Dominovas Energy Corporation has concluded a business trip to Madagascar, Africa, which by invitation specifically and purposefully coincided with the Francophonie Summit 2016 event that was held last week in the island nation’s capital city Antananarivo, Madagascar. Neal Allen, Dominovas Energy Chairman and CEO continued discussions with the government for the deployment of a nation-changing 650MW power plant for Madagascar. This announcement, closely follows Dominovas Energy’s having recently filed an 8K chronicling the execution of a reciprocal letter of Interest (LOI) with the Government of Madagascar for the deployment of a baseload power supply.
The President of Madagascar has an unequivocal resolve to end the energy deficit of the country and is a primary objective. As such, this 650MWs of base-load power will create a substantial baseload of electricity generation that, heretofore, has not existed for the nation. It is anticipated that Dominovas Energy and the Government of Madagascar will next sign a binding Memorandum of Agreement that defines the deliverables and responsibilities of both parties, as it pertains to the installation, deployment, and operation of the 650MW power plant within Dominovas Energy’s BOOTT (Build, Own, Operate, Train, Transfer) construct.
Dominovas Energy officials were also invited to participate in significant events and meetings that took place during the Francophonie Summit 2016 and they were hosted by the newly created agency AMDP (Agence Malagasy de Développement économique et de Promotion des Entreprises), as headed by the Directeur Général Mr. Hugues Ratsiferana. AMDP was envisioned by the President and was created early September of this year to specifically spur and accelerate economic development and investment within Madagascar. One of the first objectives of the agency is to lay a foundation for primary baseload power for the country. Dominovas Energy is working hand-in-hand with government officials and key members of AMDP to provide this baseload power from the proposed 650MW plant which will allow for large scale critical economic development on Madagascar.
In addition to meeting Madagascar’s president Hery Rajaonarimampianina at the inauguration of the “Industry Salon of Madagascar,” productive meetings were held with the Minister of Energy Lieutenant-General Herilanto Raveloharison, as well as with the Directeur Général Délégué of the AMDP Mr. Joana Ravaloson.
Neal Allen, CEO and Chairman of Dominovas Energy, noted, “I applaud the President’s leadership, vision and commitment to the future of Madagascar. Several countries were considered by Dominovas Energy as a possible ‘ground zero’ for this power plant, but Madagascar has exhibited an unyielding commitment to this project from the initial introduction of the opportunity and has put in place exceptionally competent people to shepherd this project. From the beginning, President Rajaonarimampianina recognized the significance of this project and further, if successfully deployed, its paramount importance for Madagascar’s short and long term national development. We are quite excited to have converted a well-structured project idea into a material project that will literally light this island nation. After visiting the island earlier this year, and with several subsequent visits prior to last week’s visit, Dominovas Energy worked relentlessly to development a sound and comprehensive energy solution for Madagascar. We jointly recognize that a legacy project of this nature and magnitude is clearly a once in a lifetime opportunity.”
The power project’s spillover effect from a macroeconomic point starts with the significant augmentation of Madagascar’s present energy capacity that will serve to not only “electrify” its population, but also this electricity will serve as the ignition for many of the mining, manufacturing, and resort enterprises as necessary for them to act as force-multipliers and major employers that will energize and support Madagascar’s economy as a whole. These industries and others, will be natural off-takers for a large portion of the electricity produced. Madagascar is experiencing, first-hand, the effect of suppressed demand of power. Studies have shown that corporations and people will access, use, and pay for power if it is available, sustainable, and reliable. Madagascar’s lack of sufficient base-load power has constrained and significantly limited the country’s growth potential. Ultimately, the anticipated increase in power production and the revival of the manufacturing and mining sectors will also directly positively affect the service and hospitality industries. Job creation in excess of 3,000 people during the construction period of the plant is expected, along with a significant number of people to be employed as ongoing operation of the plant will be necessary. With an anticipated investment by Dominovas Energy of between US$1.2 billion and US$1.5 billion, Madagascar’s Gross Domestic Product (GDP) could very well double within the next 3-5 years. Madagascar should anticipate that because of this substantial investment in the plant that subsequent major investments will follow from the manufacturing, hospitality, mining, and agriculture sectors.
Neal Allen, CEO and Chairman of Dominovas Energy, further noted, “This project is of paramount importance for Madagascar’s national development. Dominovas Energy’s investment will support a multitude of opportunities moving Madagascar from its current modality, to a substantial global economic competitor. We are honored and equally excited to have the privilege to begin this journey with Madagascar.”
During the coming months, Dominovas Energy will perfect all feasibility studies as well as execute all documents required for successful financial close during 2017. It will also subsequently structure the project in concert with the Government of Madagascar and a “best in class” EPC. With the requisite funding and financial close anticipated with the next several months, Dominovas Energy will immediately commence the building of the power plant and will support the expansion of the footprint of the present power transmission network throughout the country, all concomitant with the plant installation.