Malawi government says the power interconnection project with Mozambique is awaiting sealing of approvals with financiers and its legislation in Parliament.
Malawi and Mozambique formally signed the project in April after years of a stand-off between the two governments which will allow Malawi to have access to the Sapp market through Mozambique interconnected grid with Zimbabwe and South Africa hence allowing the country to export power to the region when there is excess.
Minister of Energy Ibrahim Matola said government is currently in advanced discussion with financiers to the project and that once that is done the issue will be taken to Parliament for approval.
“The public should be assured that the power interconnection deal with Mozambique will materialize because we are finalizing agreements with financiers and this is being done now.
“Energy is the most crucial element of development and attracting investors into Malawi. If we resolve over 70 percent of our power challenges we will ease business transactions and increase industrial production thereby ensuring that we also serve the export market and save the current high costs of power,” said Matola
Initially the project, financed by a loan from World Bank, was to cost the two countries a total of US$58 million with Malawi side costing US$31.75 million and Mozambican side taking up US$27 million.
However, Malawi’s former President the late Bingu wa Mutharika halted the project for price re-negotiations after noting the high fees US$480,000 per month which the country would have been paying.
Malawi is one of the few countries in the Sadc region not connected to the regional power network, Sapp that intends to integrate the regional energy sector and address shortages for economic development of the member countries.Follow and Subscribe Nyasa TV :