World Bank Approves $350M for Malawi Hydropower Plant

The World Bank has approved a $350 million grant to support the development of Malawi’s 358.5 MW Mpatamanga Hydropower Storage Project (MHSP).

The project will generate 1,544 GWh of clean energy per annum, powering over a million households.

 “MHSP is a top priority for our government as the least-cost option in meeting our growing energy demand and achieving our access targets,” stated Ibrahim Matola, Minister of Energy, Malawi.

MHSP is expected to cost $1.5 billion and is being developed in partnership with development institutions the International Finance Corporation; Électricité de France; British International Investment; Norfund; and energy major TotalEnergies.

The project will be financed through a combination of grants, equity investments, loans and guarantees. These mechanisms will be provided by varios development partners and private sector stakeholders.

The MHSP is anticipated to be the largest foreign direct investment in Malawi’s history.