The Electricity Supply Corporation of Malawi (ESCOM) Limited’s efforts to ensure reliable power supply to the Central and Northern regions have been boosted after the European Union (EU) committed to fund the Eastern Backbone Transmission Line project.
EU Ambassador to Malawi, Rune Skinnebach, committed to fund the project after signing a K174 billion (€85 million) agreement with the Minister of Finance, Simplex Chithyola Banda, in Lilongwe on Monday, 29th July 2024.
A statement from the EU Malawi website says they will fund the project because it responds to Malawi 2063’s objectives and EU Global Gateway strategy priority areas.
“This project, which ESCOM will implement, will construct a new 132 kV line on steel-latticed towers to replace the now unreliable 42-year-old wooden pole-mounted lines. The line serves important domestic, agro-based industries, mining projects and rural growth centres. The project will increase the reliability of electricity supply and reduce transmission losses. It also contributes to climate and environment objectives, and builds the resilience of critical infrastructure,” the statement reads.
“The first financing agreement will unlock funding for the rehabilitation of the Eastern Backbone power transmission line. The required funding comes from the European Investment Bank – a concessional loan of EUR 55 million – and from the European Union a grant of EUR 30 million. The Africa Development Bank will also invest in this project in parallel.”
ESCOM Board Chairperson Mr Morgan Tembo and Chief Executive Officer, Mr Kamkwamba Kumwenda, graced the signing ceremony in Lilongwe.
The project involves rehabilitating the 52-kilometre 132kV power transmission lines for Nkhoma-Nanjoka-Nkhotakota to Chintheche in Nkhata Bay and for Nkhotakota-Chinyama-Kanyika by replacing the wooden poles with steel-latticed towers. The project also involves rehabilitating Nanjoka Substation.
Once rehabilitated, the transmission line will help Malawi tap power from Tanzania and solve local transmission challenges customers face in the two regions.
The current line was constructed in 1981; hence, requires maintenance every fortnight, as its structures are weak and susceptible to termite attacks and adverse weather conditions such as strong winds and heavy rains.
In November 2022, Swedfund International gave ESCOM $745 000 (about K759 million) for Escom to engage a consultant to perform an Environmental and Social Impact Assessment for the project.