Financial challenges cripple Kamwamba coal fired power plant project

The Electricity Generation Company (EGENCO) has revealed that the construction of Kamwamba coal fired power plant will take at least three years to be completed.

EGENCO’s Chief executive officer, William Liyabunya, has also admitted that the project, which is estimated at about K300 billion, is facing financial challenges.

Liyabunya therefore said since EGECO cannot manage to raise such amount, they have embarked on lobbying the government to inject some funds from the Malawi Rural Electrification Project (MAREP) into the project.

He said: “On our own as EGENCO we cannot raise that sort of financing and therefore we have been lobbying the government to inject money into the project and the proposal was to get money from MAREP funds.”

Liyabunya said the move to source money from MAREP funds will not be strange because previously Kapichira Hydroelectric Power Station phase 2 was also developed using a concessionary loan from MAREP funds.

He further expressed hope that if the finances start pumping in then it will give confidence to other private financers that can come in and partner with Malawi government through EGENCO.

Energy consultant Grain Malunga, a former minister of Natural Resources, Energy and Mining, once told the media that the completion of the project is critical, saying it has potential to improve electricity supply in the country.

If completed the plant will be using about 400,000 tons of coal annually from Moatize in Mozambique.

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