The African Development Bank (AfDB) Group approved, on March 25, 2013, a grant amounting to US $3.04 million to finance the Kholombidzo Hydroelectric Power Plant (HPP) Feasibility Studies in Malawi. The Government of Malawi will contribute US $0.23 million (7%) of the total study cost of US $3.27 million.

The grant aims to produce a full bankable feasibility study for the future development of a power generation project to contribute to the expansion of electricity generating capacity in Malawi, which would ultimately help to address electricity shortages and enable the delivery of reliable energy and electricity access expansion in Malawi.

The study is consistent with the objectives of the Malawi Growth and Development Strategy II (MGDS II) which emphasizes the importance of putting in place a foundation for long-term economic growth through improved infrastructure and investment climate.

By supporting the study, the African Development Fund will be contributing to facilitating investment in the provision of electricity needed for supporting economic growth and poverty reduction. The initiative also presents an opportunity for knowledge sharing from previous experiences in other member countries.