The Private Public Partnership Commission (PPPC) has said remarkable progress has been achieved on the Mpatamanga Hydro Power Project since the government of Malawi, IFC, Scatec and EDF signed a binding commercial agreement to undertake the co-development of the 350 megawatt Mpatamanga Hydropower Project on September 6 last year.
In an interview, PPPC Chief Executive Officer Patrick Kabambe said since the signing of the agreement, a project company, Mpatamanga Hydro Power Ltd, was incorporated and that it is operational with a full time staff complement of 24.
Kabambe said the company will have 55 percent shareholding for EDF/Scatec, 15 percent IFC while the Malawi Government will have 30 percent stake through the Energy Generation Company (Egenco).
“The design freeze was attained in February this year, meaning that an agreement by all parties has been reached in terms of the design of the infrastructure, namely dams, powerhouse and distribution.
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“Currently work is ongoing to complete geotechnical studies which will be a key input in the finer design and essential for bidding for construction companies. The geotechnical studies are expected to be completed by October,” Kabambe said.
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He added that also on-going are environmental and social studies, which are expected to be completed by end of this year or early next year.
“Once these studies are completed, the tendering for construction will start, most likely next year.
In the meantime, negotiations for a power purchase agreement to be signed by the Project Company and Escom are at a final stage,” Kabambe said.
Located on the Shire River, the 361mw facility is expected to be a first-of-its-kind in Malawi.
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The generation facility will be composed of two plants—a 309mw peaking plant and a 52mw downstream plant.
The 309mw plant with its reservoir storage is designed to provide much needed energy during peak demand hours of the day and overall grid stability with its ability to ramp up or down production to meet actual demand.
Speaking during the signing ceremony last year, Energy Minister Ibrahim Matola said the facility will not only double the installed capacity of hydropower in Malawi, but also improve power supply security, provide opportunities for increased renewable energy generation capacity in the country and contribute to controlling the flow of the Shire River downstream of the power plant.
Scatec Chief Executive Officer Terje Pilskog said Malawi will receive a significant investment into its power sector, which in turn will stand to benefit a major portion of the nation’s population.
“We look forward to reaching further development milestones for this project – and contributing to Africa’s renewable energy journey,” he said.
On his part, IFC Regional Director for Eastern Africa Jumoke Jagun-Dokunmu said his organisation supports the Government of Malawi’s goal to accelerate access to affordable clean energy.
“The Mpatamanga hydropower plant has the potential to grow Malawi’s electricity infrastructure and connect thousands of rural and remote households while also spurring green, inclusive, and resilient growth in the country,” Jagun-Dokunmu said.
