Malawi – Rehabilitation of the Kapichira and Nkula Hydropower Plants

The Rehabilitation of the Kapichira and Nkula B Hydropower Plants Project is a sovereign investment operation aimed at restoring the operational reliability and efficiency of two major hydropower plants in Malawi. The total project cost amounts to UA 87.44 million (USD 118.75 million equivalent). Financing is structured as parallel co-financing between the African Development Bank Group and European partners. The African Development Fund (ADF-16) provides a grant of UA 16.89 million (USD 22.94 million) to finance the rehabilitation of Kapichira I. The European Union contributes a USD 44.4 million grant, and the European Investment Bank (EIB) provides a USD 48.9 million loan to finance the replacement and rehabilitation of Nkula B. The Government of Malawi contributes approximately USD 2.52 million in cash and in-kind. The project is implemented by the Electricity Generation Company of Malawi (EGENCO) under the supervision of the Ministry of Energy and aligns with Malawi 2063, the Malawi Energy Compact under Mission 300, and the Bank’s “Light Up and Power Africa” priority.