Sunday, April 11, 2021
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Editors Pick

Malawi steps up gear to import power

by Golden Matonga
07/12/2017
in Editors Pick, National News
3 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

 

Malawi is set to finalise paperwork with potential financiers to facilitate purchase of power through interconnection with Mozambique and Zambia national grids in a bid to ease prolonged electricity supply that threatens to ground the economy to a standstill.

RelatedHeadlines

Judges’ bribery case ruling on April 15

Chikondi Chijozi: New Malawi Human Rights Commissioner

Industrial disputes choke IRC

European Union (EU) head of delegation Marchel Gerrmann and Minister of Finance, Economic Planning and Development Goodall Gondwe separately indicated yesterday the financing agreement for the deal will be finalised early next year.

Gondwe said the EU will provide a 20 million euro grant while the World Bank will disburse $3 million for the project.

Goodall Gondwe | The Nation Online
Gondwe: It will end the crisis

On costs, the Minister of Finance said the final cost agreement was yet to be signed, but preliminary assessments indicate that the project was much cheaper in comparison to the procurement and running of the fuel-powered generators recently procured in a desperate bid to add about 70MW to the national grid.

Said Gondwe: “The amount of power we will access is almost limitless and will quickly end the crisis. In terms of cost comparisons, the interconnector is a much cheaper venture than the generators which come with a huge fuel cost.”

Malawi is facing acute power supply challenges with hydro-electric generation capacity reduced to around 150MW from installed capacity of 351MW and peak demand of 350MW due to reduced water levels in Lake Malawi and its sole outlet, Shire River where over 90 percent of electricity is produced.

Gerrmann broke the news of the pending agreement on Tuesday during a ceremony in Lilongwe marking the EU-Africa Summit. He said the agreement was a response to the current crisis.

In October 2016, the Electricity Supply Corporation of Malawi (Escom) indicated that it was turning to Mozambique as an alternative source of energy through an interconnection project set to materialise in 2020.

Escom said the project would involve construction of a 210-kilometere (km) 400 kilovolts (kV) power transmission line from Matambo Substation in Tete, Mozambique, to Phombeya Substation in Balaka.

In an interview with The Nation at the time, Escom mentioned project financiers as including the Norwegian Trust Fund, a fund of the Government of Norway but managed by the World Bank; a pool of financiers comprising the World Bank, KfW—a development bank owned by the German Government—and the European Investment Bank (EIB).

The project was estimated to cost $140 million.

The revival of the power interconnection project comes after a similar deal was rejected by the Bingu administration reportedly due to cost implications.

In 2007, the World Bank approved a $93 million line of credit for the construction of a power link between Malawi and Mozambique. Mozambique’s share of the credit was $45 million.

Despite being initiated in 2007 by Bingu without Parliament approval, the agreement virtually collapsed after Parliament refused to approve the Loan Authorisation Bill in 2009, arguing the initial costs outweighed the benefits as it would require Malawi to pay $480 000 monthly to tap power from Mozambique.

In 2010, the World Bank cancelled the loan, citing delayed approval by the Malawi Parliament.

However, in 2012, the Joyce Banda administration made a U-turn, arguing the interconnection would assist Malawi resolve power supply problems. Thus, the project was resuscitated in 2013 by Malawi and Mozambique and financing was secured in 2014 from the Norwegian Trust Fund. n

Avatar
Golden Matonga
Previous Post

Wolrec prepares women aspirants for 2019 elections

Next Post

Access to justice can reduce GBV—Panos

Related Posts

To communicate decision: Mpinganjira (L)
National News

Judges’ bribery case ruling on April 15

April 11, 2021
Chikondi Chijozi3 | The Nation Online
The Big Interview

Chikondi Chijozi: New Malawi Human Rights Commissioner

April 11, 2021
Has over 25 cases to handle: Silungwe
National News

Industrial disputes choke IRC

April 11, 2021
Next Post
Kiefer: The justice system is key

Access to justice can reduce GBV—Panos

Opinions and Columns

Political Uncensored

Managing the dream

April 11, 2021
My Thought

Malawi needs fixing, not politicking

April 11, 2021
People’s Tribunal

Don’t intimidate Nyasaland Union of Teachers

April 11, 2021
Emily Mkamanga

Longevity in power no solution

April 11, 2021
https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf

Trending Stories

  • Malawi Airlines is yet to post a profit since it took to the skies

    Malawi Airlines faces liquidation

    0 shares
    Share 0 Tweet 0
  • MHC houses risk demolition

    0 shares
    Share 0 Tweet 0
  • Shareholders, Airtel tussle in court

    0 shares
    Share 0 Tweet 0
  • MLS wants APM, Muhara property seized

    0 shares
    Share 0 Tweet 0
  • IMF cancels K9bn debt

    0 shares
    Share 0 Tweet 0
  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2021 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.