The Ministry of Energy and its contractor under the rural electrification project, Consolidated Engineering, are embroiled in a blame game over the failure to complete power line construction in six districts. The dispute has left 76 sites without electricity, despite the contractor receiving materials and part payments.
Ministry spokesperson Joan Thaundi confirmed that Consolidated Engineering was awarded the contract in late 2023 under the Malawi Rural Electrification Programme (Marep), targeting 86 sites across Ntchisi, Ntcheu, Balaka, Neno, Mangochi, and Thyolo. She said all materials were collected and part of the payment made, but the contractor failed to meet targets before the contract expired on June 30, 2025.
A ministry progress report showed overall completion at just five percent. Hole excavation and pole erection (HV line) stood at 30 percent, MV line at 30 percent, HV stringing at 15 percent, substation erection at five percent, and commissioning also at five percent. To ensure affected communities are connected, the ministry now plans to hand over the incomplete sites to the Electricity Supply Corporation of Malawi (Escom).
Thaundi said the ministry held regular contract management meetings to monitor progress, but Consolidated Engineering management failed to attend.
“There were discrepancies between materials collected and those used on-site, based on an internal audit. The ministry intends to pursue the contractor for any variances, including potential repayments or credits,” she said.
William Chirwa, a representative of Consolidated Engineering, acknowledged receiving materials and part payment but blamed delays on currency devaluation, fuel shortages, and procurement challenges. He claimed the ministry still owes the company for completed sites, which has contributed to project delays.
“We collected materials for sites where we were actively working. Most remain on-site, though some were not collected. The part payment was used for project activities. The ministry has outstanding payment certificates, placing us in debt and delaying completion,” Chirwa said.
He insisted the company completed about 40 percent of the work in each district and that the delays did not amount to failure. Both parties declined to disclose the total contract value or the amount of the part payment. Thaundi, however, denied claims of unpaid balances, stating that payments were made based on completed milestones, which Consolidated Engineering failed to meet.
Despite concerns over Marep delays, Escom awarded Consolidated Engineering a contract under the Malawi Electricity Access Project (MEAP). Chirwa defended the move, saying the company aims to remain competitive and that Escom and the ministry are separate entities.
Escom public relations manager Pilirani Phiri confirmed the contractor’s performance under MEAP has been satisfactory and said Escom was unaware of the issues with the Marep contract.
Centre for Social Accountability and Transparency (Csat) executive director Willy Kambwandira urged government to reassign the remaining works to a reliable contractor and develop a recovery plan prioritising the 70-plus unconnected sites. He also called for legal action or cost recovery against the previous contractor to finance completion.
