Investment Projects


Blantyre Waste to Energy

Project Ownership
The Project is owned by a subsidiary of the Malbro Investment group (MIG), Afro Renewable Energy Group (AREG) a duly registered Malawian Company.
Business Model
The business model entails production of energy (electricity) and selling that to the single power offtake, Power Market Limited (PML).
Objective of the project
The objective of the Project is to contribute to the Government’s goal of eradicating power deficits in the country and promoting industrialisation.  
Sector of Operation                                   
Business Activity
Intend to develop waste-to-energy plants, deploying technologies that extract residual energy from municipal solid waste and convert that into electricity, which is subsequently fed into the grid. The German technology developed by Intec can use a very wide variety of unsorted waste. The project will generate 438 Gigawatt Hours.
Technology, system and methods are based on the patented Thermolytic Cracking Process, an economically and ecologically proven system. The plant will be designed to be operated 24 hours a day continuously. Guarantees for technology and plant are available from international insurance. The plant will be designed to be operated 24 hours a day continuously. The planned size of the plant is 50MW (~438 GWh per annum) output from an annual waste volume of 198,000 tons. Production of energy from Solid Municipal Waste (SMW) and selling of the produced energy to Power Market Limited.
Competitive Advantage/gap analysis
There are many technologies currently existing on the market. The technology that the Project Developer intends to use is unmatched in terms of production, efficiency and environmental considerations.
The technology is environmentally friendly and has passed the relevant environmental licenses in Germany and the European Union.

Actual location of project
The proposed location of the Project is Blantyre, Malawi.
Prominent business activity surrounding your place of operation
The proposed project location is an urban area. The project will be surrounded by the businesses and commercial activities of Blantyre Urban.

Contribution to achieving national, regional or global economic, social, environmental and developmental goals
The project is a private sector-initiated development and shall therefore relieves the government of Malawi on the need and pressure to put development spending in energy power generation infrastructure. Such Project development capital can be used by Malawi government to improve on the transmission and distribution network infrastructure, roads, healthcare and schools. The project shall also help Malawi to minimize on any borrowings towards power plant infrastructure development thereby reducing the country’s debt burden from multilateral institutions, Commercial Banks or public domestic debts. The project will further support attainment of sustainable development goals.
Export orientation/forex generation/import substitution
The proposed Project will augment the country’s efforts with energy security above the country’s desired safety margin of 30% and go towards reducing interdependence on energy importation from neighboring countries like Mozambique, Zambia or Tanzania. In the long run, at the full production capacity of 100MW, any excess or unused capacity can be exported to the neighboring countries under the Southern Africa Power Pool, a cooperation of the national electricity companies in Southern Africa under the auspices of the Southern African Development Community (SADC).

Capital Expenditure Requirement
The CAPEX requirement is approximately US$180 Million.
Working Capital Requirement
The working capital requirement of approximately US$5 Million.
Proposed Financing Structure
The proposed finance structure is 100% debt.

Financing of the project and the construction of the plant occurs in two phases. Firstly, development capital is required for the licensing phase. In the second investment phase, all funding required for the construction of the plant, including land, buildings and bridge financing upfront fees will be raised at once, the financial close of the project. No further capital injections will be required beyond that point.

Technical Feasibility
The technical Feasibility documents have been completed by the Project Developer/Promoter.
Feasibility Study
The Project Feasibility study was undertaken and completed by the Project Developer/Promoter.
Environmental Impact Assessment
The Project EIA has not been completed yet. However, the Project Developer completed the Project Environmental Brief which was duly submitted to the Department of Environmental Affairs. The EIA Process is underway and it is expected that the same will be completed by Q4 of 2021.
Technical Designs,
Technical, Engineering and Architectural designs have been completed.
The Project is yet to obtain relevant permits and licenses; IPP License, Generation License, EIA, Building Permit and Operational Permits.
Market Feasibility Study
Energy is unique in that there is a single buyer, in this case Power Market Limited. There is not much of a marketing aspect/perspective to this nature of Project.
Financial Feasibility
The Project has an unlevered IRR of 12% and a Levered IRR of 7%, Net Present Value is approximately US$271 Million, Payback period is 10 years

Noel Maluza: +265 999 916 106. Anthony Tasosa: +265 999 92 13 24. Alexander Maluza: +265 994 424 786
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