Lemur Holdings has signed a memorandum of understanding (MOU) with Sinohydro Corp for the development of a coal-fired power plant in Madagascar.

Lemur Holdings has signed a memorandum of understanding (MOU) with Sinohydro Corp for the development of a coal-fired power plant in Madagascar, it has announced.

Lemur, a subsidiary of mining firm Beshveld Minerals, says it will work with the Chinese firm on developing the 60 MW Imaloto independent power plant (IPP) in southern Madagascar.

The two companies will develop feasibility studies, project implementation proposals, environmental studies and engineering, procurement and construction contracts for the project, which will be built alongside a proposed coal mine in the area.

The project also includes the construction of a 200 km transmission line, Lemur said in a statement. 

The companies added that the project would have an “immense positive social impact” on Madagascar. “As a major breakthrough for the energy sector of Madagascar, this project will help solve the problem of power shortage and contribute to local economic growth in the south of the country,” said Liu Kai, VP of Sinohydro.

Madagascar’s power utility Jirama is currently negotiating a power purchase agreement with Lemur for the offtake of electricity from the Imaloto project, according to local reports.