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MCA-M reserves k2.2bn for compensations

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The Millennium Challenge Account Malawi (MCA-M) says it has set aside $5 million (about K2.2 billion) to compensate at least 5 500 families to be affected by its transmission network upgrading project.

Malawi is implementing a five-year energy compact with funding from Millennium Challenge Corporation (MCC) amounting to $350.7 million, designed to contribute to the country’s efforts in reducing poverty through sustainable economic growth.

Some of the contractors who want to bid for construction work at Chintheche sub station
Some of the contractors who want to bid for construction work at Chintheche sub station

The project, designed to improve quality and reliability of power supply in the country, wants to construct a 400 kilovolts (kv) power line from Phombeya in Balaka to Nkhoma in Lilongwe.

It will also construct a 132kv power line, which will run parallel to existing 66kv and 33kv lines, from Chintheche in Nkhata Bay to Bwengu in Mzimba, passing through Mzuzu.

Speaking to journalists at Bwengu on Thursday, MCA director of infrastructure development Felix Nkhoma said compensations will be done by December this year and construction works will begin soon after.

“Normally, compensations are paid through the district council. But this time around, MCA-Malawi is engaging a paying agent who will be disbursing funds to all affected persons. Once compensations have been done, we will immediately start construction works,” he said.

Nkhoma said the project, when completed, will increase the capacity to move power from the south, where 98 percent of Malawi’s power is currently generated, to the Central and Northern regions.

“We are transmitting power from where it is generated to areas where it is needed. For example, we are constructing a 400kv line at Phombeya [a landing point for lines from Mozambique] to bring more power to Lilongwe.

“But here in the Northern Region, a 132kv line from Nkula ends at Chintheche. Only 66kv is transmitted to Mzuzu. So, we are bringing the same 132kv from Chintheche to Bwengu passing Luwinga sub-station,” he said.

Escom senior projects engineer, who is also MCC project coordinator, Alex Kaitane said the 132kv in Mzuzu will reduce load shedding and address power shortage in the city for the next 50 years.

“Apart from the 132kv that will land at Bwengu, this substation will also be a hub for other future developments. We expect to have a 400kv line from Tanzania.

“It has already been designed to accommodate those future extensions. So, this gives confidence to the people in the North that in terms of power they are covered for the future,” he said.

The upgrading of transmission network is part of MCC’s infrastructure development project.

The compact, running up to September 2018, seeks to reduce poverty through economic growth in Malawi.

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