The Electricity Supply Cooperation of Malawi (ESCOM) has been challenged to ensure that the K53 billion debt it has with the Energy Generation Company (EGENCO) is paid by December 31, 2021.
The agreement has been made today during a public reforms meeting facilitated by the country’s state vice president Right Honourable Saulos Chilima in the capital Lilongwe this morning.
According to an update by Veep Chilima on his Facebook page, the meeting was aimed at finding a solutions to the dispute under the ongoing reforms on parastatals organizations.
At the meeting all parties agreed that ESCOM should pay K11.7 billion which it owes EGENCO by December 31, 2020.
“It has been agreed that ESCOM should pay K11.7 billion out of the K53 billion which it owes EGENCO by 31st December, 2020.
Sixty percent of the balance equivalent to K25.2 billion to be paid by 31st December, 2021. The Ministry of Finance will also facilitate that EGENCO issues a Credit Note for the remaining 40 percent balance. This means no bail out for ESCOM,” said Chilima.
