Malawi to boost energy with $500m thermal project

Malawi has entered into an agreement with the Chinese government to build a thermo plant to cost between $400 million (K112 billion) and $500 million (K140 billion) at Zalewa in Blantyre. The plant will produce 1 000 megawatts of electricity.

Speaking when signing the agreement with China Gezhouba Group International—the company that is expected to build the plant—Malawi’s Minister of Energy and Mining Dr Cassim Chilumpha said once completed, electricity rationing will be reduced.

It is expected that this massive project once finalised will be a big boost to the local industry, new investments and production as currently power shortage is negatively affecting business due intermittent loss of energy.

Said Chilumpha: “Escom produces about 280 megawatts per day, but this thermo plant will be producing 1 000 megawatts when fully operational. This is almost tripling the amount of electricity generated at the moment.

“We chose to go thermo as a way of diversifying our energy sector. That aside, it is easier to construct than a hydro power plant.”

He said the plant will be built at Zalewa because it is closer to the Shire River and a railway station which will be used by Vale, a Brazilian company mining coal in Mozambique.

“The Chinese government has committed $20 billion (K5.6 trillion) for development projects in Africa and we will suggest to them that the money for this project should be a grant from the same allocation,” said Chilumpha.

He said Vale will be transporting coal from Mozambique through Malawi using rail wagons and the coal will be affordable, but in the long run, the country will be using its own coal.

Chilumpha, however, hinted that government will not drop its plans on interconnection with Mozambique, but it just wants to upscale power generation locally.

China Gezhuba vice-president Yang Yisheng, whose company is also rehabilitating Escom’s Kapichira 2 Power Station, said it will take two years to construct the plant.

“We are eager to help Malawi get this project up and running as soon as possible and we hope when everything has been completed, Malawi will greatly benefit because blackouts will be over,” said Yang.

Construction is expected to start early next year and will be completed in 2014.