Madagascar Oil encroaches on Axian's turf
Madagascar Oil has won its first contract to supply fuel to electricity company Jirama, which has previously sourced almost exclusively from Axian.
Antananarivo's anti-corruption unit has secured the arrest of several former top managers at the national electricity supplier Jirama, including the man whom its current CEO Vonjy Andriamanga wanted to appoint as his number two. But the affair has also drawn in the consortium SMTP owned by the industrialist Danil Ismaël.
Even though works are set to start in the coming months, President Andry Rajoelina is backing the Eiffage-led consortium into a corner, demanding negotiations be reopened into the price of electricity that the Sahofika dam will generate.
In the hope of sorting out its unsustainable financial situation (ION 1487), Jirama is seeking to revise its contracts with its suppliers (ION 1493). But this has led to a standoff between the national electricity supplier and Jovena over the [.