World Bank Approves $57 Million for Mozambique-Malawi Regional Inter-connector Project

The World Bank group has today approved a total of $57 million (about K41. 2 billion) for the Mozambique-Malawi Regional Inter-connector Project.

The project is expected to interconnect transmission systems for the two neighboring countries by engaging in bilateral and regional power trade in the Southern African Power Pool SAPP).

Out of the given amount, Mozambique and Malawi are expected to get $42 million (about K30. 4 billion)as an International Development Association (IDA) and $15 million (about 10.8 billion) IDA credit respectively.

In addition, Mozambique is expected to receive a grant of $24 million (17.4 billion) from a government of Norway trust fund administered by the World Bank, along with a Euros 20 million grant from the Government of Germany.

Malawi shall receive Euros 20 million through an EU grant. Both the EU and government of Germany grants shall be administered by Kreditanstalt fur Wiederaufbau (KfW).

Its main undertakings include the construction of a 218 km, 400 kV high voltage alternating current transmission line, grid connections, and associated infrastructure including substation works.

The line starts at Mtambo substation in Tete Province, central Mozambique, and ends at Phombeya substation in Balaka District in southern Malawi.

In a press statement, Deborah Wetzel, the World Bank Director for Regional Integration for Africa, the Middle East and Northern Africa said with these investments, Malawian households, businesses, and farmers will benefit from increased access to reliable electricity services, that are vital to improve the country’s productivity and competitiveness in the domestic and regional markets.

The SAPP is the first and the most advanced power pool in the continent providing an alternative to domestic electricity generation to improve energy security.