Malawi Government, IFC, Scatec JV and EDF sign a binding agreement to develop a 350 MW hydropower project

The Government of Malawi, International Finance Corporation (IFC), Scatec and EDF have signed a binding commercial agreement to co-develop the 350 MW Mpatamanga hydroelectric power plant project that will be located in Mpatamanga Gorge in Malawi.

The agreement is signed under a Public-Private Partnership framework which concludes that a consortium composed of Scatec and EDF will be responsible for the finance, construction and operation of the project.

The 350 MW hydropower facility on the Shire River consists of two plants: a 309 MW peaking plant and a 41 MW downstream plant. The project is anticipated to provide electricity to about two million people and reduce annual CO2 emissions by 520,000 tons.

Scatec along with its venture partners British International Investment (BII), EDF and Norfund will control a combined 55% of the project's shares. EDF will own 27.5%, Scatec will control 14% and the venture partners will hold the remaining 13.5%. While IFC will keep 15%, the Government of Malawi will own 30% of the entire project equity.