Delays in Implementation of IPPs Worry Malawi Government
The Electricity Supply Corporation of Malawi (ESCOM) has urged Independent Power Producers (IPPs) to expedite the implementation of their contractual agreements, expressing concern over persistent delays.
ESCOM Board Chairperson Gospel Kazako made the appeal at Bingu International Convention Centre (BICC) in Lilongwe during the signing of a 142-megawatt power purchase agreement with Aspin Energy Limited.
“It is one thing to sign numerous agreements with IPPs, but it is entirely another to deliver accessible, reliable energy,” Kazako said. “During my short tenure as ESCOM Chairperson, I have observed that some IPPs have not commenced operations two, three, four, even five years after signing agreements.”
Kazako emphasized that while signing agreements is a positive step, tangible results are what truly matter.
“Yes, signing agreements is exciting, but the real excitement comes when we start reaping the fruits of those agreements,” he added.
He stressed that ESCOM is pushing aggressively to ensure that all IPPs with signed agreements begin delivering on their commitments.
Kazako warned that the companies will be receiving money from taxpayers, and there is no room for complacency.
“There seems to be a general culture among IPPs of treating engagements with the Malawi Government and ESCOM as if they are doing us a favour,” he said. “Let it be clear—you’re not doing us a favour. The Malawian people are paying for every unit of energy produced, and we expect delivery.”
Responding to the concerns, Aspin Energy Limited Group Chief Executive Officer Emilio Paul Matumbi assured that his company is committed to fulfilling its contractual obligations.
“We are not here for a talk show,” Matumbi said. “We have a budget of USD 210 million to ensure that within 18 months, we connect the 142 megawatts to the grid. This will be the biggest power plant, surpassing Kapichira, which generates 110 megawatts.”
ESCOM Chief Executive Officer Kamkwamba Kumwenda commended the agreement with Aspin Energy Limited, describing it as a significant step towards diversifying the country’s power sources.
“Our reliance on hydroelectric power from the Shire River poses a risk, especially during adverse weather conditions,” Kumwenda explained. “Aspin’s gas-powered plant will provide the diversification we need to ensure a more stable energy supply.”
He added that the Aspin Energy plant would be the largest single power plant in Malawi, eclipsing Kapichira’s 129-megawatt capacity.
The government’s renewed push for timely delivery of IPP projects is seen as a critical measure to address Malawi’s persistent energy deficits and support economic growth.
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