Jovena, Africa50, SN Power and Colas have signed an agreement to develop the Volobe hydropower plant in Madagascar.
The project entails the construction and operation of a 120 MW hydropower plant on the Ivondro river, 40 kilometers from Toamasina, to be operated under a 35-year concession. It also includes the construction of a transmission line, refurbishment of the access road and infrastructure for the neighbouring villages.
Under the terms of the agreement, partners agree to co-develop the hydropower plant by acquiring equity in Compagnie Générale d’Hydroélectricité de Volobe (CGHV), the project manager. Following this transaction, the shareholding of CGHV will be comprised of Jovena (40%), Africa50 (25%), SN Power (25%) and Colas (10%).
Jovena, a leading local industrial player, will provide institutional support while Africa50, the pan-African infrastructure investment platform, will bring its project development and finance expertise on board; SN Power, a leading player in hydropower infrastructure, will offer its technical and operational know-how; and Colas, its expertise as a major infrastructure construction company operating in Madagascar.
Herbert Smith Freehills has advised Africa50 with a team composed of Christopher Theris, partner, Laurence Vincent, of counsel and Alexandre de Chezelles, associate, on corporate matters, Christophe Lefort, partner and Erwann Nicot, associate, on projects aspects, and Emma Rohsler, partner, on labour law matters.