Madagascar - Andekaleka Hydroelectric Project

Document of The World Bank FOR OFFICIAL USE ONLY FllE GOPN 1795 a MADAGASCAR AN DEKALEKA HYDROELECTRIC PROJECT STAFF APPRAISAL REPORT May 15, 1978 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  MADAGASCAR ANDEKALEKA HYDROELECTRIC PROJECT CURRENCY EQUIVALENTS Currency Unit = Malagasy Franc (FMG) US$1.00 = FMG 240 FMG 1 = US$0.004167 FMG 1,000 = US$4.17 WEIGHTS AND MEASURES 1 kilovolt (kV) = 1,000 volts (V) 1 megawatt (MW) = 1,000 kilowatts (kW) 1 gigawatt hour (GWh) = 1 million kilowatt hours 1 megawatt hour (M4Wh) = 1,000 kilowatt hours (kWh) 1 kilometer (km) = 1,000 meters (m) = 0.62 miles 1 cubic meter (m3) = 264 US gallons 1 kilocalorie (kcal) = 1,000 calories (cal) ABBREVIATIONS AN4D ACRONYMS BADEA : Arab Bank for the Economic Development of Africa CCCE : Caisse Centrale de Cooperation Economique CIDA : Canada International Development Agency EdF : Electricite de France EEM : Electricite et Eaux de Madagascar JICA : Japan International Cooperation Agency JIRAMA : Malagasy Electricity and Water Corporation SEM Societe d'Energie de Madagascar SMEE Societe Malgache de l'Eau et de l'Electricite FISCAL YEAR January 1 - December 31 This report was prepared by M. Heitner, R. Bloor (consultant) and F. Johansen, and is based on information obtained during a mission to Madagascar in August 1977.  FOR OVFICL UZ ONLY MADAGASCAR ANDEKALEKA HYDROELECTRIC PROJECT TABLE OF CONTENTS Page No. I. THE ENERGY SECTOR ...................... . . 1 Local Energy Resources .. ..... .......... 1 Imports and their Transformation.. 1 Uses of Energy .1...... ....... . 1 Comparative Energy Pricing . 3 Sector Development Strategy 4 II. THE POWER SECTOR 6........ .... ............ 6 Institutional Background. . . 6 Legal Framework ... . ....... . .... ..6 Existing Facilities ...... ......... . 7 Power Market .7 ........ 7 Past Demand in Interconnected System . 8 Development Strategy .. 9 ...... .. ..... 9 III. THE PROJECT ... 16 JIRAMA's Investment Program . . 16 Project Objectives and Description ...16 Cost Estimates ...17 Basis for Cost Estimates ...18 Financing Plan ......... ..... 19 Procurement ...19 Engineering and Construction . . .20 Disbursements ............... 21 Ecology ....................... 21 IV. JUSTIFICATION . . .25 Background...... 25 Future Power Market ...... 25 Alternative Expansion Proposals ..... 27 Least Cost Solution ..... 28 Return on Investment . ... ............ 29 Risks ..... 29 V. THE IMPLEMENTING AGENCY .... ...... . .... . 41 Background ...41 The JIRAMA Act ...41 Organization ...42 Management and Staffing ...... .42 Training .. ......... ... .. .. 43 Accounts and Audit ..... . ..............43 Thb document hm a nstrkcd distribution md may b. mud by rOcipents only in the performance of thlr officia duti