Minister Kambala says Malawi govt to terminate contracts of idle independent power producers
Minister of Energy Newton Kambala says the government is going ahead with its decision to terminate contracts of Independent Power Producers (IPP)s whose works have stalled for invalid reasons.
Government awarded 11 IPPs contracts to generate electricity in that would later be tapped to the national grid.
But apart from the controversial Aggreko diesel generators, only JCM and Cedar Energy Limited are making progress in rolling out power generation facilities in Salima and Mulanje respectively.
The idle IPPs include H.E. Power, Phanes Energy Renewables Nkhotakota Limited, Quantel Renewable Energy Ltd, Droege Mzimba Wind Farm Limited and Droege Monkey Bay Solar Farm Limited.
Kambala the government will now have to terminate the contracts of these non-performing IPPs as they have failed to honor their contractual agreements
Don’t shoot too fast ! Please investigate first why this other companies are not coming to the line to fullfill their obligations to be a IPP! First, I think there is Covid 19, you have to understand the problem on the investors side, which are mostly foreign! Second, there is a still a big problem political and financial with ESCOM and Egenco! Look first into this problems! This current situation is not really inviting for IPPs! Third, if they fail, try to get hold of the planning and business plan of this projects and try to look for other (local)… Read more »
Not true. Cancel the contracts and give them to other IPP that can deliver. When the IPPs who have not honored their contract are ready to proceed, they will have to bid again.
Kodi ase we are not stupid. If you are going to terminate those contracts, just do it already! Nkhani iyi unayamba kuyikamba kalekale but no action. Terminate them already. Chidodo bwanji!?