Thursday, August 6, 2009

What ever happened to the Caborra Bassa Bill?

As Malawi reels under the incessant power cuts, one of the most urgent investment project must surely be the connection of the Malawi national grid to the Caborra Bassa. The funds are all there . In 2007 the World Bank approved a US$93 million credit July 17 for construction of a transmission line between Mozambique and Malawi, allowing Mozambique's 2,040-MW Cahora Bassa to fulfill a power contract with Malawi. Mozambique's share of the credit was to be US$45 million and would involve installation of a 135-kilometer, 220-kilovolt power line from the Matambo substation to Phombeya in Malawi. On the Malawi side, about 75 kilometers of 220-kilovolt transmission line would be built and a new 220-kilovolt substation installed at Phombeya.

According to a Wendy Hughes, World Bank senior energy specialist and project leader

"The interconnection will allow Malawi to reap the full benefits of membership of the Southern African Power Pool, both to import electricity when necessary, particularly if there's a drought, and also to export any surplus electricity Malawi doesn't use at night-time," said .

And yet in the recent parliament sitting one of the Bills that was not passed was one authorising the government to accept the World Bank loan to finance the interconnection. It will be recalled that last year, the Bill was not passed because the parliament never got around to discussing it after the President suspended it. So what is the reason this time?


We checked around. It now seems that Malawi and Mozambique have yet to agree on terms of the interconnection. Apparently Mozambique still insists that Malawi pay for a fixed amount of power whether or not it actually uses it. Malawi, on the other hand wants (a) to pay only for what it actually uses and (b) to be allowed to also export energy back to Mozambique should she have a surplus. This apparently what agreements between Mozambique and other Southern African Power Pool members specify.

The negotiations go as far back as 2003 and 6 years on there apparently is no agreement. Whatever is holding up the agreement, this goes against the expressed needs for connecting all SADC countries. At present Malawi, Angola and Tanzania are outside the pool READ MORE. For Malawi the delay will further hold back significant investment in mining which depend on availability of electricity. Malawi ought to mobilise its best diplomats and technocrats to engage Mozambique on this crucial issue.

1 comments:

Anonymous said...

Wouldn't it be better to invest US$93 million in our local generation capacity, including develping HEP stations on South Rukuru River and alternative energy (solar and wind power)? That would save us foreign exchange in the long run. No?
Just thinking aloud.

Post a Comment