PROJECTS
JIRAMA Power Sector Turnaround, Madagascar
The problem
JIRAMA, the national utility in Madagascar, was indebted and had lost US$77 million in 2018, even after an operating subsidy of US$84 million. Only 23 percent of the population had access to electricity, but JIRAMA’s losses meant it could not invest to expand service. Despite Madagascar’s’ abundant hydro resources, the utility relied on diesel and heavy-fuel oil generation, as it lacked funds to invest in hydropower plants.
How we helped
Castalia developed a turnaround plan for JIRAMA. We benchmarked the utility on key indicators to diagnose causes of the poor performance. We identified areas where performance improvements were possible; built a financial model to simulate gains from various improvement strategies; and recommended a prioritized mix of operating efficiency gains, investment in lower cost renewable generation, and closing the funding gap through transition subsidies and gradual tariff reform.
Impact
The plan shows how JIRAMA can save an average of US$98 million annually, improve quality of service, and close its funding gap by the end of 2025. The reforms would also allow JIRAMA to procure hydropower, which would then lead to further cost savings of US$135 million over 10 years.
How can we help you?
How can we help you?
WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America
SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia
AUCKLAND
+64 (4) 913 2800
Sinclair House, 3 Glenside Crescent
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (0)1 85 64 10 22
3B Rue Taylor
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-121
Colombia
Thinking for a better world.
WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America
SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia
AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia
Thinking for a better world.