Construction works on the 300MW coal-fired power project Malawi is underway. This is according to Ambassador of the People’s Republic of China Liu Hongyang.
“Kam’mwamba Coal-field Power Project is still alive and there, what we are doing is that we are doing some visibility studies on some infrastructure like roads, railways systems and other things to enable easy transportation of coal as well as distribution,” said Hongyang.
Kam’mwamba Coal-Fired power plant project
The Kam’mwamba Coal-Fired power plant project located, is projected to have a life span of 30 years. It is being financed by a loan from Export and Import (Exim) Bank of China to the tune of US $667m project with Lilongwe required to source US $104m as commitment fee. The plant would use coal from Moatize in Mozambique that will be transported by rail.
The Ambassador explained that Power Purchase Agreement (PPA) and the creation of the company to operate the project delayed the project. Once fully operational, the plant would help Malawi to diversify from using hydro power which of late has proved to be challenging due to low water levels.
Energy consultant Grain Malunga, a former minister of Natural Resources, Energy and Mining, added completion of the project is critical, arguing that it has potential to improve electricity supply in the country.
The project is will be implemented under the Engineering, Procurement and Construction (EPC) model, which is a particular form of contracting arrangement used in big projects where the contractor is responsible for all the activities from design, procurement, construction to commissioning and handover of the project to the end user or owner.