MADAGASCAR HYDRO HOLDCO LIMITEDStatus: Approved investment
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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.
|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)