By Kingsley Jassi:
Malawi’s aging hydro-power generating plants have posed a financing uphill of over $118 million for rehabilitation works to restore efficiency, Times Business has learnt.
The Africa Development Bank (AfDB) has already pumped in about $23.5 million while European Investment Bank (EIB) will also make a contribution towards the intervention.
AfDB signed a financing agreement with the Ministry of Finance, Economic Planning and Decentralisation on Wednesday for the rehabilitation of Kapichira hydro-power plant, whose repairs are now unsustainable, having been damaged by cyclones since its commissioning in their year 2000.
- Advertisement -
AfDB Country Manager Macmillan Anyanwu was worried over Malawi’s power deficit, estimated at over 640 megawatts, which, he said, would affect industrialisation efforts, hence the interest to come in with assistance.
- Advertisement -
“AfDB remains committed to supporting the energy sector in Malawi. The bank will continue to work with the Government of Malawi on the next portfolio of projects that include the 132kV Eastern Backbone Transmission System and Peri-Urban electrification projects among others,” Anyanwu said.
Finance Minister Joseph Mwanamvekha said at the signing ceremony that the government was talking to more development partners to fill in the financing deficit of the rehabilitation works.
“We are discussing [the issue] with AfDB for further financing and we are also talking to other development partners to ensure that we raise all the money,” he said.
With the national target to increase access to power to over 70 percent and the emerging mining sector, the country is racing against the increasing demand for energy, targeting 1500 megawatts.
- Advertisement -
Mwanamvekha said the immediate goal was to increase power generation to at least 1,000 megawatts to deal with the current, and emerging, demand before further investments are made.
