Madagascar Skips Tender for Power Equipment as Russia Ties Grow

Madagascar’s government gave the country’s power and water utility permission to flout usual tender procedures and buy diesel generators directly from a Russian company as ties between the island and Moscow grow.

The government decree, adopted Oct. 6, allows the utility known as Jirama to buy 18 generators directly from a company it identifies as Russia’s Malmekhservice. In a statement, the energy ministry gave no details of the value of the transaction or the size of the generators.

Russia has sought to strengthen relations with Madagascar since a coup on the island in October last year, donating military equipment to the company and soldiers to protect the new president, Michael Randrianirina.

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Russia and Madagascar have held talks about building fuel-storage facilities on the island, while Moscow has established a cultural center there. Randrianirina also broke with tradition, meeting with Russian President Vladimir Putin on his first official overseas trip, rather than traveling to former colonial power France.

Power shortages have plagued Madagascar for years, and they were among triggers for popular protests that led to the coup. The new government has acted to secure fuel supplies for its utility by ending a 25-year arrangement where private companies imported fuel and bought diesel for Jirama directly from China. Still, Jirama is paying more to produce electricity than it can sell it for.

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