Malawi abandons financier China Gezhouba on Kam’mwamba coal project – Report
Ministry of Energy has confirmed that the Kam’mwamba Coal-fired Power Generation project has now been given to Energy Generation Company (Egenco) to implement it with government as the sole financier after dumping Chinese financier China Gezhouba.
The Kam’mwamba Coal-fired Power Generation project was to be implemented jointly by the Malawi Government and China Gezhouba Group Corporation (CGGC) at an estimated cost of $667 million, through a loan from the Exim Bank of China.
Government in 2017 agreed to have major shareholding of 85 percent while China Gezhouba Group would have 15 percent for the 300 megawatts (MW) coal-fired power plant project.
But according to published reports, Malawi government will now finance the energy project—to be facilitated by Egenco, which is the major stakeholder—with a financial injection of K31.9 billion from government.
“Simply put, government will finance all the activities for the new operation to be done by Egenco, such as doing environmental impact assessment and environmental social impact assessment including all other activities akin to the general operationalisation of the new company,” said Ministry of Energy spokesperson Sangwani Phiri in quotes reported by Weekend Nation.
The coal-powered plant will need 3 134 metric tonnes (MT) of coal per day, and it shall be operating around 20 hours a day once commissioned.
Follow and Subscribe Nyasa TV :
Cadets caught trying to steal funds again!
kkkk mbjyao wakawatengela nuclear news, akuombera mmanja kaya akuidziwa kuti ndi ciani????
loans and loans and loans and again loans
Said it again and again the project has stalled for a long time started by Bingu way back in 2004; an indication China was not interested.
Folks, building a coal-fired power station these days is an uphill task, what with environmental concerns; unless you have pots of your own money. If the Chinese have pulled out, do we see Egenco, through government, succeeding? Very doubtful financing will be secured.
In any case why build in Kammwamba as if raw materials are there?
But i know and you aswell, why its put there not close to source of raw material
The project is near massive coal deposits in Mozambique and there is a railway line existing
Unlike our own small reserves without infrastructure it is literally 100 km from the coal works of moatize in Mozambique
And Kamwamba site is near Shire river a source of water required by the steam boiler.
The coal from.mozambique is not meant for Malawi its meant for rich countries China, brazil, japan and malawi can not compete with these. So simply the caol from mozambique wi not be affodable to malawi. Do you have information that there large depositof coal in mozambinque or its just a claim do you have facts? Malawi has large deposits of caol in north which has beeen mined from time in memorial and hundred of year to come will still be mined so y locating the plant in south?A poor decion based on trible lines that will costmalawi a fortune.my Malawi… Read more »
Glad! Thanks DPP! We love you.
It is sad that Malawi feels the need to pollute our planet with more coal power, and the World’s people with cancer-causing burley tobacco. Even poor countries can contribute towards our better planet. If Malawi’s president wishes to sit at the top tables, as he does, he must also accept some global responsibility by seeking alternatives to these harmful industries
Mr nick I guess you should stop using charcoal at your house
Since you are environmental friendly
Lead by example
The west was developed on coal energy. Now that they are rich and developed they want to preach global warming. Just google how many coal plants are their in America, UK, Germany…bwana Nick osamangomvela zilizonze za azungu ngati Dr. Joyce Banda