Power Grid

The World Bank has approved a substantial $350 million grant to support Malawi's Mpatamanga Hydropower Storage Project (MHSP), marking a significant milestone in the nation's energy sector. This initiative, developed as a public-private partnership, aims to transform Malawi's energy landscape by increasing its electricity generation capacity and enhancing energy security.

The MHSP is expected to deliver 1,544 gigawatt-hours of clean energy annually, providing electricity to over a million new households and creating thousands of job opportunities. This project represents the largest foreign direct investment in Malawi's history, with a total cost exceeding $1.5 billion.

The Mpatamanga project involves the construction of two dams along the Shire River, strategically located between existing hydropower facilities. Once completed, the project will add 358.5 megawatts to Malawi's power grid, effectively doubling the country's current hydropower capacity.

This expansion is crucial for meeting the growing energy demands of Malawi's population and for supporting the country's economic development goals. The project is also expected to reduce the energy needed to lift and pump treated water, contributing to more sustainable operations. 

The development and implementation of the MHSP are being led by a consortium comprising Electricité de France and SN Malawi BV, with backing from British International Investment, Norfund, and TotalEnergies. This collaboration underscores the importance of international partnerships in advancing large-scale infrastructure projects in developing countries.

The project's financing structure includes a mix of grants, equity, loans, and guarantees from both public and private sources, highlighting the diverse funding mechanisms employed to support such initiatives. 

Malawi's Minister of Energy, Ibrahim Matola, emphasized the project's significance, stating that the MHSP is a top priority for the government as the least-cost option for meeting the country's growing energy demand and achieving access targets. He noted that once operational, the project will drive long-term energy security and support inclusive economic growth.

The World Bank's involvement in the MHSP aligns with its broader efforts to support energy initiatives in Malawi, including the Emergency Power Restoration Project and the Accelerating Sustainable and Clean Energy Access Transformation (ASCENT) project.