— The World Bank Board of Executive Directors today approved a $350 million grant from the International Development Association (IDA) to support Malawi’s flagship Mpatamanga Hydropower Storage Project (MHSP). This transformative public-private partnership (PPP) aims to significantly increase the country’s electricity supply, strengthen energy security, and catalyze long-term economic growth.

Once operational, the Mpatamanga Hydropower Plant (MHPP) will deliver 1,544 gigawatt-hours of clean electricity annually, enough to power over one million households. It is expected to create thousands of jobs during construction and operation phases, while reducing carbon dioxide emissions by an estimated 520,000 tons per year.

“MHSP is a top priority for our government as the least-cost option in meeting our growing energy demand and achieving our access targets,” said Hon. Ibrahim Matola, Minister of Energy. “Once operational, this project will help 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.”

Co-developed by the Government of Malawi and the International Finance Corporation (IFC), MHSP is being implemented under a PPP arrangement with a total expected cost exceeding $1.5 billion. The Government of Malawi, through a competitive international tender process, selected a consortium comprising Électricité de France (EDF) and SN Malawi BV—backed by Scatec ASA, British International Investment, Norfund, and TotalEnergies—as the project’s strategic sponsors.

The facility will be constructed on the Shire River, strategically located between the existing Tedzani and Kapichira hydropower plants. MHSP will feature two generation facilities: a 309 MW peaking plant with storage capacity for managing peak demand, and a 52 MW regulating plant downstream. Together, they are designed to stabilize the national grid, enhance the reliability of electricity supply, and support growth in key economic sectors such as mining, agri-business, and tourism.

Speaking on the importance of the project, Dr. Patrick Kabambe, Chief Executive Officer of the Public Private Partnership Commission, remarked:

“The Mpatamanga Project exemplifies the power of public-private partnerships in delivering large-scale infrastructure that transforms lives. This is not just about electricity—it is about empowering Malawians with opportunity. By leveraging private sector capital and expertise, we are unlocking sustainable development while preserving public resources.”

The Mpatamanga Hydro Power Limited (MHPL), established in 2022 as the Special Purpose Vehicle (SPV) for the project, will own and operate the facility. MHPL is currently jointly owned by EDF International and SN Malawi BV, with the future shareholding structure set to include: EDF (27.5%), Scatec and its partners (27.5%), Government of Malawi (30%), and IFC (15%).

MHSP marks the single largest foreign direct investment in Malawi’s history and stands as a beacon of what strategic collaboration between public institutions and private investors can achieve under the nation’s PPP framework. The project also positions Malawi to become an energy exporter within the Southern Africa Power Pool when domestic generation exceeds demand.

The World Bank’s support for MHSP adds to a growing portfolio of energy-focused investments in Malawi, including the Emergency Power Restoration Project, the Mozambique-Malawi Regional Interconnector, and the recently approved ASCENT project to expand last-mile energy access.