IFC, Scatec, EDF sign Malawi hydropower agreement

The Government of Malawi, the IFC, Scatec and EDF have signed a binding commercial agreement to undertake the co-development of the Mpatamanga hydropower project.

Scatec, and its venture partners British International Investment (BII) and Norfund, and EDF are majority shareholders in the project and will own 55% of the project, split equally between them. EDF will own 27.5%, while Scatec has an ownership of 14%, and the venture partners the remaining 13.5%. The Government of Malawi will own 30%, and IFC 15% of the total project shareholding.

The agreement, signed under Malawi’s public-private partnership framework, concludes the selection process undertaken by the Government of Malawi to competitively select a private sector partner to finance, build, and operate the Mpatamanga hydropower plant.

Located on the Shire River, the 350-megawatt (MW) facility will be a first of its kind in Malawi. The generation facility is composed of two plants – a 309 MW peaking plant and a 41 MW downstream plant. The project is expected to contribute to reducing energy shortages and enhancing energy security in Malawi. The 309 MW plant with its reservoir storage is designed to provide much needed energy during peak demand hours of the day and overall grid stability with its ability to ramp up or down production to meet actual demand.

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