As stated on the project disclosure page, the International Finance Corporation (IFC), as part of the World Bank Group (WBG), is considering support to the Mpatamanga Hydropower Storage Project (MHSP) a 358.5 MW dual-dam hydropower development on the Shire River in Malawi. The Project is expected to almost double Malawi’s current electricity generation capacity, significantly strengthening the country’s clean energy supply, energy security, and resilience.

The contemplated project funding includes several loans of up to US$900 million in debt financing, comprising an IFC Loan of up to US$150 million, an International Development Association (IDA) Private Sector Window loan US$150 million, parallel loans of up to US$600, and risk-mitigation instruments. IDA is also providing a US$350 million grant financing to the Government of Malawi (GoM), and a US$100 million Partial Risk Guarantee benefitting to the Project Company (MHSP). MIGA is expected to provide political risk insurance of up to US$180 million to MHPL’s shareholders. The total financing package aligns with the WBG’s objective to expand access to renewable energy and improve grid stability across Malawi and the region.

MHSP is proposed as a Public-Private Partnership (PPP) implemented through the Special Purpose Vehicle (SPV), Mpatamanga Hydro Power Limited (MHPL). MHPL is currently co-owned (50:50) by Electricité de France (EDF) and SN Malawi (majority owned by TotalEnergies). It is anticipated that GoM, through Electricity Generation Company Malawi Limited (EGENCO), and IFC as project developers will enter the SPV’s shareholding prior to or at Financial Close. Upon finalization, shareholding is expected to be allocated as follows: EDF (27.5%), SN Power (27.5%), EGENCO (30%), IFC (15%).

The MHSP is a greenfield hydropower development comprising:

(i) Main Dam & Peaking Plant (301 MW) with a reservoir 22 km long and 20 km² in area;
(ii) Regulating Dam & Baseload Plant (57.5 MW) with a reservoir 6.6 km long and 1.36 km² in area;
(iii) Transmission Infrastructure: 64 km of 400 kV lines and 11 km of 132 kV lines, with substations at both dam sites;
(iv) Road Infrastructure: Upgrading 26 km and constructing 7 km of the S137 road, plus a service road between the two dams;
(v) Resettlement: Establishing three resettlement villages for physically displaced households;
(vi) Biodiversity Offsets: Natural terrestrial and aquatic habitat management measures aligned with mitigation hierarchy principles;
(vii) Construction Facilities: Worker camps, contractor areas; and,
(viii) An Operator’s Village to house workers during the operation phase.

The Project’s total land take requirement is estimated at 5,863 hectares, covering reservoir areas, dam infrastructure, road upgrades, transmission corridors, biodiversity offset zones, and resettlement sites. Land acquisition will result in both physical displacement (160–200 households) and economic displacement (1,600–2,200 households), along with impacts on community infrastructure such as graveyards, churches, boreholes, and local assets. These impacts will be addressed through Resettlement Action Plans to be developed in accordance with Good International Industry Practice and IFC Performance Standards PSs).

The Shire River is part of the Zambezi international waterway, and seven riparian countries were notified in August 2024, with no objections received. A technical notification was also submitted to the Zambezi Watercourse Commission on February 24, 2025.

The project area falls within the Zambezian–Limpopo Mixed Woodlands ecoregion, a landscape significantly modified by agriculture, charcoal production, and community use. While the project does not overlap with protected areas, several sensitive biodiversity areas lie within the broader Area of Influence, including Majete Wildlife Reserve (300 m downstream), Lengwe and Liwonde National Parks, and the Elephant Marsh Key Biodiversity Area (KBA)/Ramsar site (30 km downstream). Aquatic ecosystems in the Shire River have already been affected by upstream and downstream hydropower operations. MHSP’s environmental and social assessments incorporate cumulative impacts.

As stated by the IFC, MHSP is proposed as a Public-Private Partnership (PPP) implemented through the Special Purpose Vehicle (SPV), Mpatamanga Hydro Power Limited (MHPL). MHPL is currently co-owned (50:50) by Electricité de France (EDF) and SN Malawi (majority owned by TotalEnergies). It is anticipated that GoM, through Electricity Generation Company Malawi Limited (EGENCO), and IFC as project developers will enter the SPV’s shareholding prior to or at Financial Close. Upon finalization, shareholding is expected to be allocated as follows: EDF (27.5%), SN Power (27.5%), EGENCO (30%), IFC (15%).

No contacts provided at the time of disclosure.

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