The agreement, signed under the Malawi Public-Private Partnership, finalises the selection process undertaken by the Government of Malawi to choose a private sector partner to co-finance, build and operate the Mpatamanga hydropower plant.
The Mpatamanga project, launched in 2020 by the Government of Malawi, intends to develop a 350MW hydroelectric power plant on the Shire River in Southern Malawi. In addition to doubling the country's hydropower generation capacity by providing mainly peak power, Mpatamanga will contribute to improving Malawi electricity security and stability while facilitating the integration of renewable energies.
In October 2021, the Consortium between EDF and the Norwegian company SCATEC (formerly SN Power) was selected to become the Strategic Sponsor and 55% shareholder. In September, the Consortium signed a Relationship Agreement with the Government of Malawi and the International Finance Corporation (IFC) which sets a framework for the project development phase until financial close. During the development period, the Consortium will conduct extensive E&S studies, finalise the plant design, select an EPC contractor and establish the project financing.
EDF bears a strong industrial role, including technical and E&S leadership throughout the whole project development. By participating in the development of Mpatamanga and becoming a 27.5% shareholder, the Group is further aligned with its CAP 2030 strategy.
The signing of this partnership strengthens EDF's position in Southern Africa, a strategic region for the Group. Béatrice Buffon, the Group's Executive Director in charge of the International Division, went to Malawi to sign the Relationship Agreement. She reminded the local participants that EDF is "proud to contribute to the Mpatamanga project, which is a great opportunity to our technical expertise in hydropower and our strong environmental and social commitment in favor of local communities and biodiversity".