Malawi’s plans to import electricity from neighboring Mozambique have been temporarily suspended after the government was required to provide a $16.8 million financial commitment deposit before project operations can commence.
The high-voltage interconnector project, designed to link the two nations’ power grids and allow Malawi to import electricity, has hit a contractual delay due to the required upfront financial guarantee. Government officials confirmed that the project cannot proceed until the required funds are secured and transferred as security for the power purchase agreement.
Energy authorities and finance officials are working to resolve the funding requirement to facilitate the immediate start of power transmission once financial conditions are met.
–ChannelAfrica–
