According to bank documents, the project objective is to increase hydropower generation capacity through a public private partnership in Malawi.
The project is a hydroelectric power project (350 MW) located around 40 km west of Blantyre. The project is located on the Shire River, between the existing Tedzani and Kapichira hydropower plants.
In addition, the Government and IFC entered into a cooperation agreement (CA) - an interim, simpler arrangement between GOM and IFC, enabling IFC to start in the name of the Government on certain early-stage development activities before the JDA was concluded in April 2019. The overall project investment amount, financed by the Project Company, and including preparatory work, development costs, interest during construction, and contingencies is currently estimated to US$ 1.07 billion. IDA resources of US$ 350 million shall be used to fund the following components:
Transmission Line (US$ 25 million): The project is expected to include a 64 km 400 kV, double circuit transmission line that will connect the Mpatamanga switchyard to the Phombeya Substation. Loading of the 400-kV line from Mpatamanga to Phombeya will be 169.2 MW for each circuit at 16.4 percent for Ckt 1 and 16.8 percent for Ckt 2. Losses for the transmission will be 0.3 MW for each circuit.
Hydropower Plant (US$ 265 million): IDA resources shall be used to contribute to the project’s capital costs, the details of which, including the form of onlending, shall be determined during project preparation. Capital costs for equipment, civil works, transmission lines, mobilization, and contingency are provided as an early estimate in the technical audit of the feasibility study. It is expected that EGENCO will own equity - funded by IDA proceeds allocated by the Government - in the project company on behalf of the Government. The Government would like to preserve its ability to be represented on the Board of the company through EGENCO, and vote on important decisions. IDA resources are expected be mobilized to cover the proposed EGENCO equity ownership in the project company.
Technical Assistance (US$ 10 million): EGENCO is the proposed Government entity responsible for preparing the project in partnership with IFC, and the Concessionaire. As such, a fully staffed PIU shall be formed at EGENCO to manage project preparation, the members of which will require capacity building in the supervision of complex hydropower projects. In addition, capacity building support in hydropower plant operations, and in engaging with the private sector including risk allocation, and sharing, contractual arrangements, duties and responsibilities of the public sector, and proposed financing obligations, shall be included in a comprehensive TA program.
Senior Financial Specialist
Ministry of Finance, Economic Planning and Development
Mr. Cliff Chiunda
Secretary to the Treasury
Ministry of Natural Resources Energy & Mining
Mr. Patrick Matanda
Electricity Generation Company (Malawi) Ltd.
Mr. William Liabunya
Chief Executive Officer
ACCOUNTABILITY MECHANISM OF WORLD BANK
The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing email@example.com. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.