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Madagascar - Sahofika Hydro-Power Project – RAP Summary


Madagascar has one of the lowest electricity service ratios in the world, with most of the island’s population using wood as a source of energy. Electricity generation is largely dependent upon fossil fuels, and the Government has therefore identified increasing hydro-electric generation as one of the country’s priorities and private sector involvement as an avenue to do so without increasing the country already overwhelming debt.

The Sahofika project development was awarded to the consortium formed by companies Eiffage, Eranove, Themis and HIER, which agreed on 2 December, 2016 with the Ministry of Water, Energy and Hydrocarbons of Madagascar a Project agreement to design, finance, build, operate and maintain the Sahofika hydro-power project, further to a concession contract to be signed with the State. A Malagasy company has been established by the Consortium in this purpose, which is called Nouvelle Energie Hydroélectrique de l'Onive ("NEHO" or "Concessionaire").

The Project entails the physical displacement of 364 households (2,062 individuals) residing in the Project footprint, as well as the economic displacement of an additional 10 households (52 individuals). This Resettlement Action Plan (RAP) is submitted by the Concessionaire addresses these impacts in line with both Malagasy legal requirements and international standards, specifically those of the African Development Bank (AfDB) and of the International Finance Corporation (IFC). The RAP was prepared in the period July 2018 – May 2019 by Malagasy consulting firm Land Resources, supported by international resettlement consultant Frederic Giovannetti.

At this stage, this RAP addresses the dam and reservoir area in full detail (all socio-economic and asset surveys done, detailed budget available), while the linear components of the Project (road and transmission line) are addressed at a conceptual level, with surveys to be done later when the level of progress of technical design allows. It is not expected that the road and transmission line will entail any physical displacement or significant economic displacement.

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