Ravenna, 9 April 2018 - The CDP Group’s export and internationalisation hub, formed by SACE and SIMEST, is supporting the development in Madagascar of Tozzi Green, a Ravenna-based company active in the renewable energy sector.
The operation represents a double transaction for the hub, with SIMEST acquiring 49% of the Malagasy subsidiary, for an investment of €6.5 million, and with SACE guaranteeing a €10 million loan from Crédit Agricole Cariparma to Tozzi Green.
The new funds resources will be used to build 22 megawatt run-of-river hydroelectric plant, which by 2019 will supply power to some 200,000 families in Antananarivo, the capital of Madagascar.
“We are pleased with the project and the synergy with SACE SIMEST”, said Tozzi Green CEO Andrea Tozzi. “It is important to be able to count on partnerships like this to develop major green projects around the world.”
This operation has consolidated the relationship between the Romagna company and the export and internationalisation hub of the CDP Group, which has supported the company's international development plans in the past: in 2015, SACE guaranteed the sureties necessary to acquire an important order in Peru.
Tozzi Green, a pioneer in the generation of renewable energy, has its roots in the early years of the 1900s in Romagna in Casola Valsenio, where the Tozzi family, as the manager of a small hydroelectric power plant that supplied the energy needs of the entire town, could be called true forerunner and precursor of the green economy.
Beginning in the 1990s, the Tozzi family decided to focus on renewable energy following the liberalisation of the electricity market in Italy, founding Tozzi Green, a company specialising in products, services and projects for the development of plants and the generation of energy from renewable sources.
Tozzi Green and the Mahitsy hydroelectric plant project
In mid-November of last year at Mahitsy, a town about fifty kilometres from the capital Antananarivo, more than three thousand people attended the inauguration of the Farahantsana bridge, which will connect the municipalities of Ampanotokana and Ambohimasina, which had previously been isolated by the Ikopa river.
The ceremony saw the participation of the Ministers of Public Works and Energy alongside the President of the Republic Hery Rajaonarimampianina, in addition to Tozzi Green's Chairman, Franco Tozzi.
The infrastructure, essential to begin work on the construction of a hydroelectric plant that will produce 22 megawatts of electricity for the Jirama grid, is the outcome of a public-private partnership involving Malagasy government institutions and Tozzi Green. The construction of the power plant, in addition to the generation of electricity, will also mean the creation of about 300 jobs for the local population.
Antananarivo, the capital of Madagascar, has 3 million inhabitants and a recovering economy that needs power and electrical infrastructure to meet the growing needs of the population.
Thanks to collaboration with the international community and international financial institutions - first and foremost the International Monetary Fund - Madagascar has partly solved the problems that the country had experienced from 2009 to 2014, weakened by the interruption of funding from abroad (before 2009 foreign aid financed about 50% of the state budget) and the slowdown in key sectors (mining, agriculture, tourism).
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SACE | Ufficio Stampa
T. +39 06 6736888
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T. +39 06 68635777
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SACE, a wholly-owned subsidiary of Cassa Depositi e Prestiti, offers export credit services, credit insurance, protection of foreign investments, financial guarantees, bonding, and factoring services. With €87 billion in transactions insured in 198 countries, it supports the competitiveness of companies in Italy and abroad, ensuring more stable cash flows and transforming the default risk of companies into development opportunities.
SIMEST, 76%-owned by SACE, with leading Italian banks and trade associations among its other investors, supports companies throughout their entire international development process, providing soft loans for internationalisation, export credit support and equity investments. Together, SACE and SIMEST form the export and internationalisation hub of the CDP Group.
TOZZI GREEN operates in the renewables sector in Italy and abroad, promoting and developing generation plants from the construction stage to subsequent operation. Over the years, it has built more than 700 MW of renewables capacity, of which 460 MW of wind power.