World Bank approves $350 million grant for Malawi hydropower project
The World Bank said in a statement late on Thursday that the Mpatamanga Hydropower Storage Project would help supplyelectricity to over 1 million new households and create thousands of jobs.
The public-private partnership with an expected overall cost of over $1.5 billion will represent the largest foreign direct investment in Malawi's history.
Malawi's IMF programme ends after only $35 million disbursed
In September 2022 the Malawian government selected a consortium consisting of Electricité de France and SN Malawi BV owned by British International Investment, Norfund and TotalEnergies to lead the project's development and implementation.
The project will have a total generation capacity of 358 megawatts, doubling Malawi's installed hydropower capacity by building two dams along the Shire River between two existing hydropower facilities, according to its website.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
8 hours ago
- Business Recorder
Pakistan launches PRISM+ to upgrade payment and settlement system
The State Bank of Pakistan (SBP) launched its upgraded payment and settlement system, PRISM+, on Tuesday. 'Previously, we launched RAAST, Pakistan's instant payment system. With today's launch, Pakistan joins those few countries whose retail and large value payment systems and other infrastructure are based on the latest ISO standard,' said SBP Governor Jameel Ahmad, while addressing the launching ceremony. The central bank chief acknowledged the contribution of the World Bank in bringing 'this project to life'. 'Today, our financial landscape is rapidly digitising across payments, fintech, e-commerce and banking. We see innovation driving change both in service delivery and consumer preferences'. He said the recent digitisation of the ecosystem is visible in the emergence of retail payment infrastructure, i.e. RAAST. SBP chief says low domestic savings key structural challenge RAAST is Pakistan's first instant payment system that will enable end-to-end digital payments among individuals, businesses and government entities instantaneously. Ahmad informed that Pakistan has over 225 million bank account holders and digital wallet holders, of which around 96 million are unique. 'We have 28 million registered users of banking apps of commercial banks, 71 million users of branchless banking apps and 17 million users of the internet banking platform,' he said. The central bank chief highlighted the RTGS [Real Time Gross Settlement], a system for transferring large sums of money between banks in real-time. 'It ensures liquidity flows and supports the implementation of monetary policy through open market operations (OMO). The RTGS minimizes the risk of financial disruptions,' he said. Talking about PRISM [Pakistan Real-time Interbank Settlement Mechanism], the RTGS used in Pakistan, Jameel shared that in 2024, PRISM processed transactions worth Rs1,043 trillion. 'To put this in perspective, PRISM processed transactions 10 times the country's GDP,' he said. 'This shows the extent to which the PRISM supports the broader financial industry, especially our business community. 'With the implementation of PRISM+, we now move toward the next stage of progress. This system is built on the ISO 2022 financial messaging standard, which supports structured and data-rich financial communications.' He said PRISM+ also offers enhanced transparency, interoperability and automation across the payment and settlement ecosystem. 'This new platform also introduces advanced features, including liquidity management tools for smooth funds flow,' he said. Jameel said Pakistan's payment system now stands at par with global best practices. 'As we expand our digital payment infrastructure, security remains our key regulatory priority,' he said. Jameel emphasised that Pakistan's financial system must remain secure, transparent and trusted. He informed that PRISM+ was completed and went live in 14 months. 'PRISM+ is not just a technical system; it is a strategic asset to safeguard financial stability and support innovations of the new digital age,' he concluded.
