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 :