Subscriber Login

Deal Watch

IDA approves USD57 million financing for Mozambique–Malawi link [free access]

September 17, 2019

Recently, the International Development Association (IDA), the concessional financing arm of the World Bank, has approved financial support worth USD57 million for the Mozambique–Malawi Transmission Interconnection Project. Of the total, USD42 million will be in the form of a grant and USD15 million as credit.

 

The total cost of the project is approximately USD130 million. In addition, the German KfW Entwicklungsbank (KfW Development Bank) will extend EUR30 million (USD42 million) support and the World Bank will disburse a USD24 million grant from its Norwegian Trust Fund (NTF) for the implementation of the project.

 

The project entails construction of the 218-km-long, 400 kV transmission line connecting the Matambo substation in the western Mozambican province of Tete to the Phombeya substation in Malawi. The line will carry 200 MW of power, mainly from the Cahora Bassa dam on the Zambezi River in Tete. Of the total line length, 142 km falls in Mozambique, passing from the Matambo substation in Tete to Malawi’s border; while 76 km falls in Malawi, passing from the Mozambican border to the Phombeya substation in Balaka.

 

The project is being developed by Mozambique’s state-owned Electricidade de Moçambique (EDM) and Malawi’s Electricity Supply Corporation of Malawi Limited (ESCOM). The transmission line will link Malawi to the Southern Africa Power Pool (SAPP) for the first time, allowing Mozambique to export electricity to the country.