World Bank OKs Funds For Malawi-Mozambique Power
The World Bank Tuesday approved a 93 million US dollar credit for the construction of a power link between Malawi and Mozambique, giving the southern African neighbors access to reliable and affordable energy.
Mozambiques share of the credit will be 45 million dollar 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 is a drought, and also to export any surplus electricity Malawi does not 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 Malawis electricity supply and allow the export of any off-peak power surpluses. It will also provide Mozambiques energy sector with a new revenue source, the Bank added.
Meanwhile, the World Bank and the Malawi government Tuesday entered into two agreements through which 65 million dollar will be spilled out towards the poor countrys water supply and investment climate projects.
The first project, for which the Bank would provide 50 million dollar in grant and loan, would be improvement of water supply for Malawis urban areas. Through the project the bank envisaged that about 250.000 more people in Malawi would have access to clean and safe water.
The second project, the Business Environment Strengthening Technical Assistance Project (BESTAP), would be a grant to the tune of 15 million dollar through which Malawi intends to accelerate investment climate reforms to accelerate private sector- led growth during the five years of implementation.
The BESTAP project was aimed at supporting the development of the private sector in Malawi as an engine for sustained economic growth.
