Home Editors choice World Bank approves US$57 million for the Mozambique-Malawi Regional Interconnector Project

World Bank approves US$57 million for the Mozambique-Malawi Regional Interconnector Project

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

The project will interconnect the Mozambique and Malawi transmission systems to enable both countries to engage in bilateral and regional power trade in the Southern African Power Pool (SAPP).

Of this amount, Mozambique will receive $42 million (about K30. 4 billion) as an International Development Association (IDA) grant. Malawi will receive a $15 million (about K10.8 billion) IDA credit. 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.

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