PPPC in talks with investors on K825bn hydro project

The Public Private Partnership Commission (PPPC) says it is in talks with a consortium of two investors who are willing to work in the $1.1 billion (about K825 billion) Mpatamanga Hydro Power project.

Speaking yesterday when the commission appeared before the Public Accounts Committee (PAC) of Parliament, PPPC chief executive officer Patrick Kabambe said discussions are underway and they are hopeful that the parties will make progress on the project.

“At the moment we are in the process of negotiations. This is a big project valued at $1.1 billion.  The biggest project ever done in Malawi if successfully implemented, will add 350 megawatts (MW).

“As you know at the moment Malawi capacity is 400 MW, so 350MW will be almost doubling the capacity,” he said.

Kabambe said once the discussions are concluded, the investors will start working on the project might take four years.

He added that the investors have capacity to come to pull off the project, saying one of the investors worked on a similar one in Uganda.

The consortium consists of SN Power of France and EDF of Norway.

PAC chairperson Shadreck Namalomba called on the commission to prioritise the project as Malawi is facing electricity challenges.

He said the project is crucial to boosting the economy as it will help double power output, attract investors as well as help Malawi realise the Malawi 2063 vision.

Namalomba said: “It is exciting news that they are closing in on the deal. As you know Malawi is facing electricity challenges and access to electricity is still very low.”

Meanwhile, experts say poor investment in the energy sector and over reliance on the Shire River is putting the nation in disarray every time the country faces disaster.

The comments follow the prolonged blackout resulting from heavy rains and flooding caused by the raging Tropical Storm Ana in the southern part of Malawi on Sunday and Monday.

Raging waters damaged machines on the hydro-electric power plants on the Shire River.

The experts have urged authorities to pump in resources in the energy sector and invest in alternatives by utilising rivers such as lower and upper Fufu, North and South Rukuru, Bua and Ruo for hydro electric power as well as engaging in solar, wind energy, gas and biomass instead of over relying on the Shire.

Former minister of Natural Resources, Energy and Mining, Grain Malunga said in an interview yesterday the country needs big power plants in all its regions so that the nation should not affected when nature like cyclones hit power plants.

“It’s unfortunate that we are not even investing much to meet the current electricity demands.

“The plants we are relying upon are from the one party system. As a country we have failed to develop this sector and these are the results,” he said

Agreeing with Malunga, former Elecricity Supply Corporation of Malawi chief executive officer Kandi Padambo said overreliance on the Shire River is like putting all the eggs in one basket.

He said: “There is need for independent power producers and private investors to grab the opportunity and invest in the energy sector.”

Meanwhile, Community Energy Malawi country director Edgar Kapiza Bayani faulted Electricity Generation Company (Egenco) for general laxity in planning for disasters.

“Egenco needs to up its game on disaster risk planning. The issue of more rains resulting in damage to machines or closure of systems is recurrent.

“Much as acts of God are unpredictable, structural engineers can help to redesign the intakes and stations to withstand flash floods and water pressures,” he said.

Bayani called on government to act with speed on pipe line projects such as the Fufu Hydro in the North which has the capacity of generating 260MW and Bua, which can produce 40MW.

On Wednesday, Egenco stated that the situation was improving and it had 168.28MW available for power generation out of the total requirement of 385.8 MW from Nkula, Kapichira and Tedzani power plants.

Malawi Confederation of Chambers of Commerce and Industry president James Chimwaza said it was difficult to quantify the loss accumulated due to the two-day power outage, but was hopeful the situation would return to normal soon.