Video: Mpatamanga Hydropower Storage Project
- The World Bank has approved a US$350 million grant from the International Development Association (IDA) to support Malawi’s 358.5 MW Mpatamanga Hydropower Storage Project (MHSP).
At completion, subject to the mobilisation of private financing, MHSP will significantly increase the country’s installed capacity, delivering 1,544 gigawatt-hours of clean energy annually. This additional energy will help supply electricity to over a million new households in the country and will create thousands of job opportunities.
“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 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.”
MHSP was co-developed by the Government of Malawi and the International Finance Corporation (part of the World Bank Group) as a public-private partnership (PPP) with an expected overall cost of over $1.5 billion including financing costs during construction. In September 2022, the Malawian Government selected a consortium consisting of Electricité de France (EDF) and SN Malawi BV (owned by British International Investment, Norfund and Total Energies) as MHSP’s strategic sponsors using an international competitive tender process. The project’s financing is expected to consist of grants, equity contributions, loans and guarantees from various development partners and private sector stakeholders; and will represent the largest foreign direct investment in Malawi’s history.
MHSP’s main and regulating dams on the Shire River will generate clean energy and store power to supply electricity during peak demand hours, helping to improve the reliability of Malawi’s national grid. The hydropower facility will also boost the grid’s capacity to support the growing demand of the country’s mining companies, an industry which holds significant potential to boost the country’s economic development prospects over the coming decade.
Author: Bryan Groenendaal
