350MW MPATAMANGA HYDRO POWER PLANT CONTRACT SIGNEDegenco
The Government of Malawi has signed a contract with international private investors to develop the 350MW Mpatamanga Hydro Power Plant through Public Private Partnership (PPP) arrangement. The private investors are international Finance Corporations (IFC) and a consortium of Scatec ASA’s Hydropower Joint Venture and Électricité de France (EDF).
The 350MW Mpatamanga Hydro Power Plant will double Malawi’s hydropower generation to close the gap towards the 1000 MW (1Gigawatt) milestone. It will be constructed at Mpatamanga Gorge (309MW) and at the Regulating Dam (41MW) some 7km downstream, both sites along the Shire River.
Estimated to cost USD1 billion, the project will be implemented through a Special Purpose Vehicle (SPV) with the Government of Malawi, represented by EGENCO, having a 30% shareholding capacity. A Consortium of Scatec ASA’s Hydropower Joint Venture and EDF are the joint majority shareholders owning 55%, while IFC will own 15%.
Construction of the power plant is earmarked to start in 2025 with commissioning expected about 4 years after commencement of construction.
Meanwhile, various activities including social & environmental assessments, final geotechnical investigations, development of sufficiently detailed designs for Engineering Procurement and Construction (EPC) tender, identification of EPC contractors and early site preparatory works will be undertaken in the period preceding construction.
The contract signing ceremony took place in Lilongwe on Tuesday, 6 September 2022.