Malawi to unbundle Escom into two parastatal companies– Govt

The Ministry of Natural Resources, Energy and Mining has explained that government has no intention to sale Electricity Supply Corporation of Malawi (Escom) but will unbundle the utility into two companies.escom  load shedding

The ministry public relations officer, Joseph Kalowekamo, explained that with technical and financial support from Millennium Challenge Account, Malawi, intends to unbundle ESCOM into two companies – one responsible for generation and the other for transmission and distribution of electricity.

MCC is an independent United States of America foreign assistance agency that seeks to reduce poverty in developing countries through supporting economic growth.

The project will also bring in Independent Power Producers who will be given licenses to produce their own power and sell to the nation.

“The companies will be parastatals. Therefore, the issue of selling ESCOM does not arise here,” Kawelekamo explained.

“It is expected that the unbundling will enable private sector participation in generation and bring about efficiency in the power market,” he added.

Kawelekamo said there are plans to generate about 1500 MW by 2019.

“To achieve this, there is need for private sector participation, and the unbundling will contribute towards achieving this,” stated Kawelekamo/

He said the Ministry, in collaboration with Malawi Energy Regulatory Authority ESCOM and MCA-M, will conduct a series of workshops to sensitive various stakeholders on the power market restructuring exercise to ensure successful implementation of it.

The unbundling of ESCOM is expected to be completed by 30th June 2016, according to Kalowekamo.

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From the World

38 thoughts on “Malawi to unbundle Escom into two parastatal companies– Govt”

  1. kaya says:

    Peter akufuna atengeko zake…. this the time he was waiting for .. not to serve malawians koma he was after kuthetsa kunyoza … as you used to say sangakhale president thats it.

    its when corruption shall be waste by privatising it…but under private company not boma
    Magetsi adzizazima ku ma high density areas…..that time lets wait and see

  2. Ulemi says:

    Ayi, ayi. Inenso sindikugwirizana nayo plan iyi. Koma kutukwana kotele ndakana chifukwa one sindingalole kutukwanidwa chon hi
    Ayi. Nfundo yeniyeni ulibe. Ayi.

  3. Concerned Citizen says:

    People are commenting on this ESCOM issue without understanding it at all. Government will not sell ESCOM at all. Power is a key driver to a country’s economic development and Governments all over, especially in the developing countries have an obligation to ensure adequate and stable power. They can only do that if the institution that provides power is under Government. This, the present Government knows and will never privatise as ESCOM as some would want people to believe.

    The issue here is that ESCOM is going to be unbundled to make it more efficient. This has been the trend in most developing countries and it has worked. ESCOM can not continue to monopolise the power sector, especially when it is inefficient. Some of those spreading the false rumours are ESCOM employees themselves who are fearing the unknown and would want things to remain the same. No, these are changing times.

    Those who think can not go along with the reforms should go out voluntarily. They have had their field day. It is time for changing the way to do things.

  4. Bwaxy says:

    Peter ukufuna kugulitsa magetsi?umadya nsima koma ngati umadya umageyitsila mchimbuzi chako manyi amenewo ukuganiza makampani omwe akukunamizawo akuthandiza mpaka kuti ukanena za solar kuno ku south africa masola omwe ukunamawo ali pa mtengo wa 10000 ukatayimusa ndi kwacha munthu wakumudzi angaipeze ?amalawi musamaname kuti kumalawi kuli dimokalanse ilipo ndi dikiteta basi otsutsa angokhala ngati mwana olira ndi mkodzo peter fuck u idiot galu wachabe chabe tikumana nthawi ya zisankho ndizaimira chipani changa masipa ahau maretau peter

  5. stain says:

    Zikufuna exposure kuti mmalawi avetsetse

  6. This DPP government its too corrupt,Our country will never developed we r keeping on depending out countries until when msb has been sold now its escom for de same year what about three coming will be nothing.

  7. blessings kabuth says:

    keep it up,next step is selling the whole country I guese.

  8. Thom Paul Duncan Nlalodzwa says:

    To some extent privatisation and spitting parastatals can be a good thing. But you are very wrong. Some of the commentibg under pseudonames here are experts and know what they are saying. The problem of having bastards in government and boards of parastatals is surely this. We shall destroy Malawi together. We will never be spectators when you are destroying this country. Tili limodzi

  9. my name says:

    These people are just liers, have you already forgoten the MSB scandal Malawians? They lied about not selling it but didn’t they eventually? Definitely if they succed doing this it means more tax on us yet same peanuts that we get every month. Montuary, they want to privatise and so are other hospital services. Why can’t these idiots find targible and permanent strategies that wil boost our economy and help everyone?

  10. Charter says:

    A waste of time and resources! Parastatals will not be efficient in Malawi as long as they answer to the president. Appointments of boards are mediocre and political, operations are brainless, and the little profit made is not invested but contributed to presidential (and henchmen) reserve of forex – such as typically found when presidents die in office! Just sell ESCOM to people who can run it on business terms. forget about rural electrification. Ife akumudzi we have been here long before koloboyi was invented. And we will survive!

  11. Chris Chikwemba says:

    Bambo unkuzayamba kugulitsa zipinda mnyumba Ana Ali momwemo…kkkkkkkkk Uyisova.

