Identifier
Created
Classification
Origin
07ANTANANARIVO881
2007-08-31 06:16:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Antananarivo
Cable title:  

ENERGY, THE FOUNDATION FOR DEVELOPMENT

Tags:  ENRG EPET PGOV PREL ECON MA 
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VZCZCXRO5272
OO RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHAN #0881 2430616
ZNR UUUUU ZZH
O 310616Z AUG 07
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0297
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC
UNCLAS ANTANANARIVO 000881 

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR AF/E, AF/FO
PARIS FOR D'ELIA
JOHANNESBURG FOR FCS

E.O. 12958: N/A
TAGS: ENRG EPET PGOV PREL ECON MA
SUBJECT: ENERGY, THE FOUNDATION FOR DEVELOPMENT

UNCLAS ANTANANARIVO 000881

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR AF/E, AF/FO
PARIS FOR D'ELIA
JOHANNESBURG FOR FCS

E.O. 12958: N/A
TAGS: ENRG EPET PGOV PREL ECON MA
SUBJECT: ENERGY, THE FOUNDATION FOR DEVELOPMENT


1. (SBU) SUMMARY: Energy Minister Ramiaramanana is pursuing
multiple partnerships to revitalize the state electric utility
company. He explained to the Ambassador August 30 his ambitious
plans to improve electricity supply in major coastal cities and in
Antananarivo. The Minister is also keen to seek opportunities in
several alternative energy technologies. END SUMMARY.


2. (SBU) In a cordial first meeting with the Ambassador, Minister of
Energy Patrick Ramiaramanana spoke enthusiastically about retooling
the state electric and water utility, JIRAMA, so that it may be the
foundation for the Madagascar Action Plan (MAP) for economic
development. The Minister reported that a new power station began
operation August 29 in the northern city of Diego Suarez, a region
with chronic brown-outs. He said this is the first new power
station construction since independence in 1960.


3. (SBU) Minister Ramiaramanana said the GOM has procured three new
generators from the U.S. company Cummins for the tourist area of
Nosy Be. He continued that power systems in Mahajunga, Tamatave,
and Tulear were being refurbished and reinforced to meet demand in
these key coastal cities. In the southern city of Fort Dauphin, the
Minister noted that the Rio Tinto / QMM mining concession includes a
provision for the company to provide power to the city. For the
capital, Antananarivo, the Minister reported that economic growth
and power demand had outstripped supply in recent years. He said
the Ministry will bring an additional 40 megawatts online in 2008.


4. (SBU) Noting that in his previous position as Mayor of
Antananarivo he served as Chairman of the Board of JIRAMA (a
position he said he still occupies),Ramiaramanana expressed great
pride in putting the state utility on track. He said the GOM is
pursuing Independent Power Provider (IPP) arrangements with various
partners to sell power to JIRAMA, phasing out the costly system in
which the utility rented equipment from suppliers. The Minister
confirmed his intention to maintain JIRAMA as a public company and
has no plan to privatize JIRAMA. "It is a question of national
pride," he said.


5. (SBU) Moving to rural electrification, Minister Ramiaramanana
seeks 40 small scale power generators to provide electricity to
Madagascar's second-tier cities. He also elaborated a plan, once
the above mentioned supply improvements are completed, to shift more
production towards alternative energy like wind, solar, and hydro.
Ramiaramanana, a chemist by training, also mentioned biofuel
opportunities in jatropha, sharing his plan to establish a research
center in Madagascar to be a world leader in this renewable energy
source.


6. (SBU) COMMENT: Inadequate power supply, load shedding, and
JIRAMA's historically poor performance have all been obstacles to
both economic growth and attracting investment to Madagascar. The
Minister's positive assessment and the emergence of some early
success stories (though admittedly only short-term fixes) give
reason to hope that these obstacles gradually are being overcome.
Additionally, his emphasis on small-scale IPPs -- rather than
seeking a massive overhaul or privatization of JIRAMA -- offers a
range of opportunities for relatively small investors. At the same
time, the power problem remains urgent and much is on the line, not
least the Minister's own future in the cabinet. Although JIRAMA and
the Minister are also responsible for water supply (another urgent
challenge),this topic did not surface in this meeting.

MARQUARDT