At a signing ceremony held today, the Government of Madagascar and the African Trade Insurance Agency (ATI) signed an agreement that allows Independent Power Producers (IPPs) in the country to now access the Regional Liquidity Support Facility (RLSF).
RLSF is a joint initiative of ATI, and KfW with funding from the German Federal Ministry for Economic Cooperation and Development (BMZ) with an initial capacity of USD 63.2 million.
RLSF will protect the IPPs in Madagascar against the risk of delayed payments by the public off-taker, the National Water and Electricity Company of Madagascar JIRAMA.
Madagascar becomes the 6th country to sign onto RLSF joining Benin, Burundi, Malawi, Uganda and Zambia.
RLSF is an important tool in supporting the development of energy projects that will help the government achieve its strategic objectives in line with the Energy Performance Contract.