Under the terms of the agreement, Symbion Power will develop seven new power plants in phases, which will use biomass, solar and heavy fuel oil as primary fuel sources.
Planned to be built in Tsimiroro, Mahajanga, Nosy Boraha, Nosy Be, Antsiranana and Toamasina, the power projects are expected to contribute to the economic growth in Madagascar.
A 10MW solar power plant and one 5MW biomass plant will be built in the city of Mahajanga while additional biomass power plants will be strategically located at sites on the east coast.
The company will build an 116MW heavy fuel oil plant in Tsimiroro region.
As part of the deal, Symbion will partner with local investor Vision Madagascar (ViMa) to create joint company Symbion Madagascar to undertake development of the power plants.
Symbion CEO Paul Hinks said: "President Hery Rajaonarimampianina has embarked on an ambitious program to bring electricity to his people and to reduce the costs of the small amount of power that exists there today.
"The new developments by Symbion will save the government hundreds of millions of dollars and allow them to utilize those savings for other budgetary requirements."
Madagascar President Hery Rajaonarimampianina said: "The work they will do here will create thousands of jobs and improve the state of our economy because of the huge fuel cost savings we will realize.
"The Malagasy people will see the direct benefits of these investments over the next one to three years."
