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Govt. Insists AGGREKO Contract Not Sustainable In a Long Term.

Govt. Insists AGGREKO Contract  Not Sustainable In a Long Term.

The meeting on decommissioning of diesel powered company generator set, Aggreko took place in the Capital Lilongwe on April 20, 2022 and Minister of Energy Ibrahim Matola presided over the function to iron out misconceptions surrounding the matter.

During the press conference, Matola told the nation that among other issues it is fictitious that the end of Aggreko contract with Malawi Electricity Corporation of Malawi (ESCOM) will affect power supply in the country.

Matola said that government has put in place significant measures aimed at enabling ESCOM carry out its noble
duties efficiently and effectively to reduce persistent blackouts.

He disclosed that President Lazarus Chakwera is soon expected to commission solar power energy in the country that will add up to 60 megawatts to the grid.

Matola further explained that the machine that government has procured at Kanengo in Lilongwe is on standby and will assist when the situation gets worse.

“In 2017, the country was short of 78 megawatts to supply electricity to the users and since Aggreko had a capacity to supply electricity, it was awarded the contract to supply the shortfall,” he said, adding that Electricity Generation
Company (EGENCO) will take over from where Aggreko has stopped. Matola also hinted that the contract between Aggreko and ESCOM was poorly negotiated and hence could not be sustained in the long term.

“During the entire period Aggreko has operated in the country, they have given us only two percent of our energy needs but they have pocketed seventeen percent of total revenue. This is not sustainable in the long term,” clarified

However, in a separate interview, our source at ESCOM who spoke on condition of anonymity said that government
has erred to end the Aggreko contract, saying the move will contribute to more blackouts in the country.

The source while also admitting that Aggreko was expensive, argues that instead, government would have speeded up the rehabilitation works at Kapichila power plant in Chikwawa that was swept away by cyclone Anna before terminating the contract with Aggreko to maintain and enhance power supply in the country.

“Aggreko was always available especially when the situation got worse. These are serious people and they could easily respond quickly when needed,” he said.

But after touring Kapichila site to appreciate the work progress recently, EGENCO boss William Liyabunya said
the team is working tirelessly to bring back the lost megawatts.

Of late, President Lazarus Chakwera and a Mozambican President Philip Nyusi laid a foundation stone that marked the launch of power interconnector project at Tete in Mozambique to increase energy capacity in Malawi.

President Chakwera on his return from Mozambique said among others, the project will enable Malawi being connected to the southern Africa power pool and the project will also help Malawi to import fifty megawatts from