Power generator-EGENCO has disclosed it is still struggling to find financing for the rehabilitation of Kapichira power station-almost three months after it went out of commission.
This follows the washing away of an intake dam at the power plant due to flash floods influenced by cyclone ANA in January.
A spokesperson for EGENCO Moses Gwaza has told MIJ Online that the company is in talks with the World Bank which has expressed commitment to provide a loan for the rehabilitation of the dam as well as a payout from an insurer, however, it will take longer for financing to be processed.
According to Gwaza, the company is failing to utilize its own finances for the rehabilitation as its single power buyer ESCOM is not remitting funds for the purchase of power which is now in excess of over 57 Billion Kwacha.
At the onset of the damage, a number of parliamentary committees visited the site and made commitments to assist in lobbying for government assistance in financing the rehabilitation works.
One such was the parliamentary committee on natural resources which proposed for the government to divert some funds from the Malawi Rural Electrification Project for the reconstruction of the Kapichira in-take dam which is estimated to cost about 18 Billion Kwacha.
However, MIJ Online has learned that there will be no money diverted from MAREP for the rehabilitation works-which means Malawians should wait longer before getting back the 130 megawatts from Kapichira.
Chairperson for the parliamentary committee on natural resources Welani Chilenga has told us that the proposal was rejected by the minister of finance who assured parliament the money will come from the World Bank.