The Mpatamanga Hydropower Storage Project is located on the Shire River in southern Malawi. The Shire is the largest river in Malawi and a tributary of the Zambezi. The development comprises two cascading hydropower generating stations approximately 6 km apart, each with its own substation, together with two transmission lines. The project is structured as a Build-Own-Operate-Transfer (BOOT) scheme implemented by Mpatamanga Hydro Power Limited (MHPL) as the project company.
The project is financed by an IDA grant together with the International Finance Corporation (IFC), other financiers and the project developers. The World Bank project number is P165704, the implementation agencies are the Ministry of Energy of Malawi and MHPL, and the project was approved in May 2025 with a planned closing date of June 2031.
Malawi's power supply has long relied primarily on hydropower and is exposed to hydrological variability. By adding cascading hydropower generating capacity together with associated transmission and substation facilities, the project increases generation capacity and supply reliability in southern Malawi and provides regulation capability to the regional grid.
| Item | Content |
|---|---|
| Stage of Procurement | This Initial Selection concerns the Pre-Construction Services (PCS) stage and forms the first step of the award process for the EPC contract of the Mpatamanga Hydropower Storage Project; successful applicants enter the Pre-Construction Services Agreement (PCSA) process |
| Works Comprised | Two cascading hydropower stations approximately 6 km apart with a combined installed capacity of 365.6 MW (a 306 MW plant and a 59.6 MW plant), each with its own substation, plus two transmission lines |
| Selection Arrangement | The employer intends to qualify and select between one and three contractors to enter into Pre-Construction Services Agreements |
| Access to Documents | The Initial Selection Document is made available free of charge in electronic format in the employer's virtual data room (VDR). Applicants must first email MHSP_PCSA_InitialSelection@mhpl.mw and accept a Non-Disclosure Agreement (NDA) before first access. The VDR opens on 21 Sep 2026 |
| Qualification Criteria | Minimum qualification requirements and evaluation criteria are stated in the Initial Selection Document, covering eligibility, financial capacity, technical capability and Target Price, among other items |
| Submission Method | Only electronic submission of applications is permitted; late applications will not be accepted |
| Site Visit | A site visit will be conducted from 12 to 15 October 2026 in Blantyre and at the project site |
| Item | Content |
|---|---|
| Contract Model | The project is implemented on a Build-Own-Operate-Transfer (BOOT) basis, with MHPL as the project company |
| Power Purchase Arrangement | The project is supported by a long-term Power Purchase Agreement (PPA) of 35 years, comprising a five-year construction period and a 30-year operating period, with a capacity-based tariff |
| Payment Guarantee | The payment obligation under the PPA is guaranteed by the Government of Malawi |
| Bid Security | No bid security is required at the Initial Selection stage. At the subsequent EPC tender stage, a bid security or a bid-securing declaration is normally required, in the form and amount specified in the bidding documents |
| Performance Security | At the EPC contract stage, the successful contractor is normally required to furnish a performance security after receipt of the Letter of Acceptance. Such securities are commonly in the order of 10% of the contract price and are normally to be furnished within 28 days of receipt of the Letter of Acceptance |