By Peter Kanjere, contributor:
Electricity Supply Corporation of Malawi (Escom) has officially signed a $745 000 (K777 million) grant agreement with Swedfund International for the rehabilitation and implementation of two transmission lines in the Central and Northern regions.
Escom Director of Projects and Development Sinosi Maliano said the funds will enable the corporation to engage consultants to carry out an Environmental Social Impact Assessment (Esia) on the Eastern Backbone Project.
“It is a huge boost as now we have a written commitment that we can have the consultants since the money is ready,” he said.
Maliano signed the agreement on behalf of Escom Chief Executive Officer Kamkwamba Kumwenda on Wednesday.
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He said signing the grant agreement officially was an important step towards project implementation as a similar ceremony, which took place last November in Blantyre, was symbolic.
Last year, Swedfund International Manager Johan Bostrom Heiskala signed the agreement alongside Kumwenda.
At the event, Bostrom said they made the commitment since energy is one of the main drivers of inclusive and sustainable growth and job creation.
He said lack of access to reliable power is currently preventing Malawi from achieving its full economic growth and development potential.
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Kumwenda said the project will provide Malawi’s private sector with a more secure power supply which, in turn, can create an environment where business development can accelerate.
He said the grant has come at a right time when the company is planning to develop and strengthen the transmission and distribution of infrastructure in tandem with the country’s electricity generation plans.
The two lines are the Eastern Backbone from Nkhoma- Nanjoka-Nkhotakota to Chintheche in Nkhata Bay and the Nkhotakota- Chinyama-Kanyika transmission line.
The scope of the project is to construct a new 51-kilometre, 132 kilovolt (kV) circuit line from Nkhoma Substation to Nanjoka Substation in Salima, which also includes upgrading Nanjoka Substation, among others.
Swedfund is Sweden’s Development Finance Institution for sustainable investments in developing countries.
