Millennium Challenge Account Malawi (MCA-M), the implementing agency of $350.7 million (K257 billion) energy compact, has said there is progress in the construction works.
With funding from United States government, the project aims at modernising electricity transmission and distribution network.
The projects, which include modernising Nkula A power generation plant and the construction of the 400 kilovolts (Kv) transmission lines from Phombeya in Balaka to Nkhoma in Lilongwe, the 132Kv lines from Nkhoma to Bunda Turnoff and the construction of sub-stations at Bwengu in Rumphi, Nkhoma and Phombeya, is expected to end in September 2018.
Meanwhile, Kalpataru Power Transmission Limited, which is constructing the 400Kv overhead lines from Balaka to Lilongwe, has started erecting the steel towers, according to information posted on MCA-M website.
According to MCA-Malawi, most of the towers are 40 metres tall and will be erected along a 173-kilometre-long distance connecting Phombeya sub-station in Balaka to Nkhoma in Lilongwe which will work as inter-connectors between Malawi and other countries.
Chint Electric International Limited, a Chinese firm constructing the two new sub-stations is ready to install the 15 mega volt amp (MVA) transformers for Bunda turnoff Power Sub-station and the 25MVA Bwengu transformers which arrived in the country last week.
The transformers were manufactured in China.
In an interview on Monday, Ministry of Natural Resources, Energy and Mining spokesperson Ayam Maeresa said government is hoping to achieve a reduction in the cost of energy for both industrial and domestic consumers which will be possible through infrastructure upgrades to strengthen the electricity transmission and distribution network.
“By the end of the compact, we would have created a conducive environment for private sector participation in the energy sector, boosting up the generation capacity from a current deficit to a surplus,” he said.
With only 17 months remaining, about 35 percent of the $260 million (K190 billion) for infrastructure has been disbursed.