africa cooperation DFI Energy Finance Malawi Mozambique

Mozambique-Malawi power interconnection carried out with German financial aid

Germany will help finance the Mozambique-Malawi electricity interconnection project under an agreement to be signed on Friday between German bank KfW and the Mozambican government, represented by Electricidade de Moçambique (EDM), according to official information.

The Ministry of Mineral Resources and Energy said in a statement that the project was to build a 400 KV substation and a 218-kilometre power transmission line between Matambo (Tete province) and Phombeya (Malawi). connecting the electricity networks of the two countries.

This transmission line will link Malawi to the Southern Africa Power Pool (SAPP) for the first time, allowing Mozambique to export electricity to the country, following the signing of a power purchase agreement and other technical and trade agreements between EDM and the Electricity Supply Commission of Malawi (Escom) in April 2019 in Blantyre.

The cost of this project on the Mozambican side is US$100 million, and the German government has donated 30 million euros to be channeled through KfW.

The World Bank has approved a US$42 million grant for this project and will also be responsible for disbursing a US$24 million grant from Norway.

Mozambique’s Minister for Mineral Resources and Energy, Max Tonela, said in the document that Malawi could, through this project, “participate equally with all other Member States (of the Southern African Development Community) in regional trade in electricity.”

Source: Macauhub

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