PROJECT DESCRIPTION
The project consists of the design, construction, commissioning and operation of a 100MW coal-fired power station with its associated infrastructure at a site about 16 Km north of Mchenga along the main M1 Road. The thermal plant will comprise two power generating units (each with a rating capacity of 50 MW) fuelled by coal largely from the Mchenga Mine mixed with coals from other mines. The project will be constructed in two phases, the 100 MW being the first phase of a targeted 250MW plant.
The associated infrastructure to the project includes the new Bwengu Substation which is 65km south of the project site, adjacent to the M1 Road; and a 132kV outgoing transmission line from the new power plant to the new Bwengu Substation. According to Fichtner's Feasibility Study Report1/ and from site investigations, it is feasible to connect the project to the backbone at Bwengu. The Power Purchase Agreement soon to be negotiated and signed with ESCOM will confirm the terms and conditions of the main power grid.
LOCATION
CPL-Mchenga coal mining operations are located in the Livingstonia Coalfield in Rumphi District, about 20 km north of Mzuzu the northern capital. The Rukuru Power Plant will be located some 16 Km north of the Mine along the M1 road and about 500 metres from the Lake.
BENEFITS OF THE PROJECT/ALIGNMENT OF PROJECT TO GOVT GOALS
The basic principle of this project is to build a safe and reliable power plant, fully compliant with government regulations and economic development objectives. The plant will be capable of supplying firm baseload power to the main line grid in a manner which will yield both economic and social benefits to the investors and to society as a whole. The country is desperately short of power, which is having an adverse impact on economic growth and development. the project will go a long way in improving security and regularity in supply of electricity and meet the growing demand that currently exists in Malawi. The feasibility study shows the project to be financially and economically viable.
FINANCIAL REQUIREMENTS
A term loan of US$ 146.4 million is sought to fill the project funding gap
PROPOSED INVESTMENT MODEL (ACTIONS REQUIRED/ IMPLEMENTATION ARRANGEMENTS/ CONTRACT TYPE)
The project promoters are seeking Equity/Strategic investors.
PROJECT FEASIBILITY
Below is a list of the milestones that the project promoters have so far undertaken:
The project consists of the design, construction, commissioning and operation of a 100MW coal-fired power station with its associated infrastructure at a site about 16 Km north of Mchenga along the main M1 Road. The thermal plant will comprise two power generating units (each with a rating capacity of 50 MW) fuelled by coal largely from the Mchenga Mine mixed with coals from other mines. The project will be constructed in two phases, the 100 MW being the first phase of a targeted 250MW plant.
The associated infrastructure to the project includes the new Bwengu Substation which is 65km south of the project site, adjacent to the M1 Road; and a 132kV outgoing transmission line from the new power plant to the new Bwengu Substation. According to Fichtner's Feasibility Study Report1/ and from site investigations, it is feasible to connect the project to the backbone at Bwengu. The Power Purchase Agreement soon to be negotiated and signed with ESCOM will confirm the terms and conditions of the main power grid.
LOCATION
CPL-Mchenga coal mining operations are located in the Livingstonia Coalfield in Rumphi District, about 20 km north of Mzuzu the northern capital. The Rukuru Power Plant will be located some 16 Km north of the Mine along the M1 road and about 500 metres from the Lake.
BENEFITS OF THE PROJECT/ALIGNMENT OF PROJECT TO GOVT GOALS
The basic principle of this project is to build a safe and reliable power plant, fully compliant with government regulations and economic development objectives. The plant will be capable of supplying firm baseload power to the main line grid in a manner which will yield both economic and social benefits to the investors and to society as a whole. The country is desperately short of power, which is having an adverse impact on economic growth and development. the project will go a long way in improving security and regularity in supply of electricity and meet the growing demand that currently exists in Malawi. The feasibility study shows the project to be financially and economically viable.
FINANCIAL REQUIREMENTS
A term loan of US$ 146.4 million is sought to fill the project funding gap
PROPOSED INVESTMENT MODEL (ACTIONS REQUIRED/ IMPLEMENTATION ARRANGEMENTS/ CONTRACT TYPE)
The project promoters are seeking Equity/Strategic investors.
PROJECT FEASIBILITY
Below is a list of the milestones that the project promoters have so far undertaken:
- Sign a MOU with the Government of Malawi, through the Ministry of Energy
- Negotiated and signed an EPC Contract with Power China
- Sign a MoU and PPA Term Sheet with ESCOM
- Prepare a Bankable Feasibility Study for review and acceptance by ESCOM
- Prepare a Financial Model for review and acceptance by ESCOM/Power Market Ltd
- Prepare ESIA (advanced stage of completion)
- Sought and got a Partial Risk Guarantee from AfDB (now withdrawn because of pressure from AfD's European and American funders- who have banned the funding of coal)
- Signed O&M contract with Murray and Roberts of South Africa;
- Obtained Financing Term Sheet from Chinese banks for EPC portion of the project;
Financial Feasibility
Internal Rate of Return - 10.2%, Net Present Value – (US$) 27 893 761 and Payback Period - 10.8 years
CONTACTS
Lincoln Bailey, Managing Director, Rukuru Power Company Limited, Suite 21 NICO Centre, Old Town, P.O. Box 635, Lilongwe. Email: This email address is being protected from spambots. You need JavaScript enabled to view it.. Phone: +265 999 828 695/ 888 828 695
Lincoln Bailey, Managing Director, Rukuru Power Company Limited, Suite 21 NICO Centre, Old Town, P.O. Box 635, Lilongwe. Email: This email address is being protected from spambots. You need JavaScript enabled to view it.. Phone: +265 999 828 695/ 888 828 695