Malawi-Mozambique power project gets funds

WASHINGTON – The World Bank on Tuesday approved a US$93 million (N$651 million) credit for the construction of a power link between Malawi and Mozambique, giving the southern African neighbours access to reliable and affordable energy.

Mozambique’s share of the credit will be US$45 million and involve the installation of a 135-km, 220 kilovolt power line from the Matambo substation to Phombeya in Malawi. On the Malawi side, about 75 km of 220 kilovolt transmission line will be built and a new 220 kilovolt substation installed at Phombeya.Like elsewhere in Africa, both countries have been plagued by chronic electricity shortages and the project is another step in the development of a southern African power grid.”The interconnection will allow Malawi to reap the full benefits of membership of the Southern African Power Pool, both to import electricity when necessary, particularly if there’s a drought, and also to export any surplus electricity Malawi doesn’t use at night-time,” said Wendy Hughes, World Bank senior energy specialist and project leader.As the second phase of the Southern African Power Market Program, the Mozambique-Malawi interconnector project will connect Malawi to the Southern African Power Pool (SAPP), allowing two-way energy trade between the two countries, the World Bank said.The SAPP oversees electricity trade among member countries in southern Africa.This will ensure much-needed diversification in Malawi’s electricity supply and allow the export of any off-peak power surpluses.It will also provide Mozambique’s energy sector with a new revenue source, the bank added.The southern African region has struggled with energy shortages that threatens to affect industrial growth in a region that has some of Africa’s fastest growing economies.Nampa-ReutersOn the Malawi side, about 75 km of 220 kilovolt transmission line will be built and a new 220 kilovolt substation installed at Phombeya.Like elsewhere in Africa, both countries have been plagued by chronic electricity shortages and the project is another step in the development of a southern African power grid.”The interconnection will allow Malawi to reap the full benefits of membership of the Southern African Power Pool, both to import electricity when necessary, particularly if there’s a drought, and also to export any surplus electricity Malawi doesn’t use at night-time,” said Wendy Hughes, World Bank senior energy specialist and project leader.As the second phase of the Southern African Power Market Program, the Mozambique-Malawi interconnector project will connect Malawi to the Southern African Power Pool (SAPP), allowing two-way energy trade between the two countries, the World Bank said.The SAPP oversees electricity trade among member countries in southern Africa.This will ensure much-needed diversification in Malawi’s electricity supply and allow the export of any off-peak power surpluses.It will also provide Mozambique’s energy sector with a new revenue source, the bank added.The southern African region has struggled with energy shortages that threatens to affect industrial growth in a region that has some of Africa’s fastest growing economies.Nampa-Reuters

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