Status: Approved investment
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Why disclosure?

FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more

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The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

Madagascar Hydro Holdco LTD is a platform company incorporated in Mauritius for the acquisition and development of a portfolio of several run-of-river hydroelectric projects in Madagascar. FMO is investing in conjunction with the Africa Renewable Energy Fund, a fund focussed exclusively on investments in renewable energy projects in Sub-Saharan Africa.

What is our funding objective?

The objective of FMO’s financing is to fund the development, construction, and operation of a portfolio of run-of-river hydroelectric projects in Madagascar.

Why do we fund this investment?

The project has high developmental impact, as it will provide stable, sustainably priced base-load renewable energy capacity to a country with low electrification rates and high reliance on fossil-fuel energy. The project will provide economic growth through job creation and other multipliers.

What is the Environmental and Social categorization rationale?

Category A investment due to magnitude of specifically PS5 and PS6 related impacts in the portfolio. PS1-6 applicable for all assets in the platform, PS8 for one asset (traditional palace): no indigenous peoples. All assets render economic displacement, whilst one also triggers physical displacement: compensation and livelihood restoration activities will need to be aligned with international best practices. The projects are not situated in critical habitats or protected areas however biodiversity impact management is regarded key due to the nature of the assets (HPPs) and the biodiverse ecosystems of the Madagascan regions. FMO DD also focuses on the needs to maintain/enhance societal embedding of the assets in their specific local societal contexts.

More investments

Date Total FMO financing
9/7/2020 EUR 0.04 MLN
12/10/2019 USD 7.28 MLN
Publication date
Effective date
Total FMO financing
USD 10.92 MLN
Building Prospects
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)