Turkey’s Aksa Energy establishes company in Africa to generate electricity for Madagascar

“Our company founded a Mauritius-based company, dubbed Aksaf Power Ltd., some 58.35 percent which is owned by Aksa Energy and the remaining 41.65 by a local partner, to establish a 120-MW heavy fuel oil [HFO] power plant in the Republic of Madagascar and to sell the generated power in a 20-year span in a secured manner,” said Aksa Energy to the Public Disclosure Platform (KAP). 

The new company will commence the project after the required advances and deposits are taken in line with a deal with Jirama, which is responsible for offering electricity and water services in Madagascar, according to the statement. 

“It is planned to start construction by the end of 2016 and begin to generate and sell power by the end of 2017,” noted the company, adding that the power plant was forecasted to make 700,000 MW/h of secured sales on an annual basis and on the U.S. dollar value. 

Jirama will provide all field works, fuel supply and license transactions, it noted. 

“In the construction of the power plant, the existing HFO power plant equipment in the portfolio of Aksa Energy will be used, minimizing the investment value,” said the company. 

“Our power plant, which will generate power in high capacity and on the U.S. dollar basis, will enable us to hedge our foreign exchange denominated debts through a natural mechanism and raise our profitability and sales volume,” added the company. 

This will be the company’s second power plant project in Africa after an ongoing project in Ghana, according to the statement.