Malawi’s infrastructure expansion projects promise PPP opportunities
Malawi has more than $12 billion of active projects. With the onset of the COVID-19 pandemic, PPP as a means to procure much-needed infrastructure has received a lot of impetus in Malawi.
PUBLIC-private partnerships (PPP) are slowly emerging as the preferred procurement method by which governments can rebuild their infrastructures. Malawi is among the current countries offering opportunities for collaborations.
Currently under study are three projects collectively worth $7.7 billion within the country’s transport and energy sectors. Investigations for various initiatives include
- the $1.5 billion Kamuzu International Airport Aero-City,
- the $1.4 billion Nankumba Peninsula tourism project,
- the $1 billion Mangochi International Airport, and
- the $1 billion Nkaya-Mchinij Railway Line rehabilitation
Kamuzu will create a mixed-use development on 369 hectares, including hotels, townhouses, cargo processing, recreation facilities, shopping malls, transport, export processing zone, other special exporting zones, and intend to expand and modernise the airport. Indications are that the project will complete in 2038.
The broader Nankumba Peninsula tourism project involves developing the $290 million Mangochi International Airport located at a holiday resort at Cape Maclear and a logistics park in the area.
The $1 billion Nkaya-Mchinji Railway rehabilitation project sees Malawi investing in two infrastructure sections, namely the 297-kilometre Nyaka section and the 696-kilometre section from Mchinji to the Chipata border. The initiative has been 92% completed.
The country also has $11 billion worth of projects in the planning stage, including initiatives by the Ministry of Education, Science and Technology ($3.9 billion) and the Electricity Supply Corporation of Malawi ($840 million).
Equally interesting for potential PPP initiatives is the $771 million Kam’mwamba coal power station financed by the Export-Import Bank of China and expected to produce 300 MegaWatt and the 200 MegaWatt Kholombido Hydroelectric power station worth $435 million and financed by the African Development Bank.
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