Antananarivo, Madagascar – (African Boulevard News) – The Volobe dam public-private partnership in Madagascar has hit a roadblock, six months after the signing of concession and power purchase contracts. President Andry Rajoelina and his adviser are now pushing for a lower price per kWh, causing tensions and delays in the project’s progress.
The Volobe dam project, a crucial development for Madagascar’s electricity sector, was expected to bring much-needed power supply to the country. However, Rajoelina’s decision to short-circuit the public-private partnership has raised concerns among stakeholders and industry experts.
According to sources, President Rajoelina and his adviser have been advocating for a reduction in the price per kWh agreed upon in the contracts. Their argument hinges on the belief that a lower price would benefit the Malagasy population and alleviate the burden of electricity costs.
While the intention to prioritize the welfare of the citizens is commendable, critics argue that altering the terms of the contract at this stage could jeopardize the whole project. The Volobe dam’s public-private partnership was carefully structured to ensure the timely and efficient completion of the project.
Industry experts warn that renegotiating the price per kWh could not only lead to significant delays but also discourage future foreign investments in Madagascar’s infrastructure sector. Investors value stability and predictability when committing to long-term projects, and any sudden changes in contract terms are seen as a red flag.
One anonymous industry expert expressed concern over the potential consequences of President Rajoelina’s decision, stating, “If the government decides unilaterally to alter the agreed terms, it sends a message to the international community that Madagascar is not a reliable partner for investment. This could have long-term negative effects on the country’s economic development.”
The Volobe dam project holds great promise for Madagascar’s energy sector. It aims to increase the country’s power generation capacity and reduce its reliance on expensive imported electricity. Moreover, it is expected to create employment opportunities and stimulate economic growth.
However, with the current impasse caused by President Rajoelina’s short-circuiting of the public-private partnership, the future of the Volobe dam remains uncertain. The delays and uncertainties surrounding the project are discouraging to both local and international investors and could hinder Madagascar’s development goals.
As the situation unfolds, stakeholders are urging the government to prioritize dialogue and find a mutually beneficial solution that does not compromise the stability and progress of the Volobe dam project. It is crucial for Madagascar to showcase its commitment to honoring contractual obligations and attracting foreign investments in its pursuit of sustainable development.
Although the intentions behind seeking a lower price per kWh may be well-intentioned, it is essential to balance the interests of the population with the need for a stable investment environment. The Volobe dam project has the potential to uplift Madagascar’s energy sector and contribute to its overall development. It is now up to the government to navigate these challenges and ensure a successful outcome for the benefit of all stakeholders involved.
