Publish Date : 28-Jan-2020
The Vice-President of the European Investment Bank, Ambroise Fayolle, signed today with the Minister of Finance Richard Randriamandrato, in the presence of President Andry Rajoelina, a loan of 35 million euros granted to the Republic of Madagascar thus launching the Jirama Water III project. This funding is supplemented by a donation from the European Union through the Investment Platform for Africa (PIA).
Led by Jiro sy Rano Malagasy (JIRAMA), the 100% public water and electricity company, the project consists of making priority investments for the drinking water supply system of the Urban Municipality of Antananarivo . These investments concern as much the production capacity as the transport and distribution of drinking water on the scale of the capital and its periphery.
The total amount of the investment is 74 million euros, in which the EIB contributes 47%. It could not have been launched without the strong support of the European Commission, which will provide 30 million euros, including 27 million in the form of an investment donation and 3 million intended for technical assistance. The rest of the funding will come from the Republic of Madagascar (6.5 million euros) and the non-profit organization Water & Sanitation for the Urban Poor (WSUP) which has been actively involved with Jirama for more 10 years to improve the performance of its water service delivery and which provided valuable support to prepare the project and provide a donation of 2.5 million euros.
This project is in line with the EU objectives for the country. It is thus specifically mentioned in the EU National Indicative Program (NIP) for Madagascar for the period 2014-2020 (11th EDF) and is distinguished by its high impact on public health, the environment, gender and reduction some inequalities. It thus contributes to 5 of the "Sustainable Development Goals" (SDGs): "Clean water and sanitation", "No poverty", "Good health and well-being", "Gender equality" and "Sustainable cities and communities" ". It is also in line with the EIB's guidelines for loans to the water sector and eligible for the Sustainability Awareness Bonds (SABs), as part of its contribution to improving access to drinking water.
The positive impact of the project on gender will be reflected in the reduction of the arduousness and the time of access to drinking water, a chore that usually falls on the women and girls of the households. This will indirectly promote the education of young girls and free up time for women who can devote it to other tasks, including income-generating activities.
Since 2014, the EIB has increased investments in Madagascar, in the road and energy sectors. It thus finances, jointly with AFD and the EU the development of the peri-urban network of Antananarivo (Rocade project), 100% the reconstruction of infrastructure following the particularly devastating cyclones of 2015, jointly with the EU the modernization of the road network of Madagascar (RN6 and RN13) and finally the fourth turbine of the JIRAMA Andekaleka Hydro Expansion project. These projects represented 208.6 million euros in loans having been supported by grants from the European Union up to 120 million euros.
The EIB should conduct in 2020 the evaluation of the energy interconnection project between Antananarivo and Toamasina PRIRTEM-1 and could participate in the financing from the African Development Bank and the EU.
The Bank of the European Union is pleased to be able to support Madagascar in the financing of many development projects crucial for the country, and wishes to become more involved, always alongside its partners, in infrastructure projects (roads, hydroelectric or energy) with a significant level of fight against climate change, in particular in terms of adaptation, "said EIB Vice-President Ambroise Fayolle.
Go to previous page
