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.

The client

The World Bank

Our team

Gianmarco Servetti

Gianmarco Servetti

Practice Leader
Laurie Hervot

Laurie Hervot

Analyst

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
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.

Castalia-logo-negative-2col
PROJECTS          NEWS         CONTACT
© Copyright 2019 Castalia. All rights reserved.  Terms | Privacy | Credits | Sitemap

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.

Castalia-logo-negative-2col
PROJECTS          NEWS         CONTACT
© Copyright 2019 Castalia. All rights reserved.
Terms | Privacy | Credits | Sitemap