‘Malawi needs new power plant every five years’

Last month, government signed a deal with two Chinese firms, China Gezhouab Group Corporation and TBEA, to access loans from Chinese banks for the construction of a power pool and an energy power transmission line in the country which is expected to double the country’s energy capacity. EPHRAIM NYONDO spoke with Energy Minister Ibrahim Matola to find more on this.

 What moved government to sign these deals?

There is shortage of power in the country. The power plants at Nkula, Tedzani and Kapichira, as we all know, were commissioned in the 1970s and they produce 287 megawatts. However, the demand currently stands at 359 megawatts. As a result, the deficit is failing to support the economy. The energy master plan of the country shows that we need to have a new power plant every five years. But from 2000 to 2012, that has not been happening. The Chinese deal, coupled with the launching of the Kapichira II in August, is part of our grid to increase power supply in the country. We expect an additional 300 megawatts generated through coal permanent power plant. Beyond that, the Chinese projects will also help Malawi to upgrade the dilapidated power lines. We want to develop transmission lines from 133 KV to 240 KV. This will help us to reach areas where a number of economic activities, for instance mining, are taking place.

 How long did government talk with these Chinese companies before signing the deal?

It is not that we just woke up and signed the deals. The negotiations have been ongoing for close to three years.

 These two companies will source K253 billion from Chinese banks in form of a loan to be repaid by Malawians. However, conditions of repayment have not been set. Why then did government rush into signing?

Mind you, this is not a loan like those for road construction. What will be happening is that we have invested in power production. So we will be selling the power to the people, and money from the sales will be used to repay the loan. So the loan will repay itself, not by tax-payers. That is why we did not hesitate to sign it.

 For how long will the loan be repaid then?

It will have to go to Parliament first. The Ministry of Finance will table the bill in Parliament for discussions. After debate, the public, too, will have a chance for input. Then after that, we will come up with a position on [how long the loan will be repaid].

 I understand that Malawi and Mozambique also signed a power interconnection deal, which will see Malawi buying electricity from Mozambique to address the long-standing power outages. Now, how will these two deals work?

The two deals are different. The interconnection deal involves, mostly, building a 135 kilometre, 220 kilovolt transmission line from the Matambo substation in Tete to a new substation at Phombeya in Malawi. The line is to provide 300 megawatts to Malawi. Granted we will also be exporting this power to neighbouring countries. The project will be financed by the World Bank, the Norwegian Embassy, the European Union Bank and the Africa Development Bank (AfDB).

 Now after all these deals, when should Malawians begin to enjoy the benefits?

You see, almost all the deals are yet to be tabled in Parliament. Even the Millennium Challenge Account (MCA). There is nothing, apart from the signing, which has started. We have not even taken a loan on energy. We are working so hard to have these projects rolled out. And soon, Malawians will begin to experience some changes.

 The question is when, honourable minister?

I am sure by December; we will begin to experience a change. We will have an additional 63 megawatts. Trust me, by December things will start to look great.