Malawi signs an agreement for a hydropower facility

The agreement, which was signed under Malawi’s Public-Private Partnership framework, marks the conclusion of the Government of Malawi's competitive selection process for a private sector partner to finance, construct, and operate the Mpatamanga hydropower facility.

A consortium comprising of Scatec and EDF has been awarded the official title of project lead developer. Scatec, its joint venture partners British International Investment (BII), Norfund, and EDF will collectively control 55% of the entire project equity. EDF will control 27.5% of the project, Scatec will own 14%, and the venture partners will own the remaining 13.5%. The Malawian government will own 30% of the project's total equity, while the IFC would own 15%.

The 350MW facility, which is situated on the Shire River, will be the first of its kind in Malawi. The generation complex is comprised of two plants: a 309MW peaking plant and a 41MW downstream plant. The 309MW facility, equipped with reservoir storage, is designed to ramp up or down production to meet actual demand, producing much-needed electricity during peak demand hours. It is also designed to preserve the overall grid's stability.

The project is anticipated to benefit Malawi by reducing energy shortages and increasing energy security. Mpatamanga will provide electricity to over two million individuals while reducing the annual emission of 520 thousand tons of carbon dioxide.