One of the Independent Power Producers (IPPs) Atlas Energy has confirmed holding negotiations with the Millenium Challenge Corporation (MCC) and Power Africa Transactional Advisor to pave way for a Power Purchase Agreement (PPA) with the Electricity Supply Corporation of Malawi (Escom).
Government signed a Memorandum of Understanding (MoU) with 27 IPPs agreeing on areas of collaboration in power generation in 2011.
Power Africa engaged a Transactional Advisor to help Escom in negotiating the power purchase agreement and according to Atlas Chairman, Konrad Buckle, the Power Purchase Agreement has been documented.
Buckle, however, said the two sides are still negotiating the deal while awaiting for technical experts to direct the next step.
“We are currently in the middle of the negotiations between the advisor and Atlas. We hope that within the next month or so, we could complete the PPA. We have all the other grantees and finances in place inclusive of the land and the engineering, all we are waiting for is the signing,” said Buckle.
When complete, the project will add 50 megawatts to the national grid and Buckle said his company is doing everything possible to ensure that the work is completed in the most minimum time possible.
“We are glad that Escom has embraced the idea that Malawi needs extra power and they are doing everything possible to increase the power production in the country.
“We have engaged Germany engineers to assist both Atlas and Escom to finalise the PPA so that utility scale solar plant in the country is a success,” said Buckle.
On how long it will take the company to build the plant, Buckle said it should take eight months to complete the structure. Early this year, the Ministry of Land allocated land to Atlas in Lilongwe for the solar project.
Atlas is among the 27 Independent Power Producers that signed a memorandum of understanding with the government. The companies are now waiting to sign power purchase agreements with Escom to roll out their projects.
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