Madagascar - Energy Sector Reform Support Programme

Project Summary

Approval Date	25 Nov 2016
Signature Date	25 Nov 2016
Planned Completion Date	31 Dec 2017
Last Disbursement Planned Date	31 Dec 2017
Sovereign / Non-Sovereign	Sovereign
Sector	Power
DAC Sector Code	23220
Commitment	U.A 13,770,000
Status	Completion

Project General Description

The Programme to Support Energy Sector Reform (PARSE) in Madagascar is the first in a series of programmes that will support the strengthening of the energy sector as part of the Bank's intervention strategy for Madagascar, covering the period 2017 - 2021. The programme will support structural reforms to improve electricity supply, which will benefit vulnerable groups who do not have the financial resources to acquire back-up generators to be supplied with electricity during power outages. This program has two components: (i) the improvement of JIRAMA's governance framework and financial management; and (ii) the improvement of JIRAMA's production and quality of service. As a budget support operation, the implementation of the programme's reforms will provide the State with the necessary budgetary space to improve the provision of essential social services to the population, particularly in hospitals, schools and businesses. This will have a positive impact on the quality of health and education of the population and on job creation.

Project Objectives

The main objective of PARSE is to contribute to the elimination of constraints to the development of the electricity sub-sector in Madagascar, while creating favourable conditions for investment and inclusive growth. The specific objectives are as follows: (i) to contribute to the improvement of JIRAMA's performance (governance and financial management); and (ii) to improve the efficiency of JIRAMA production and service quality.

Beneficiaries

The direct beneficiary of the programme is JIRAMA. Indirect beneficiaries are people served with better quality electricity: households, whose living conditions will be improved, and socio-economic operators, whose activities will be more profitable. The final beneficiary of the programme is the whole population, not only the 15% of the population who have access to electricity, but also those who, thanks to improved services, could be connected to the grid.

Participating Organization

Funding

African Development Fund

Implementing

Ministry of Finance and Budget (MFB)

Information

IATI identifier	46002-P-MG-F00-002
Last Update	06 Feb 2023

Export

Contact Details

Name	UMUBYEYI Angelique
Email	a.n.umubyeyi@afdb.org

Geographic Location

Country	Madagascar

Coordinates	Location Name
-20 47	Madagascar

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	Project Type Interventions

Commitments

U.A 13,770,000

African Development Fund

U.A 13,770,000

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Evaluation Report	fr	PN10787 SR FR
Project Completion Report	fr	PR10860 SR FR
Appraisal report	fr	Madagascar–RE- Programme d’appui à la réforme du secteur de l’énergie P...
Appraisal report	en	Madagascar –AR- Energy Sector Reform Support Programme PARSE
Project Completion Report	en	viewer
Project Completion Report	fr	viewer

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
GDP growth rate	%	2016	4,5	2018	4,2
Equivalent Outage Time (EOT)	Hour/Year	2016	500	2018	500
Increase in National Electricity and Water Company of Madagascar (JIRAMA)’s recovery rate	%	2016	60	2018	65
Reduced connection time for new electricity subscribers (this indicator is part of the performance contract)	Day	2016	350	2018	350
Improve the company’s governance and financial reorganization	MGA million	2016	250	2018	450
Availability rate of production teams	%	2016	75	2018	66
Production cost per kWh	MGA/Kwh	2016	670	2018	909
New JIRAMA organisation chart adopted and leaders recruited following a call for applications	None	2016	Adoption in Nov 2016 by JIRAMA’s Board of Directors of a new JIRAMA organization chart. 100% of managers recruited by call for applications in 2017	2018	JIRAMA's current organisation chart is inefficient (especially as concernscommercial management)
The Decree on the fight against electricity sub-sector fraud is revised and adopted	None	2016	Adoption in 2016 by the Council of Ministers of a Decree to strengthenthe fight againstelectricity subsectorfraud	2018	The system of fighting electricity sub-sector fraud is inefficient
Performance contract between the State and JIRAMA established	None	2016	Signing of a performance contract between the State and JIRAMAin 2017	2018	Absence of performance contract between the State and JIRAMA
Action plan for the implementation of the recommendations of the audit report on JIRAMA’s contracts management is adopted and implemented	None	2016	Adoption of the action plan by JIRAMA’s Board of Directorsin 2016and implementation of 80% of the recommendations of the audit report on the management of JIRAMA’s contracts in 2017	2018	Recommendations of the audit report on the management of JIRAMA’s contracts are not implemented
Conversion of operating mode of thermal generators from diesel to fuel oilis conducted and operational	None	2016	80 MWof installed capacity converted from diesel to fuel oil in 2017	2018	0 MW of capacity converted in 2015
Draft revised electricity sub-sector law, including the promotion of renewable energies, adopted	None	2016	Adoption by the Council of Ministers, in 2017, of a draft electricity sub-sector law	2018	The current electricity sub-sector law is ill-adapted
JIRAMA’s fuel security stock constituted for 15 days	None	2016	The security stock to ensure continuity of service for 15 days was not constituted by JIRAMA because the company does not as yet have the physical logistic capabilities. Its current capacity can only store up to 4 days of reserves	2018	No security stock to ensure generator operation
JIRAMA’s production plants preventive maintenance programme adopted and implemented	None	2016	Preventive maintenance programme preparedin 2016, implemented and deployed all over the company in 2017	2018	Inexistence of a preventive maintenance programme for JIRAMA’s thermal park