Electricity Supply Corporation of Malawi (Escom) is in the process of evaluating bids for the second phase of the K7 billion worth Kapichira Hydro project.

Escom Public Relations Manager, Kitty Chinseu, said Wednesday the bids include four from international companies.

The project involves installation and commissioning of two hydro generating sets with total power output of about 64 megawatts and associated ancillary equipment, according to Chinseu.

The project also involves construction of a transmission line from Kapichira Power Station to Blantyre and associated substation equipment.

She said the total project cost is estimated at K7 billion to be funded by government through a long term soft loan to the hydropower company.

“Escom and the Government are in the process of identifying a contractor to carry out the required works.

Evaluation of the technical proposals has been completed, and a ‘No Objection’ is being waited from the Government,” said Chinseu adding that Financial proposals will be evaluated as soon as the ‘No Objection’ is received from the Government,” she added.

Chinseu said the contract to carry out the works at Kapichira would be awarded to the organisation whose bid is the most responsive to Escom’s tender documents.

“It has been estimated that the project will take about 30 months to be completed. It is our hope that the two units will be commissioned and connected to the Grid sometime in 2012,” said Chinseu.

The project is likely to ease pressure on power supply as the state-owned company struggles to satisfy the market.

Business captains have often blamed slow industrialisation on inconsistent power supply as black outs have become the order of the day.

A delegation of directors on finance from the African Development Bank who visited the country last week said Malawi’s investment in the energy sector leaves a lot to be desired and called for efforts to strengthen the sector.

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