World Bank Approves K41.2bn Mozambique-Malawi Interconnector Project

World Bank has approved 41.2 billion kwacha for Mozambique-Malawi Regional Interconnector Project.

In a statement, Senior Financial Specialist and Task Team Leader Dhruva Sahai, says the new Mozambique-Malawi Regional Interconnector project will establish a transmission link between the two countries to meet increasing electricity demand in Malawi and create opportunities for trading in the Southern African Power Pool (SAPP).

According to the statement released by the World Bank, Malawi will get a total of K26.8 billion which is made of a 15 million dollars credit from International Development Association (IDA) and 20 million Euros grant from the Government of Germany.

Through the project, a 218 km, of 400 kiloVolts high voltage alternating current transmission lines will be constructed.

The line starts at Matambo substation in Tete Province, central Mozambique, and ends at Phombeya substation in Balaka District.

The project will enable Malawian households, businesses, and farmers to benefit from increased access to reliable electricity services which will improve the country’s productivity and competitiveness in the domestic and regional markets.

In his remarks, Bella Bird, World Bank Country Director for Tanzania, Malawi, Zambia and Zimbabwe says the project seeks to address Malawi’s sectoral challenges, including chronic electricity supply deficits and ensures security of supply as well as reliability and affordability of electricity.

The World Bank’s International Development Association (IDA) was established in 1960 and helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives.