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.
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 :