Signature of Concession Agreement and PPA Term Sheets

Antananarivo, July 5, 2018 - The term sheets of the Sahofika hydroelectric project's concession and power purchase agreements were signed on Thursday, July 5 by the Minister of Energy and Hydrocarbons, the CEO of JIRAMA and representatives of the consortium. A very important milestone to confirm the commitment of all parties, and ultimately lead to a formal concession agreement in the coming months. These term sheets set out the main principles of cooperation between the State, JIRAMA and the project sponsors and will serve as a basis for future negotiations. Lantoniaina Rasoloelison, Minister of Energy and Hydrocarbons, pointed out that this project will lead to the gradual switch from thermal power generagtion to renewable sources. It is also in line with the new Energy Policy aimed at diversifying the country's energy mix. "The production from the Sahofika Power Plant will improve JIRAMA's financial governance and reduce the national company's fuel costs by approximately USD 500 million in 3 years."