LILONGWE (MalawiTalk) – Minister of Energy Mr Newton Kambalu says government will revoke licences of Independent Power Producers who failed to roll out.
Only three Independent Power Producers out of about 10 prospective companies are implementing their projects in the country.
The revelation comes at a time the Ministry of Energy intends to meet all Independent Power Producers to explain the delay in implementation of work as they are required to.
According to Mr Saidi Banda, Public Relations Officer for the ministry of Energy and Mining, said currently the other Independent Power Producers that were awarded licenses are still doing feasibility studies.
He said one of the companies, JCM is expected to commission its power plant in April this year, but said government is still not impressed with the conduct by other companies.
“There are follow ups on implementation projects by the IPPs – because a larger percentage of them has not started any visible works’’ he said.
Banda has since said that decision on contracts held by nonperforming awardees shall be known after a review expected to be conducted by June this year.
Meanwhile, Dr Grain Malunga one of the country’s energy experts has called on government to revoke licenses of nonperforming IPPs.
As part of reforming the energy sector, the Malawi government opted for IPP for new energy generation capacity.
Most of the interested IPPs are in solar PV, while some coal, heavy fuel oil (HFO), and small hydropower projects are among the candidates.