Malawi seal K94bn electricity deal with Mozambique to start 2022

Malawi has signed technical and commercial agreements with Mozambique for the sharing of power  in a bid to address a chronic blackouts hitting the country that will give Electricity Supply Corporation of Malawi (Escom) an opportunity to buy 200 megawatts (MW) of power  from the Southern Africa Power Pool (Sapp) starting in 2022.

Tonela (L) and Chiwaya (C) sign the agreement as others, including Escom board chairperson Thom Mpinganjira (standing 2ndR) and Masi (standing C) look on
Masi confers with Escom board chairperson Thom Mpinganjira
Tonela (L) and Chiwaya (C) show the agreement
Done deal: Masi with with his counterpart from Mozambique, Ernesto Tonela.

Speaking during the signing ceremony held at Bingu International Convention Center-BICC in Lilongwe, Minister of Natural Resources, Energy and Mining Aggrey Masi said the  $127 million (about K94 billion) power interconnection project with Mozambique will “take time”.

He said: “We need to construct transmission lines first and that project will take us till 2022.”

Masi signed the five project agreements between Escom  and Electricidade De Mocambique (E. P. EDM) with his counterpart from Mozambique, Ernesto Tonela.

The project agreements that include implementation, system operating, maintenance, wheeling and power purchase, are subject to renewal every five years as Malawi is still developing its internal power generation capacity.

He said: “Upon completion of the project, we will get 50MW from Mozambique and another 150MW from South Africa totalling 200MW. We are already discussing with the South African Government within the Sapp framework.”

Masi said Malawi depends much on hydropower.

“We generate 90 percent of power from water but look at the current, situation climate change is not doing well for us,” said Masi.

Mozambique Minister of Mineral Resources and Energy Ernesto Tonela said  project will ensure Mozambique exports power to Malawi.

The transmission lines for the project, whose negotiations started in 2007 after the World Bank approved a $93 million line of credit, but later cancelled it in 2010 citing Malawi Parliament’s failure to approve the Loan Authorisation Bill, will cover a distance of 210 kilometres (km) from Matambo in Tete Province to Phombeya in Balaka.

The line is expected to be a double circuit with a carrying capacity of 2 400 kilovolts when all phases are completed.

Germany Ambassador Jurgen Borsh, whose government through KfW, a development bank, provided part of the funding of the project, described the agreements as a milestone for sustainably overcoming energy shortages in Malawi.

The other financiers, who have pulled 20 million euros (about K17 billion) are the World Bank and Norwegian Trust Fund.

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National CEO
Guest
National CEO

But as a Nation do we really know what we are doing? We have many Malawian assets in Mozambique (Nkaya-Nacala Railway line, Donna Anna bridge etc) But we are not using them. Are we sure this project will help us? Will the Mozambicans not change in future?

NYABINGHE WARRIOUR
Guest
NYABINGHE WARRIOUR

akufuna akuti achite tap magetsi ku mozambique nthawi yonseyi amatani

Achiswe.
Guest

All this buying electricity from outside the country (Zambia first and now Mozambique) only puts money, and lots of it, into their pockets. We should be investing that money in home produced electricity, not depending on others. What about wind power, solar power and even wave power on Lake Malawi? Not only is it costly to buy power from other providers, but it is also costly to actually bring it to Malawi with power lines. This issue of a power supply sufficient to meet the country’s needs now and in the future is a pressing one and should have been… Read more »

Mafumu
Guest
Mafumu

Which South Africa r discussing with. Kkkkkk in South Africa escom is finish with the Gupta kkkk Jst Keep on talks with Mozambique

JJ Mbewe the Pathfinder
Guest
JJ Mbewe the Pathfinder

I don’t understand it either. Escom South Africa is fucked up, actually it is also depending on Mozambican energy. No please don’t rely on South Africa.

Piyasi
Guest
Piyasi

Thus very nice .This is what we are expecting.Then what next.What about pipe line of fuel from Beira port to Nsanje

Masuku
Guest
Masuku

Please reporters inform Malawians whether these monies are grants or loans and what are their conditions. Also explain, by adding the 200 MW will Malawi have completely filled the energy deficit that is there now. Do more research and make your stories complete.

Mwananyanian
Guest
Mwananyanian

This is the kind of cross border trade that should have been at least initiated by that almighty DICTATOR, MCP”s Kamuzu Banda, in the mid to late 1970s when Cab(h)ora Bassa Dam was operational. But, no. Kamuzu was conniving against FRELIMO, and siding with the Portuguese colonial occupiers and, by proxy, fighting with RENAMO. Just as Moz sold much of the power to South African mines, we could have piggybacked on some sort of deal too. Countries plan thirty-fifty years ahead for power supply, but Kamuzu just phwii, and unloaded all the problems to future generations. To be sure, the… Read more »

masamba
Guest
masamba

There was a civil war in Mozambique in the seventies and eighties. RENAMO use to destroy infrastructure such as railways. Do you believe that RENAMO would have allowed the powerlines to stand without destroying them. This opportunity to connect to the Mozambique grid is now available because the environment is conducive, It was not before. Secondly, I remember under Kamuzu, electricity was not a problem. It was his Government expanded Nkula falls and constructed Tedzani Hydro electric schemes. It is not as if the Government under Kamuzu did not invest in Electricity when it was in power. Do you think… Read more »

Mirella K
Guest
Mirella K

South africa generates 52,000plus MW. And all this noise for improting a 200MW zoona? Mxiew

nyalugwe
Guest
nyalugwe

Lets hope another party goes into govt before some of the funding reaches Malawi, otherwise DPP will steal it all. Watch out instead if K145 kickback, it may be K300million form some contractors

Saduchie
Guest
Saduchie

south africa is facing acute shortage of power how will they be able to export?