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| Business |
| Escom, Mozambique firm in power deal |
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by
Ayam Maeresa, 10 June 2003
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17:38:55
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The Electricity Supply Corporation of Malawi (Escom), smarting from a two-month power crisis after flooding water damaged one of its major power station, wants to start buying power from Mozambique to help meet demand at home.
Escom deputy chief executive Allexon Chiwaya said in an interview in Blantyre on Tuesday officials of Mozambique’s power company Hidroelectrica de Cahora Bassa (HCB) are in the country discussing a purchase contract.
He said the deal binds HCB, which was the successful bidder out of 12 utilities firms in the Southern African Power Pool (Sapp) group to supply power to the country.
But first Malawi has to connect to Mozambique’s EdM grid to access power from HCB, he said. Building the 220 kilometre route from Matambo substation in Mozambique to Phalula in Balaka is expected to take three years
Chiwaya said the World Bank is a leading financier in the project that will cost about K7.4 billion (US$80 million).
“We are looking at importing over 100 megawatts initially and then gradual rise with time,” said Chiwaya.
He said this will solve some of Escom’s power problems. Escom has the capacity to generate 304.5 megawatts—98 percent of which is hydro, while the rest is diesel—but is only producing 240 megawatts. Demand for power is over 204 megawatts.
HCB deputy executive director Juliao Pondeca said his company produces 2,000 megawatts, part of which it sells to Botswana, South Africa and Zimbabwe on bilateral contracts. He said Namibia buys power on a short term contract.
He said the fact that the two parties are now discussing a purchase agreement settles many years of negotiations.
“Through our network you will also have access to other regional markets,” said Pondeca.
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