The Multilateral Investment Guarantee Agency (MIGA) has issued guarantees that will support the development, construction and operation of a new 60 MW solar photovoltaic plant in Salima, a province in the central region of Malawi. The guarantees, issued to JCM Power International and InfraCo Africa Ltd. and amounting to US$58.58 million, cover 90 percent of the equity investments in the Project for up to 20 years. These guarantees provide protection against risks of Transfer Restriction and Breach of Contract. The Project is supported by IDA 18 PSW MIGA Guarantee Facility.
The Project will become one of the first Independent Power Producers in Malawi and will add a new source of energy supply in the country, where electrification rates are among the lowest in the world, and 98% of total installed generation capacity is dependent on hydropower and vulnerable to the impacts of climate change. This Project is MIGA’s first engagement in Malawi.