Malawi and China have signed two energy deals that would facilitate enhanced generation of electricity power totaling $667.233 million.
The first deal involves a transmission line project that would see Chinese company, TBEA, construct additional and upgrade power transmission lines in the East African country to deal with problems of a saturated power transmission system.
The second is where China Gezhouba Group Company (CGGC) will design and construct a Thermal Plant at Kammwamba in Neno, a district in southern Malawi.
The Energy Minister of Malawi, Ibrahim Matola, revealed that after a survey of the existing transmission network, TBEA had proposed three possible upgrades in the following descending order of priority–Phombeya-Salima-Nkhotakota-Chatoloma, 220 KV Transmission Project; the Nkhota-Kota-Chintheche-Luwinga-Bwengu, 220KV Transmission Project; and Lilongwe- Mchinji-Chipata 330 KV Transmission Line.
“As government, we are extremely excited at the prospect of upgrading and construction of new power transmission lines as the project would create jobs for the locals besides, crucially, alleviating the challenge of power outages, which is critical for industrial development,” he said.
He said the two projects will economically transform Malawi in the next 10 to 15 years.
Malawi stands to increase by more than double its power output and allow for exportation of power, expansion of rural electrification and extraction of some minerals that has been hampered by a lack of adequate power, he said.