The African Trade Insurance Agency (ATI), under its Regional Liquidity Support Facility (RLSF), has provided a revolving liquidity guarantee to the Salima Solar PV plant. The guarantee can be drawn following any payment delays by the national offtake – Electricity Supply Corporation of Malawi Limited (ESCOM).
ATI, through RLSF, will provide cover for an amount of US$4.4 million against the risk of delayed payment by ESCOM. The RLSF policy will be for an initial tenor of up to ten (10) years. The liquidity cover being provided via RLSF will enable up to US$78 million of total project financing.
Salima Solar PV plant is due to start operations in August 2021. It is developed by JCM Matswani Solar Corp Limited, a Malawian Special Purpose Vehicle (SPV) owned by the Canadian Independent Power Producer (IPP) JCM Power and InfraCo Africa Limited. Construction equity was provided by JCM Power, the Dutch Development Bank FMO, and InfraCo Africa Limited. This will be the first solar PV in Malawi to connect to the grid. The energy generated, at an estimated annual average of 154 GWh, will be sold exclusively to the Malawian utility, ESCOM, under a 20-year Power Purchase Agreement (PPA).
