World Bank approves grant for Malawi’s 358.5 MW hydropower project

The World Bank has approved a USD350 million grant for the Mpatamanga Hydropower Storage Project (MHSP) in Malawi. The funding was cleared by the International Development Association (IDA), a part of the World Bank Group.

The 358.5 MW project was co-developed by the Government of Malawi and the International Finance Corporation under a public-private partnership model. The total expected cost exceeds USD1.5 billion, including financing during construction.

Once operational, the project is expected to generate 1,544 GWh of clean electricity annually. It includes the development of main and regulating dams on the Shire River, which will provide both clean energy generation and storage for supply during peak demand periods.

MHSP aims to improve Malawi’s installed generation capacity and reduce reliance on diesel and other fossil fuels. The World Bank highlighted the project’s potential to support economic growth across sectors such as mining, agri-business, and tourism by ensuring a stable power supply.