INTERCONNECTION PROJECTS

Interconnectors at transmission level

Mozambique-Malawi Interconnection Project

The objective of the Project is to interconnect Malawi and Mozambique’s electricity transmission system to enable the two countries to engage in bilateral and regional power trade in the Southern Africa Power Pool (SAPP). It is envisaged that once the generation capacity in Malawi surpass the local demand, in recent future, Malawi will participate in power trading with the rest of the members of SAPP through this interconnector.

The total estimated cost for the project is US$ 88 million. The Government of Malawi has secured financing for the project through a loan from International Development Association (IDA) amounting to SDR 11 million (Equivalent to US$ 15 million), a grant from IDA amounting to US$ 42 million, a Government counterpart funding amounting to US$ 7 million and a grant from a single Donor Trust Fund for Norway amounting to US$ 24 million. Government is expected to use its own resources to finance the compensation and relocation of Project Affected Persons (PAPs). A total US$3.6 million is expected to be spent on this exercise.

The feasibility studies for the Malawi-Mozambique interconnector were completed successfully leading the two countries to jointly secure financing for the project. Procurement of the EPC (engineering, procurement and construction) Contractor was completed and construction is underway. The scope of the Project is to interconnect the Mozambique and Malawi Power Systems at 400kilovolts(kV) through a transmission line to be constructed from Matambo Substation in Tete Province in Mozambqiue to Phombeya Substation in Balaka District in Malawi. Malawi intends to initially import 50MW of power from Mozambique. The project is expected to be completed towards the end of 2023.

Interconnectors at distribution level

3MW is being from Mozambique through Mandimba to Mangochi with a potential to increase the importation to 10MW at distribution level. Further to that, Malawi signed a power supply agreement with Zambia in December 2018 for importation of 20MW through Chipata and Mchinji

Malawi-Zambia Interconnection

In in working towards solving the power problems in the short term, the country is importing at distribution level 3MW from Mozambique through Mandimba to Mangochi with a potential to increase the importation to 10MW. In September, 2018, Malawi signed a power supply agreement with Zambia for importation of 20MW through Chipata and Mchinji. The power trading between the two countries was launched on 10th December, 2018.

Malawi-Mozambique Interconnection

The Government of Malawi approved the implementation of the Malawi-Mozambique Regional interconnector Project in mid-2019.The objective of the Project is to interconnect Malawi and Mozambique’s electricity transmission system to enable the two countries to engage in bilateral and regional power trade in the Southern Africa Power Pool (SAPP). It is envisaged that once the generation capacity in Malawi surpass the local demand, in recent future, Malawi will participate in power trading with the rest of the members of SAPP through this interconnector.

The total estimated cost for the project is US$ 88 million. The Government of Malawi has secured financing for the project through a loan from World Bank-International Development Association (IDA) amounting to SDR 11 million (Equivalent to US$ 15 million), a grant from IDA amounting to US$ 42 million, a Government counterpart funding amounting to US$ 7 million and a grant from a single Donor Trust Fund for Norway amounting to US$ 24 million.

The feasibility studies for the Malawi-Mozambique interconnector have been completed. Procurement of the EPC (engineering, procurement and construction) Contractor is the next step. The scope of the Project is to interconnect the Mozambique and Malawi Power Systems at 400kilovolts(kV) through a 76 km transmission line to be constructed from Matambo Substation in Tete Province in Mozambique to Phombeya Substation in Balaka District in Malawi. Interconnecting the Malawi and Mozambique power systems entails Malawi’s connection to the Southern Africa Power Pool (SAPP) since Mozambique is already connected to SAPP. Malawi intends to initially import 50MW of power from Mozambique.

In April, 2019, ESCOM Limited and EDM, a utility company in Mozambique, signed five (5) important agreements under the Project, which is a milestone, and these Agreements are:

Project Implementation Agreement,
System Operating Agreement,
System Maintenance Agreement,
Wheeling Agreement, and
Power Purchase Agreement.

The World Bank Board approved the project in September 2019 while the Malawi Parliament passed a loan authorization bill for the project in October 2019. The loan agreement for the project has been signed by both Government and World Bank.