13
Dec

LAUNCH OF THE PROCUREMENT OF A STRATEGIC SPONSOR FOR THE PROPOSED MPATAMANGA HYDROPOWER PROJECT COMMENCES


The Public Private Partnership Commission in conjunction with the Ministry of Natural Resources, Energy & Mining launched the procurement of strategic sponsor for the proposed Mpatamanga Hydropower Project at Mount Soche Hotel in Blantyre on the 13th December, 2019.

The launch was graced by Minister of Natural Resources, Energy & Mining, Hon. Bintony Kutsaira MP, who was Guest of Honour.  Minister of Transport & Public works -Hon Ralph Jooma MP, Minister of Trade & Industry - Hon Salim Bagus MP and Deputy Minister of Natural Resources Hon. Mungaluswa Mwambande MP also attended the function. Also in attendance were the Board Chairpersons and Chief Executive Officers of EGENCO, ESCOM and MERA, representatives of the World Bank, International Finance Corporation (IFC) and other high-ranking officials.

In her speech, Acting Chief Executive Officer for the PPPC, Mrs Audrey Mwala, said that the tender announcement for the procurement of a strategic sponsor for the Mpatamanga hydro power project is a milestone at the PPP Commission.
According to Mrs Mwala, once the project is completed, it will assist Government meet future power demand during both peak & off –peak periods and reduce sediment inflow into the Kapichira reservoir, increasing power generation at the plant & prolong the lifetime of the reservoir, among others.

Mpatamanga Hydropower Project, which is being co-developed with IFC, is expected to produce 350-megawatts (with 309 MW at the main dam and 41 MW at a secondary regulating dam) at Mpatamanga Gorge on the Shire River in southern Malawi. The project is expected to cost over $850 million in capital investment & will be completed within a period of 4 to 5 years from commencement of construction in 2020.

Under PPP, the private sector contributes unique abilities to develop the Project on behalf of Government, taking away the need for Government to fund all of the capital cost up front and also reducing the financial burden from Government’s balance sheet. After procurement of the strategic sponsor, final signing of PPP contracts and financial closure will follow.