ion. Madagascar, through JI RAMA, will meet the balance of $14.1 mi 11 ion. The IDA credit of $33 million will be on standard terms of 50 years, with 10 years of grace, at no interest, except for a service charge of 3/4 of 1% per annum for administrative expenses. • NOTE: Money figures are expressed in U.S. dollar equivalents . FORM NO. 1121 (5-76) T E C HN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Andekaleka Hydroelectric Democratic Republic of Madagascar $11 6 mi 11 ion. • IDA FINANCING: $33 million, standard IDA terms. OTHER FlNANClNG: Funds are expected from: The Abu Dhabi Fund, about $5 million; the Arab Bank for Economic Development in Africa, $10 million; the Caisse Centrale de :C&>peration E"conomique, $16.5 m111lon; the Canadian lnternat,ional Development Agency, $15.4 million; the Kuwaft Fund, $10 million; the Saudi Fund, $12 million; and the Malagasy Electricity and Water Corporation, $14. 1 mi 11 ion. IMPLEMENTING ORGANIZATION: The Malagasy Electriclty and Water Corporation (JIRAMA), Bolte Postale 200 Antananarivo, Madagascar PROJECT DESCRIPTION: The project will meet the growth in electricity demand until 1992 in the Antananarivo area, and provide for the strengthen- ing of JIRAMA. Its major components are: (a) a concrete diversion dam 10 meters (m) high and 125 m long, and an intake structure; (b) a tunnel 5.2 min diameter and 4 kilo- meters (km) long; an underground power house for four 28-megawatt (MW) units, and tailra. and access tunnels; (c) two turbines and two 28-MW generators; (d) electrical and mechan cal equipment; (e) a 138 kilovolt (kvj, 150-km transmission line to Antananarivo; (f) engfneering services; (g) preliminary inve~tigation and design for a storage reservoir at Ankorahotra; and (h) technical assistance and training of JIRAMA staff. PROCU.REMENT: The civil works are expected to be financed on a joint basis by the four Arab funds and IDA. Civil works contractors have already been prequalified, and procurement is being carried out in accordance with IDA gutdelfnes for international competitive bidding. IDA will also finance turbines, valves, transformers, gates and linings, as well as technical assistance, drilling and pre-engi- neering. CONSULTANTS: The feasibility study, preljminary design and pre-engineering of the project were carried out by Surveyer, Nenniger and Chenevert, tnc. (SNC} of Canada. The Canadian consultant Societe d 1 lngenierie Cartier Limitee has been contracted to prepare tender documents and to supervise project imple- mentation. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 11% 1983 - 0 - •