Malawi: Coal fired power plant in Neno awaits $600m loan approval

Rural district of Neno

Rural district of Neno

13 April 2015, Blantyre — Malawi News Agency has learnt that the construction of a Coal Fired Power Plant-CFPP at Kamwamba in Neno awaits the approval of a US$600 million loan from the Chinese Government.

The construction would follow a contract agreement which Malawi signed with China Ghezouba Group Company-CGGC in June 2013.

Spokesperson in the Ministry of Mines, Energy and Natural Resources responsible for energy, Joseph Kalowekamo, said on Thursday that a feasibility study had already been concluded.

“This is a Government of Malawi Project which will be financed through a loan which the Government applied with EXIM Bank of China through the Chinese Government.”

“All the assessments have been done. What remains on our side now is to demarcate the site for the actual construction of the power plant which will be done in the next few weeks,” he said.

Kalowekamo could however not disclose the exact dates for the commencement of the project.

“It remains difficult for us to tell when exactly the construction will start because it all depends on how fast the loan will be approved,” said Kalowekamo.

According to Kalowekamo, the ministry plans to have the power plant operational by 2018.

The project will use coal from Moatize in Mozambique to be transported by the rail currently under construction.

The plant is expected to add 300 mega watts to the current 351 mega watts.
*Memory Kutengule – Malawi News Agency

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