Business Recorder
15 hours ago
- Business Recorder
Flood warning systems: PTI accuses govt of wasting $188m in World Bank funding
ISLAMABAD: Senior Pakistan Tehreek-e-Insaf (PTI) leader and former National Assembly speaker Asad Qaiser on Monday accused the federal government of wasting $188 million in World Bank funding intended to upgrade Pakistan's flood warning systems in the aftermath of the devastating 2022 floods. The funds were allocated under the Integrated Flood Resilience and Adaptation Project (IFRAP), a World Bank-backed initiative aimed at modernising the country's flood forecasting capabilities, including the installation of advanced radar systems to provide early warnings to at-risk communities. Nearly three years later, however, little progress has been made. 'These radar systems were supposed to revolutionise our meteorological infrastructure and save lives,' Qaiser said. 'But the government hasn't even completed the tendering process. This delay has directly affected our ability to warn communities during the recent monsoon floods.' The 2022 floods – among the worst in history of the country – killed over 1,700 people, displaced millions, and caused an estimated $30 billion in damage. In the aftermath, international lenders pledged significant support, but critics say poor coordination and bureaucratic gridlock have stalled critical recovery efforts. Officials familiar with the project cite a lack of coordination between the Pakistan Meteorological Department (PMD) and the Ministry of Planning and Development, headed by Ahsan Iqbal, as a major cause of the delays. Qaiser said he plans to raise the issue in parliament and directly with the World Bank, criticising what he called a 'troubling silence' from both the lender and the government. 'Implementation has stalled, and the World Bank has yet to publicly respond to the government's failure to deliver on its loan commitments,' he said. Prime Minister Shehbaz Sharif has yet to comment publicly on the issue, despite ongoing flooding across rural areas – including last week's flash floods in Khyber Pakhtunkhwa, Gilgit-Baltistan, and Azad Kashmir, which claimed more than 650 lives. 'This is not just a natural disaster – it's a governance failure,' said a senior Planning Ministry official familiar with the project. While the National Disaster Management Authority (NDMA) has launched Pakistan's first weather satellite and partnered with private weather firms, experts warn that without a functioning radar network, such efforts are insufficient. As the current monsoon season causes further destruction, pressure is mounting on the government – and its international partners – to act on the pledges made after the 2022 crisis. Copyright Business Recorder, 2025
Business Recorder
15 hours ago
- Business Recorder
CPEC debt relief: No free pass
The fate of the Rs1,275 billion power sector circular debt settlement—through refinancing the amount by 18 banks to disburse to the companies in the power sector chain, including Chinese IPPs—is contingent upon Chinese government approval. Authorities are hoping the PM will get the green light during his upcoming visit to China. The plan has been approved by the IMF on the assumption that all Late Payment Surcharges (LPS) will be waived. One of the reasons the Fund approved the plan is that it includes a form of rescheduling (or reprofiling) of the power sector debt within CPEC. However, if the Chinese do not agree, chances are the IMF may not entertain any revised plan that excludes the waiving of Chinese LPS. The Chinese may be reluctant to accept this based on optics. If they allow CPEC loans to be altered, it could set a precedent for the 50-odd other countries under the BRI to ask for relief. Some people say the Chinese may do it for us, as they have done some reprofiling in the case of nuclear power plants (K2 and K3 loans). However, that is a different story, as K2 and K3 are not part of CPEC. Thus, the widespread view is that the Chinese may not accept the proposal, based on optics, to avoid setting the wrong precedent for other borrowing countries. However, if we get lucky and China agrees to waive full (or partial) LPS, this may come with new—and perhaps harsher—conditions, IMF-style, which will be non-negotiable in the future. The question is what type of conditions the Chinese may apply, and whether these will be acceptable for us. Sources close to the Chinese say that one requirement could be to open a revolving account for IPPs under CPEC. This would ensure timely payment of all capacity charges going forward, and in case of non-compliance, it might effectively be treated as a default on due payments. This would mean invoices generated for August 2025 payments must be released within October 2025 to avoid any further delay and prevent additional LPS going forward. In effect, no new circular debt would be created in the future. That would be a tough condition, and given history, it is difficult to commit to payments for the next 10–20 years. If that happens, the Chinese may start repatriating dividends in large chunks. That would be different from the current situation, where IPPs get unsecured credit against pending payments. There could also be a second condition on the upfront tariff, as well as requirements to ensure the security of Chinese nationals in Pakistan. Sources say that even with all these conditions, the Chinese may, at best, accept a 50 percent waiver—against the government's wish for 100 percent. And if the government delays any payment in the future, the waived LPS could become part of the due payments. That is a slippery slope, as China must keep the overall BRI in mind during negotiations. There will be no carte blanche. Fingers crossed.
