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Friday, 19 September 2008

Moz-Malawi transmission project could start soon, despite political impasse

The Mozambican government says it expects to start work on a power transmission line to the border with Malawi – to be implemented as part of the Mozambique–Malawi power interconnector project – within the next 12 months.

Energy Minister Salvador Namburete says the Mozambican government has already signed an agreement with the World Bank for a $45-million loan for the transmission line, which will run from a substation at Matambo to the Malawi boarder.

"We expect the project to start within 12 months, after all the financial engineering is finalised. The new line should be in place next year, if all goes according to plan," says Namburete.

He, however, expresses concern over Malawi government delays in finalising financial arrangements for its portion of the project, due to the fact that Parliament has still to pass a Bill authorising President Bingu wa Mutharika's government to borrow funds for the project from the World Bank, owing to squabbling between government and the opposition, which dominates Parliament.

"We hope the political impasse in Malawi will [end] so that Parliament passes this Bill to allow the project to proceed smoothly . . . Anyway, we will continue monitoring the situation in our neighbouring country," says Namburete.

The opposition insists that the Speaker of Parliament should declare the seats of Parliamentarians who defected to the ruling Democratic Progressive Party vacant, if Parliament is to operate smoothly. Wa Mutharika is apparently to see this happen, fearing his party will end up with fewer Parliamentarians.

Malawi's Minister of Energy and Mines, Ted Kalebe, however, says the Malawi government is working to ensure that Parliament passes the Bill soon.

"We are optimistic that the Bill will soon be in the house and it will pass. Once that is done, we expect to communicate with all our partners on the way forward on the project," he says.

The Mozambique–Malawi power interconnector project is part of the Southern African power market project of the Southern African Power Pool (SAPP), and its implementation will ensure that Malawi becomes an operating member of the SAPP by getting connected to the regional power pool.

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