InfraV-Mpatamanga Hydro (IFC-40830)

Countries
  • Malawi
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Government of Malawi
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 7.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 26, 2021

Disclosed by Bank May 23, 2019


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank documents, IFC will provide investment in the form of: (i) up to US$ 3.5 million through its InfraVentures facility and, (ii) up to US$ 4.0 million in its capacity as implementing partner of the Global Infrastructure Facility funding for the joint development of between 208-309MW Mpatamanga hydroelectric power project in Malawi on the Shire River. The joint development between IFC and the government of Malawi is expected to bring the project to bankability and allow the government to go for tender and select the project developer under a Public Private Partnership. The project will contribute to reducing energy shortages and enhancing energy security, the major impediments to Malawi’s economic development.

The nature of this operation is complex and has the potential to generate significant environmental and social (E&S) impacts. This is expected to be a Category A operation once mainstreamed, as the potential E&S impacts and risks include but are not limited to (i) environmental impacts over natural and potentially critical habitats, and social impacts on downstream riparian communities, as a result of flow fluctuation twice a day to meet demand during peak hours, (ii) economic and physical displacement of approximately 90 households from the area to be flooded by the project’s reservoir, and (iii) potential contribution to the cumulative E&S impacts and risks from existing and planned cascading hydropower projects, other infrastructure projects (e.g. irrigation, water treatment/potabilization) as well as social pressures/deforestation and climate change elated uncertainties that may impact or aggravate E&S vulnerabilities of the Shire River watershed. Key gaps identified in the project’s Environmental and Social Impact (ESIA - 2018) were (iv) no environmental flow (eFlow) study nor sensitivity analysis to assess the magnitude of the potential downstream E&S impacts of peaking, nor Critical Habitat Assessment (CHA) were performed, (vi) the Land Acquisition, Livelihood Restoration Resettlement Action Plan (RAP) was very preliminary and based on aerial photography instead of field surveys and did not include potential downstream impacts, and (vii) no Cumulative Impact Assessment (CIA) nor Climate Risk Assessment (CRA) were performed. InfraV resources will be used to update the RAP and ESIA to international standards and perform a CIA and CRA. The ESIA update will include a CHA and a comprehensive eFlow study and sensitivity analysis to ensure incorporation of E&S considerations into the final project design. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

IFC will provide investment in the form of: (i) up to US$ 3.5 million through its InfraVentures facility and, (ii) up to US$ 4.0 million in its capacity as implementing partner of the Global Infrastructure Facility funding


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

*Contact information not provided at the time of disclosure*

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/ 

How it works

How it works