The World Bank has approved a $350 million grant from the International Development Association (IDA) to support Malawi’s Mpatamanga Hydropower Storage Project (MHSP), part of plans to transform the country’s energy landscape and economic development trajectory.
This project will significantly increase the country’s installed capacity, delivering 1,544 gigawatt-hours of clean energy annually. The additional energy will supply electricity to over a million new households and create thousands of job opportunities.
“MHSP is a top priority for our government as the least-cost option for meeting our growing energy demand and achieving our access targets,” said Ibrahim Matola, Minister of Energy.
“Once operational, this project will drive long-term energy security and support lasting, inclusive economic growth. Energy access is fundamental to reducing poverty, fostering economic growth, and attracting private investment,” he added.
MHSP was co-developed by the Government of Malawi and the International Finance Corporation (part of the World Bank Group) as a public-private partnership (PPP) with an expected overall cost of over $1.5 billion, including financing costs during construction.
In September 2022, the Malawian Government selected a consortium consisting of Electricité de France (EDF) and SN Malawi BV (owned by British International Investment, Norfund, and TotalEnergies) as MHSP’s strategic sponsors through an international competitive tender process.
The project’s financing will consist of grants, equity contributions, loans, and guarantees from various development partners and private sector stakeholders, representing the largest foreign direct investment in Malawi’s history.
MHSP’s main and regulating dams on the Shire River will generate clean energy and store power to supply electricity during peak demand hours, improving the reliability of Malawi’s national grid.
The hydropower facility will also boost the grid’s capacity to support the growing demand of the country’s mining companies, an industry with significant potential to boost economic development prospects.
Commenting on the project, Nathan Belete, World Bank Division Director for Malawi, Tanzania, Zambia, and Zimbabwe, said,” This new hydropower project is a game-changer for Malawi, capable of catalyzing transformative change in productive economic sectors such as mining, agri-business, and tourism. As the country drives its economic development agenda, this new source of clean and reliable energy will help drive business growth, create jobs, and improve the lives of millions of Malawians.”
MHSP is one of several large energy projects in Malawi supported by the World Bank Group, reflecting the institution’s strong commitment to supporting this sector as a key enabler of economic growth and development.
Source:https://energynewsafrica.com
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