Construction works on the 300MW coal-fired power
project Malawi is underway.
The Ambassador of the People’s Republic of China,
Liu Hongyang, said: “Kam’mwamba Coal-field Power Project is still alive and we
are doing visibility studies on infrastructure like roads, railways systems and
other things to enable easy transportation of coal as well as distribution,”
said Hongyang.
The Kam’mwamba Coal-Fired power plant project
projected to have a life span of 30 years. It is being financed by a US$ 667m loan
from Export and Import (Exim) Bank of China with Lilongwe required to source US
$104m as commitment fee. The plant would use coal from Moatize in Mozambique
that will be transported by rail.
The Ambassador explained that Power Purchase
Agreement (PPA) and the creation of the company to operate the project delayed
the project. Once fully operational, the plant would help Malawi to diversify
from using hydro power which of late has proved to be challenging due to low
water levels.
Energy consultant Grain Malunga, a former minister
of Natural Resources, Energy and Mining, added completion of the project is
critical, arguing that it has potential to improve electricity supply in the
country.
The project is will be implemented under the
Engineering, Procurement and Construction (EPC) model, a form of contracting
arrangement used in big projects where the contractor is responsible for all
the activities from design, procurement, construction to commissioning and
handover of the project to the end user or owner.
“We see the project boosting the energy sector and it is pleasing that the project is taking shape because these are the resources we should have tapped long time ago,” said Mr Malunga.https://constructionreviewonline.com/2019/05/300mw-kammwamba-coal-fired-power-project-in-malawi-underway/
