WORLD BANKThe World Bank is supporting ESCOM’s development plan with USD 84.7 million.

This will be used to help finance:Urgent Investment in the network (USD 56 million.) Some of the most urgent works not covered by the MCA Compact to rehabilitate, upgrade and expand the exist-ing transmission and distribution network.

Feasibility studies (USD 15 million) for the expansion of the main 400kV Transmission Backbone from Lilongwe to Karonga in the north; and for the development of an additional 200–380 MW of new hydropower generation capacity

Measures (USD 13.7 million) to better manage energy demand and to train and provide expert support to both the Ministry of Natural Resources, Energy & Mining and ESCOM in help with their efforts to further develop Malawi’s energy sector. (USD137)

Works on existing infrastructure The work on priority weaknesses in the the transmission and distribution grid will reduce technical losses, improve

voltage stability and improve the reliability of supply for customers in major urban areas in Lilongwe, Blantyre,

Zomba and Mzuzu. This will be achieved through the following investments:

1. Strengthening & Expansion of networks Construction of four new substations and associated lines;

Upgrading of five existing substations;

Construction of new 33kV & 11kV lines and installation of capacitor banks;

Rehabilitation of 33 kV lines; (e)

Rehabilitation of underground cables;

Extension of the peri-urban network;

Acquisition of generation spare parts.

2. Reinforcement of Low Voltage Reticulation network (overhead power lines):

Reconfiguration and extension of medium voltage overhead lines (11kV and below) supplying

distribution transformers

Installation of approximately 111 new distribution transformers

Construction of new three-phase low voltage overhead lines and conversion of single-phase to three-phase

low voltage overhead lines

This component will also involve significant capacity training to upgrade the skills of ESCOM staff in safety and

line design, construction and maintenance procedures.

3. Generation & Transmission Feasibility and Design Studies The feasibility studies for the new hydroplants will include technical, engineering design & economic assessments and Environmental and Social Impact Assessments. Where necessary environmental and social mitigation/management plans will also be developed. Priority will be given to developing up to the detailed design stage a 100 – 140 MW hydropower plant in the north of the country.

The feasibility study for a new ‘inland’ 400 kV to the north will greatly expand the capacity to supply electricity to this region and hence develop the industrial and mining capacity of the area. Since there is only one line to the north, any unplanned outages or scheduled maintenance cuts off the northern region. This main internal 400kV Backbone will also allow Malawi to be interconnected with all its neighbors (Tanzania, Zambia and Mozambique) and the region and thus be able to trade power in the Southern Africa Power Pool (SAPP). This will allow Malawi to attract private investors in the power sector to develop generation capacity in Malawi with a focus on a regional market. The new ‘inland’ transmission backbone line would run north from Lilongwe via Kasungu to Mzuzu on the western side of Malawi (approximately 350km) and Karonga. From there it could interconnect with Tanzania. The project will also fund feasibility studies for:

The possible development of an additional 200–380 MW of new hydropower generation capacity in Malawi.

WORLD BANK