Malawi Government Turns To Private Investors To Solve Electricity Problem
The Malawi government is inviting private sectors to help invest in a $2-billion power-sector in the country. The investment plan would involve short-, medium- and long-term projects in a bid to solve electricity generation problem which has been affecting the country.
This was confirmed by Grain Malunga who is the Natural Resources, Energy and the Environment Minister who said government is inviting private investors as well as local and international financial institutions to explore the investment opportunities presented by the comprehensive plan, which is seen as a remedy to the electricity crisis dogging the country.
“The plan presents several investment opportunities to the private sector as it outlines the potential areas for electricity generation in Malawi. “For instance, investors can take advantage of the thriving tea and sugar industries and consider investing in electricity generation through the use of biomass. “There is potential to produce over 100 MW from this source,” Explained Malunga
He also said that the initiative will see Malawi’s power generation capacity increase from the current 283 MW to 397 MW by 2013 and to 3 407 MW by 2020.
As a short-term measure, the Malawi government has embarked on the construction of the Kapichira 2 hydro-power plant, which is estimated to cost $60-million.
“This power plant is set to add 64 MW to the national power grid and will take 24 to 30 months to build,” says Malunga.
He says the Malawi government also plans to rehabilitate and modernise its power generation facilities using the $300-million compact grant it is to receive from the US’s Millennium Challenge Corporation, in December.
In the medium term, Malunga says, the Ministry of Natural Resources, Energy and the Environment will be facilitating the production of coal-fired power by private coal-mining firms, which are being granted licences to undertake such ventures.
The Ministry is also studying the feasibility of setting up hydropower plants on several sites on the Shire, Bua, South Rukuru and Dwambazi rivers, and it is estimated these will generate a total of 1 240 MW.
“In the long run, it is anticipated that more power plants will be established on the Shire, Songwe and Rukuru rivers to generate an additional 770 MW,” says Malunga.
Electricity supply in Malawi has been affecting the economical growth as well as social life as there are blackouts nearly every day. Many have criticised government for failing to sort out the problem of electricity supply in a country where there are so many rivers which can used to generate electricity.
Speaking to Dave Khoviwa a local Blantyre businessman on the idea he said ‘’ it’s high time this happens as ESCOM has miserably failed us for song long, may be this would solve the problem’’. However some are skeptical of the idea as it may bring the cost of electricity high to consumers.
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Posted by malawi voice
on Sep 3 2010. Filed under BUSINESS, LATEST NEWS.
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This is obvious that electricity impacts the economic growth. In so many ways than is said here. A little bit of information on how they plan to secure investors money could have been an intresting read. Nice work tho…. We need a competitor for escom.