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| Business |
| Escom gears up for power imports |
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by
Aubrey Mchulu, 12 May 2004
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18:09:32
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Escom has signed a K1.2 billion loan (79 million South African rands) with the Development Bank of Southern Africa (DBSA) for construction of a second circuit of the 132 kilovolts power line to Lilongwe to expand the capacity of the distribution network in readiness for interconnection with Mozambique.
Speaking at the launch of the 250-kilometre second circuit stringing for the 132 kilovolts line from Nkula B power station to Lilongwe B substation at Nkula Hydro Power Station on Tuesday, Escom chief executive officer Allexon Chiwaya said the project will also ensure adequate and reliable electricity supply to the Central and Northern regions.
“The project will ensure improved security and reliability of supply in the affected areas,” said Chiwaya, adding:
“The second line we are about to string will also provide the much needed internal strengthening of the power network in readiness for the Mozambique-Malawi interconnection.”
Chiwaya, who said the loan will be repaid over a 15 year period, said Escom was facing difficulties in transferring power to Lilongwe and the North because of low distribution capacity which does not match the current growth in demand of about seven percent per annum.
He said apart from the overhead line, the project, estimated to be completed in 12 months, will also involve installation of substation equipment including landing gantries at Nkula B, Golomoti and Lilongwe B substations.
Officially launching the project, Energy and Mining Minister Hetherwick Ntaba said it will be a big boost to the rural electrification programme which, he said, cannot yield the expected benefits if the electrical infrastructure such as transmission lines are weak and lacking sufficient capacity.
Ntaba also condemned vandalism of electricity installations saying the habit of stealing public facilities for personal gains is both very bad and old fashioned.
“Malawi cannot and will not develop if such tendencies are not curbed,” he said, appealing to everyone to be responsible for policing against those who perpetrate vandalism.
In recent years, Escom transmitters have been a target of vandalism by people who, officials have said, target the oil used as coolants in the transformers. This has resulted in most areas experiencing power supply problems as Escom awaits importation of new transformers.
Ntaba also hailed Escom management for conceiving the project and ensuring that it reaches the implementation stage, saying it was his hope that the blackouts resulting from line problems will be minimised.
Tladi Ramushu, DBSA private sector investment manager, said the agreement is of great significance to developing the economy of Malawi as it provides the capacity to improve the distribution of locally-generated power.
He said the project will improve the reliability of energy supply in Malawi and stimulate tourism and agricultural development.
“DBSA is keen to support projects that lead to cross-border investments such as this one which is a step towards connecting Malawi to the Southern Africa regional power pool,” said Ramushu.
Interserve of the United Kingdom, which sought funding from DBSA, will construct the line. |
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