Kammwamba coal fired plant awaits Chinese loan

Kammwamba coal fired power plant which is expected to double Malawi’s electricity generation from about 287 megawatts, awaits a loan from the Government of China, authorities have said.

Malawi’s Minister of Energy Ibrahim Matola speaking in an interview on Monday in Mangochi, said Malawi will soon meet its power demands after the construction of the power plant in Neno.

The project which Matola said will be constructed by China Gezhouba Group Company will include supply and installation of steam turbine generator units, construction of 15km 132kv double circuit transmission lines, and 10km railway line for coal transport.

“We will be using coal from Moatize which is being mined by Vale. There is a [coal] grade which is not being used and we want to use it for power generation. Gezhouba is well conversant and has the expertise in coal fired power plant. We signed a memorandum of understanding (MoU) with the company and the Chinese Government in June this year and all the documents are with the Ministry of Finance.

We are now waiting for a loan from the Chinese government. The loan must not be an issue to Malawians because the power plant will be raising revenue to pay back the loan,” said Matola.

He argued that the loan is not like other development project loans because it is a self paying project where the users of the power will be paying and hence servicing the loan.

Currently, the country’s total installed power generation capacity stands at 287 megawatts against a suppressed demand of 350 megawatts with only nine percent of Malawians have access to electricity.

The Electricity Supply Corporation of Malawi (Escom) will add an extra 64 megawatts to the national grid after the commissioning of Kapichira Phase two, but the power will not be enough for the economy which is experiencing a boom in the mining sector.

Malawi also signed a power interconnector with Mozambique which will see the country importing and exporting power.

Malawi also signed an MoU for the construction of another coal fired power plant by Intra Energy Corporation at Chipoka in Salima which will generate about 120 megawatts.

To further ensure that the country matches its power demand and supply, Government is encouraging the use of energy saver bulbs and is also diversifying into solar power.