The Government of Malawi and International Financial Corporation (IFC), Scatec and a British Integrated Energy Company (Electricity de France) EDF signed on Tuesday entered a commercial agreement under Malawi’s Public-Private Partnership (PPP) framework to undertake the co-development of the 350-megawatt (MW) Mpatamanga hydropower projects.
Scatec disclosed this in a press statement on its website on Tuesday and said the agreement involves financing, development and operation of the hydropower facility, composed of a 309 MW peaking plant and a 41 MW downstream plant – located on the Shire river.
Further, the statement added that its venture partners British International Investment (BII) and Norfund, and EDF will own 55 per cent of the project, with ownership split between EDF (27.5 per cent), Scatec (14 percent), venture partners (13.5 per cent). The Government of Malawi will own 30 per cent and IFC 15 per cent of the total project shareholding.
Mpatamanga will deliver electricity to approximately two million people and save 520,000 tonnes of CO2 emissions per year.
“The 350 MW Mpatamanga Hydropower Project will not only double the installed capacity of hydropower in Malawi but also improve the power supply security, provide opportunities for increased renewable energy generation capacity in the country and contribute to the controlling of the flow of the Shire River downstream the power plant,” says Minister of Energy in Malawi, Honourable Ibrahim Matola.