Turkey's Aksa to build 120MW power plant in Madagascar

Turkey's Aksa Energy announced plans Monday to construct a 120 megawatt fuel-oil electricity generation plant in Madagascar.

To realize the project, Aksa Energy partnered with a local energy firm operating in the country and located in Mauritius to form a new company.

The newly-founded Aksaf Power Ltd. will provide electricity for 20 years to the country, according to the announcement made in Turkey's Public Disclosure Platform.

Aksa Energy will hold 58.35 percent of the shares of the new company while the other 41.65 percent will belong to the local partner; Jiro Sy Rano Malagasy (Jirama).

In accordance with the memorandum of understanding, construction of the plant will start once both companies in the partnership receive advanced payment and have completed the prerequisite guarantees for the project.

Aksaf Power Ltd. is expected to sell around 700 thousand megawatt hours of electricity annually.

"The construction is expected to begin in the last quarter of 2016 while the electricity selling process will start in 2017," the statement read.

Aksa Energy will provide the technical equipment for the project.

Madagascar, located in the southeast coast of Africa, has a population of 22.92 million, according to World Bank data.

The country is heavily reliant on biomass for around 80 percent of its overall energy needs. Mainly firewood at 68 percent, charcoal with 10 percent and other biomass at 2 percent make up the biomass energy mix. Additional sources come from petrol at 17 percent for transport, 2 percent from hydropower and diesel power plants, and 1 percent from coal.