Mpatamanga Hydro Power Limited (MHPL) is a special purpose vehicle (SPV) established in 2022 to develop, finance, construct, own and operate a hydropower Project on the Shire River at Mpatamanga Gorge under a Public-Private Partnership (PPP) model with the Government of Malawi (GoM) owning a 30% shareholding. The Project capitalizes on the advantages of a PPP, eliminating the constraints on public resources, while at the same time fostering economic growth in the region.
The Mpatamanga Hydro Power Plant (MHPP) Project is located between two existing hydropower plants, Tedzani and Kapichira. The 361-megawatt (MW) facility will be a first-of-its-kind in Malawi and the generation facility will comprise two plants – a 309 MW peaking plant and a 52 MW downstream regulating plant. The peaking plant with its reservoir storage is designed to provide much needed energy during peak demand hours of the day and contribute to the overall country grid stability with its ability to increase or decrease production to meet actual demand . Downstream from the main dam is the regulating dam which controls the onward flow of water bank into the river but also has a plant to generate additional electricity.
MHPP will deliver electricity to around two million people and save approximately 520,000 tons of Carbon Dioxide emissions per year . The Project is expected to contribute to reducing energy shortages and enhancing energy security in Malawi and has the potential to produce Foreign Exchange inflows if supply exceeds demand surplus electricity is sold into the Southern Africa Power Pool.
The GoM, the International Finance Corporation (IFC, part of the World Bank Group), Scatec and Électricité de France (EDF) signed a binding commercial agreement to co-develop the Mpatamanga hydropower Project made public on (the “Relationship Agreement”).
The agreement, which was signed under Malawi’s Public-Private Partnership framework, concluded the competitive tender process undertaken by the GoM to select a private sector partner to develop, finance, build, own and operate the Mpatamanga hydropower scheme. The Relationship Agreement officially awarded the role of Project lead developer to a consortium composed of Scatec and EDF.
Mpatamanga Hydro Power Limited is currently owned by SN Malawi BV (owned by Scatec ASA and its partners British International Investment (BII) and Norfund ), and EDF International (owned by EDF SA) each owning 50%. The planned ownership structure for MHPL is EDF 27.5 % and Scatec and its venture partners 27.5%, GoM 30 % and IFC 15% of the Project.