The World Bank has approved a $350 million grant from the International Development Association (IDA) to support Malawi's Mpatamanga Hydropower Storage Project (MHSP). This initiative is expected to significantly increase the country's energy capacity, producing 1,544 gigawatt-hours of clean energy annually. The project aims to provide electricity to over a million new households and create thousands of jobs.
Ibrahim Matola, Minister of Energy, stated, "MHSP is a top priority for our government as the least-cost option in meeting our growing energy demand and achieving our access targets." He added that the project will drive long-term energy security and inclusive economic growth.
Developed by the Government of Malawi and the International Finance Corporation as a public-private partnership, MHSP is projected to cost over $1.5 billion. In September 2022, a consortium including Electricité de France (EDF) and SN Malawi BV was selected as strategic sponsors. The project's financing will include grants, equity contributions, loans, and guarantees from various partners.
The hydropower facility will generate clean energy using dams on the Shire River. It will store power for peak demand hours, improving grid reliability. Nathan Belete from the World Bank emphasized its potential impact: "This new hydropower project is a game-changer for Malawi."
MHSP is part of several large energy projects in Malawi supported by the World Bank Group. These efforts underscore their commitment to boosting economic growth through improved energy infrastructure.