(Ecofin Agency) - Malawi’s power utility EGENCO signed with Japanese firm Mitsubishi Corporation a contract to boost its power output by 18MW. The related project received a $52 million subsidy from the Japanese government via its international cooperation agency.
Under the agreement, Mitsubishi will, starting next October, begin the construction of a hydropower plant at Tedzani. The project is expected to be completed by 2020.
“Together with Calik Energy (Exclusive subcontractor) we have a vast experience especially in the Middle East. This is our first project in Africa and so we want to make it successfully done”, said acting general manager of international economic corporation of Mitsubishi Corporation, Masato Kume,
According to William Liabunya, CEO of EGENCO, the deal is a major achievement for both the company and Malawi. He also recalled that another project, Nkula A, is actually ongoing and should be completed by 2018, adding 12MW of electricity to the country’s production capacity.