The Department of Energy Affairs says the signing of 30 million euro (about K25 billion) grant by the Mozambican Government with the German Development Bank (KfW) gives hope that the power interconnector project will commence next year as planned.
The Mozambican State-run power utility, Electricidade de Moçambique (EDM), on Friday signed the grant agreement with KfW to finance the Mozambique-Malawi Interconnection Power Project on the Mozambican side.
This comes as Malawi and Mozambique through EDM and Electricity Supply Corporation of Malawi (Escom) already agreed on the implementation of the project in April this year.
Department of Energy Affairs spokesperson Saidi Jabu said in a written response that government is aware of positive developments happening in Mozambique about the project which signals progress.
Said Jabu: “The two countries have jointly secured financing for the project from the World Bank, KfW and the Norwegian Trust Fund, a grant of 20 million euros (about K16 billion).
“Procurement of construction contractors is underway and construction of the interconnector lines is expected to commence early 2020. Construction will take two years and is expected to be completed end 2021.”
In an earlier interview, Escom chief executive officer Allexon Chiwaya said the cost of the project as determined by the feasibility is $127 million (K96 billion).
He said out of the amount, $92 million (about K69 billion) will be spent on the Mozambique side and $35 million (K26 billion) on the Malawi side.
The project will connect Mozambique and Malawi power systems through a transmission line to be constructed from Matambo sub-station in Tete Province in Mozambique to Phombeya sub-station in Balaka. n