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).
Country updates
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May 21, 2021
Sungrow to supply equipment for 20 MWp Golomoti solar project in Dedza
Sungrow has recently partnered with JCM Power, InfraCo Africa, RINA, and Innovate UK to construct the Republic of Malawi's first utility-scale solar-plus-storage project. Located in the Dedza district...
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August 17, 2020
Malawi launches consultancy tender for Mpatamanga hydroelectric power plant PPP project
The Government of Malawi, with the support of the International Finance Corporation, has launched a consultancy tender for interested firms to provide legal services for the development of the Mp...
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February 13, 2020
RFP launched for 350 MW Mpatamanga Hydropower PPP Project
The Public-Private Partnership Commission of the Government of Malawi has launched the tender for the development of the 350 MW Mpatamanga Hydropower Project. The government has opene...
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January 30, 2020
Malawi to launch RFP for 350 MW Mpatamanga hydropower project
The Government of Malawi is set to launch a request for proposal (RFP) for the development of a 350 MW Mpatamanga hydroelectric power project on the Shire River at the Mpatamanga Gorge under...
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December 23, 2019
Phanes achieves financial close for 46 MW solar project in Nkhotakota
One of Malawi’s first solar projects has reached financial close of US$67 million. Initial site works have begun in Nkhotakota, and construction of the first phase is targeted for completion by...
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