Govt Needs Investors for Songwe River Power Project

TradeInvest Africa (Cape Town)

28 January 2011

Malawi has major power supply problems, which have undermined its ability to attract investment. Consequently, the government has planned long, medium and short-term projects worth $2-billion that will see adequate supply of power to the country.

Malawi has major power supply problems, which have undermined its ability to attract investment. Consequently, the government has planned long, medium and short-term projects worth $2-billion that will see adequate supply of power to the country. Depending on the uptake of the outlined projects, Malawi expects to be a notable exporter of power in southern Africa in the future.

Investment opportunity

Songwe River Basin Hydropower Project

Facilitator: Ministry of irrigation and water development

Project timeline: Phase I of the project is expected to be commissioned in 2017 and Phase II in 2020

Project cost: US$ 218 million

Unit generation cost: 3.1 USc/kWh

Project description: The Songwe River forms the international boundary between Malawi and Tanzania and has a catchment area of 4 060km2. The proposed identified scheme takes advantage of a narrow section of the river upstream of the Manolo confluence. The scheme comprises a concrete dam with a power tunnel, underground powerhouse and tailrace tunnel on the right bank.

Pre-feasibility studies are completed and the project is at a design stage. Financing arrangements have been agreed with the Tanzanian Government in terms of the joint implementation of the project. However, the feasibility study including the outline design of the upper and middle dams needs to be updated. A detailed design of the lower dam and associated hydropower facilities will also need to be prepared. These activities are estimated to cover a period of 26 weeks from commencement while the actual construction may cover a total period of five years.

The project has estimated potential of generating 300MW for two sites, which will equally be shared between Malawi and Tanzania.

For further information on this investment opportunity and the incentives available for investors in the energy sector contact the Malawi Investment promotion Agency (MIPA).

For more information: http://www.tradeinvestafrica.com/investment_opportunities/225864.htm

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