The Malawi Government, International Finance Corporation (IFC), Scatec ASAs Hydro Power Joint Venture and Electricite de France (EDF) have signed a binding commercial agreement to construct the K1 trillion Mpatamanga Hydro Power Plant.

In a statement released by IFC, on Tuesday,  the signing of the agreement concludes the selection process undertaken by the government to competitively select a private sector partner to finance, build, and operate the new plant.

Matola signs the agreement flanked by Minister of Finance and Economic Affairs Sosten Gwengwe

It said the signing officially awards the role of project lead developer to a consortium composed of Scatec and EDF.

Reads the statement in part: “Scatec, and its venture partners British International Investment and Norfund, and EDF are majority shareholders in the project and will own 55 percent of the project, split between them.

“EDF will own 27.5 percent, while Scatec has an ownership of 14 percent, and the venture partners the remaining 13.5 percent. The Government of Malawi will own 30 percent, and IFC 15 percent of the total project shareholding.”

IFC, a member of the World Bank Group, said once completed the Mpatamanga Hydro Power plant will produce 350 megawatts (MW) which is enough to deliver electricity to approximately two million people.

Minister of Energy Ibrahim Matola said the 350 MW project will not only double the installed capacity of hydropower in Malawi, but also improve power supply securityand provide opportunities for increased renewable energy generation capacity in the country.

Malawi is currently struggling with power challenges. The country has a capacity of about 400 MW and it is not enough to attract investors.

The post Govt, investors sign K1tn power plant agreement appeared first on The Nation Online.