The Government of Malawi (GOM), International Financial Corporation (IFC), Scatec and EDF signed on Tuesday a binding commercial agreement under Malawi’s Public-Private Partnership (PPP) framework to undertake the co-development of the 350-megawatt (MW) Mpatamanga hydropower project.

The agreement involves financing, development and operation of the hydropower facility, composed of a 309 MW peaking plant and a 41 MW downstream plant - located on the Shire river, Scatec said in a press statement.

The statement said Scatec, and its venture partners British International Investment (BII) and Norfund, and EDF will own 55 percent of the project, with ownership split between EDF (27.5 percent), Scatec (14 percent), venture partners (13.5 percent).

The Government of Malawi will own 30 percent, and IFC 15 percent of the total project shareholding.

Mpatamanga will deliver electricity to approximately two million people and save 520,000 tonnes of CO2 emissions per year.

SDC Code: 3622431158

(Writing by SA Kader; Editing by Anoop Menon)