EIB accelerating climate disaster recovery, priority clean energy and transport investment in Madagascar

Reconstruction of road and rail links in the Madagascan capital Antananarivo will be accelerated following the disbursement of EUR 16.4 million on October 29th by the European Investment Bank.

“The European Investment Bank is working closely with Madagascan and Team Europe partners to support the reconstruction of national road and rail links in Antananarivo. We welcome the progress made that has enabled EUR 16.4 million of high-impact financing to be disbursed in the last two months. This reflects the hard work of our partners at the RoadsAgency. The EIB has supported transformational investment across Madagascar over the last 50 years and we stand side by side with Madagascar to protect vulnerable communities from a changing climate.” said Ambroise Fayolle, European Investment Bank Vice President.

Roads sections in Madagascar were rehabilitated and repaired to both improve journey times and provide sustainable infrastructure. Works began at the end of 2018 following the initial EIB disbursements (now totalling EUR 30m) and was delivered in January.

Financing 100% of post-disaster reconstruction of strategic infrastructure

The financing, part of a EUR 40 million 18-year EIB loan to assist reconstruction agreed in 2017. This is supporting repairs to better protect strategic infrastructure from future flooding and adapt to a changing climate.

The EIB is exceptionally financing 100% of the reconstruction work given the climate disaster nature of the necessary rebuilding work. Concessional financing provided by the EIB is being supported by a EUR 2.7 million interest rate subsidy.

Additional project components of the Antananarivo transport reconstruction scheme are also being backed by grant funding provided by the European Union.

Accelerating clean energy and transport investment to benefit Madagascans

In recent months, the European Investment Bank and European Union have enabled transformational energy and transport investment to progress across Madagascar, with close to EUR 42m disbursed on four infrastructure projects.

Following the visit of EIB Vice-President Ambroise Fayolle to Antananarivo in January, advanced construction of the Rocade project has been supported by the first disbursement of EUR 11.8m of the EUR 28m EIB loan.

In July, the EIB disbursed the second tranche of EUR 11.4 million of a EUR 30 million loan to support expansion of the Jirama Andekaleka hydropower project and increase the generation of clean energy in the country.

The EIB also provided in September the first tranche of EUR 2 million of the grant of the European Union, to upgrade the RN6 and RN13 roads, after the 2.4m loan disbursed last year for emergency works. This project of EUR 235m, co-financed by the EU and the EIB will improve the country’s transport links, and in particular access to two ports of economic and industrial scope respectively in the North and South of Madagascar.

New investment to supply clean energy to Madagascan cities

A new loan of EUR 81,3m has been approved by the Bank for the financing of the electrical interconnexion between Antananarivo and Toamasina (PRIRTEM-1). The EIB will co-finance the construction of a 220 kV, 270 km-long overhead transmission line and related substations that will interconnect the currently isolated power systems of the capital and the main seaport of Toamasina, thereby supporting the integration of large hydropower plants being developed in both systems and significantly contributing to climate action.

The European Investment Bank is the world’s largest international public bank and has provided EUR 825 million for long-term investment across Madagascar since 1970.