  12. James Phiri says:

    The Act of Parliament that established ESCOM in 1984 as repealed in 1998 should have guided the so called unbundling. One Act of Parliament establishing Electricity Generating Co of Malawi (EGCOM) with assets including Nkula I and II and Tedzani; and another Act establishing ESCOM whose assets shall include the pylons and transformers and meters for distributing electricity. ESCOM shall be sole distributor or others will be allowed to come in?

  13. James Phiri says:

    So you need donor support to “create” two parastatals from one?

  14. Tizingo cheza says:

    So the distribution department will buy power from the generation dept if not then where will the generation dept get money definitely one part will fail and justified to be sold. End result high tarrifs plus VAT, common malawians getting poorer and poorer.

  15. chefourpence says:

    kkkkkkkkk koma mbuli kulongolola!

  16. nkasimunguya chinankasanganye says:

    Dont lie to us, we know this guy, he is selling it.What he wants to do is build a beautiful cemetry than of his brother. It wil hav DSTV and several swiming pools, I assume.

  17. 2mbwe says:

    Good development

  18. Wongie says:

    Malawi wabwino uja apa ndiye wapita basi,,,ndikutembelere tsiku limene ndinamuvotera president wa malawi

  19. Anda says:

    And I quote ” the government would like to split ESCOM into two companies, one for generation of power and the other one for distribution and transmission of electricity”

    What is that? Will these electricity distributors be carrying electricity in bottles like Fanta or what? After this move, also divide the presidential seat, it should have multiple sides of operation, if it fails you may sell him. That is if at all you will find interested bidders out there.

    Ka dziko kakangono kaleka kayamba kukula tu chifukwa chochepa kaganizidwe. Hehe

  20. Mtochi says:

    DPP is the most corrupt party Malawi will ever have. MCP pliz bail us out, we r tired to the bone of being ruled by Pagans.

  21. Jang'ala says:

    That is a good development. Chifukwa anyamata a ESCOM ndiye atikwana. Mwina nkumaonako kusintha anthuni.

  22. Bwampini says:

    Please if possible privatise state house and the presidency. We just need an expatriate president to sort out the mess in malawi

  23. Kadakwiza says:

    At the end, the poor is going to suffer.

  24. Thom Chunga says:

    Its good development.

  25. Ganyavu says:

    Zaziiiiiiiii tidikileni 2019

  26. mpimpa says:

    whatever, we all know that by the end of the cashgate will still take place. Just do it and hv money u guys ife tikamalira timati“ mayoooo ine chala changa udandilakwitsa kubvota”

  27. Tili Chenene says:

    Is this the way we should have done? Whether it is a good idea or not, the procedure is not as good

  28. Concerned Citizen says:

    This is a very positive development.

    BUT

    Please can all the related agreements be reviewed by an extremely well seasoned and independent lawyer in the field of energy/ power to vet the agreements which will come into force. This would be on behalf of the Government to ensure they are for the benefit of the nation as a whole and not a select few power producers who will milk the nation, or lock us into unfavourable deals.

  29. ochima says:

    That will crete competetion on service provision and may be a better Malawi by 2019.

  30. Mlomwe Wamkulu says:

    Exciting news to unbundle the utility company. Can you cite me any country that has improved the performance of companies like ESCOM. The concept is good, proposed by the Bretton Woods, but has failed miserably. There are many objectives for implementing electrification programs in country, among them social. Government’s all over subsidize utility companies. Unbundle to encourage other players to generate power, but expect no improvements, but more suffering arising from hiked tariffs .

  31. drogba says:

    now I’m vindicated. on your last issue on the same, Malawi24 erroneously reported that ESCOM is to be sold by government. Most commentators ignorantly lashed out all sorts of rubbish on government but I said the truth about this matter; that government wishes to split ESCOM. I said that coz I had the facts. Nyasatimes, please avoid publishing speculations, rumors like Malawi24 just to attract negative comments from some people whose ears get tickled by rubbish. If ESCOM is to be split, we may increase our generation muscle. Its unfortunate that most Malawians love not only to create but also spread and comment on speculations

    1. chiya says:

      Mlomwe wamkulu and others u r the dullest on earth. Kodi boma likamati likufuna kugawa escom to allow pvt sector to joint power generatn, is that different from preparing to sell nkula and tedzani? why cant the pvt power generaters just connect their supply lines to escom without having to unbundle escom? tulo amalawi. malawi on sale.

      1. drogba says:

        za ziiii @Chiya, kumangobwebweta emotionally with no point, barking uselessly. bring up alternative avenues that will end these power outrages

  32. Achimidzimidzi says:

    I do not trust this government.We will be suprised that ESCOM is sold out in closed doors becuase president has constutional powers or this decision is another landmark disaster in our governance.

    DPP government will tell us that Dr Lazarus Chakwera ” the village idiot” is behind the selling of ESCOM.

  33. makito says:

    In less then a year’s time. Civic education should have been already underway. Please expedite action with regard to public awareness.

  34. Dr Ben Phiri says:

    Mapwevu pwevu government

  35. koma says:

    very poor companyEscom .should be privatised in order to be effective.Asiye kunyada agalu amenewa.

Comments are closed.

More From Nyasatimes