By Chancy Namadzunda:
Leader of Opposition in Parliament Kondwani Nankhumwa has written President Lazarus Chakwera advising him to ask the Malawi Energy Regulatory Authority (MERA) to tap money from the Malawi Rural Electrification Programme (MAREP) Fund for the rehabilitation of Kapichira Hydro Power Station.
In a letter dated August 24, 2022, Nankhumwa said government can use funds which MAREP generates every year for the past two years, whichhave been dormant.
Recently, Parliament approved a K60 billion loan for the rehabilitation of Kapichira Power Station.
“Whereas this is good news, I am aware that the process of getting a loan from international financial institutions, including Bretton Woods Institutions such as the World Bank takes time, and it may be months before funds are released.
“In fact EGENCO, during its audience with the joint committees of Parliament, estimated that the soonest Kapichira Power Station may come back online is on 22nd December this year. This is also on the assumption that all key variables are in place. Experience, however, taught us that all variables are not always in their place in Malawi, and that it may take even longer before the issue of blackouts is fixed.
“Meanwhile, people continue to suffer relentless load shedding. The economy is not moving because businesses have no power and have stalled. Small-scale business operations such as hair dressing salons; barber shops, grain millers, and others have literally stopped due to lack of electricity.
“Your Excellency, I do not need to emphasize that power is integral to an economy and we cannot begin talking about social and economic development in an economy that does not have electricity. We cannot talk of attracting serious investors to an economy with intermittent power supply.
“Indeed, Your Excellency, one would wonder how your government will achieve its most talked about quest to create jobs for millions of youths in this country without power. Mr. President, this country is in a crisis,” said Nankhumwa
He said MAREP generates K20 billion every year and for the past two years and by now this funding purse is estimated to have over K50 billion considering that MAREP Phase 9 has not been rolled out due to issues of corruption in the awarding of tenders.
“EGENCO indicated that the rehabilitation project for Kapichira Hydro Power Station would require about K15 billion if taxes were not imposed on equipment and K17 billion with tax.
“I would like to make an appeal to you, Your Excellency, to ask the Malawi Energy Regulatory Authority (MERA) to tap from the MAREP Fund for the rehabilitation of Kapichira Hydro Power Station. Of course, MERA will have to first disclose how much money it has in this resource envelope for transparency and accountability sake.
“Your Excellency, your government cannot be waiting for money from somewhere else to solve this electricity crisis when MAREP has money just lying idle. This money is enough to rehabilitate the Kapichira Hydro Power Station as a crisis measure while processes to obtain money from the World Bank or elsewhere are obtaining. The reconciliation can be done later.
“You must note, Your Excellency, that there cannot be any MAREP without a solid ESCOM or EGENCO because MAREP thrives on the backbone of these two institutions. Let us, therefore, start by solving the Kapichira Hydro Power Station problem first before we can extend electrification to other areas through MAREP.
“This power crisis, Your Excellency, must be attended to with speed because already, we have lost time. I hope this is a timely suggestion, and I pray that it is implemented without delay,” said Nankhumwa.
