The Malawi government has signed several agreements with companies from the People’s Republic of China to implement multimillion-dollar projects in the Southern African country’s energy sector, which government will finance using proceeds from loans obtained from Chinese banks.
Energy Minister Ibrahim Matola, who signed the deals on behalf of the Malawi government during President Joyce Banda’s recent visit to the Asian country, says Malawi signed an agreement with Chinese firm TBEA to construct new power transmission lines and upgrade existing ones.
The lines to be upgraded were identified in a survey undertaken by the Chinese firm and include the Phombeya–Salima–Nkho- takota–Chatoloma line, which is to be upgraded to 220 kV at a cost of $222-million.
TBEA is to also upgrade the Nkhotakota–Chintheche–Luwinga–Bwengu line to 220 kV at a cost of $139.9-million and the Lilongwe–Mchinji–Chipata line to 330 kV at a cost of $85-million.
Matola says the upgrading of the transmission lines is necessary for Malawi as it prepares to connect to the Southern Africa Power Pool through Mozambique and as it pursues projects to substantially improve its generation capacity.
The country has also managed to court independent power producers, including Australia’s Intra Energy, which is to develop a coal-fired power plant.
Matola says Malawi has also signed a deal with China Gezhouba to construct a coal-fired power plant at Kam-mwamba, in the southern Neno district.
The plant will source coal from the Moatize mine, in Mozam-bique. The coal will be transported to the site through a railway line that mine owner, Brazil’s Vale, is constructing to link Moatize to the Indian Ocean port of Nacala through Malawi.
A spur from the railway line to the site of the new power plant has been factored into the design for the railway line.
China Gezhouba is expected to build the power plant at a cost of about $667-million, and the project is scheduled to be completed in 24 months.
“When this project materialises, Malawi stands to more than double its power output and [be in a position to export] power, [accel- erate] rural electrification and extract mineral [deposists] that have been stranded for lack of power. The project is on schedule and is expected to come on stream by December,” says Matola.
During her trip to China, Banda also met top officials of ZXYong Investment and Hainan International Resource Group, which are mulling heavy mineral sands mining in Makanjira, in Malawi’s southern lakeshore district of Mangochi.