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Advisory services sought for Lower Songwe dam and hydro project

The Lower Songwe dam and hydro project, is to be developed as a public private partnership. Advisory services are sought for structuring and negotiation of the scheme.

The Secretariat of the Songwe River Basin Commission (S-SRBC), a bi-national entity set up by the Governments of Malawi and Tanzania, has published a general procurement notice for transaction advisory services for the structuring and negotiation of the Lower Songwe dam and hydropower plant project, which is to be developed as a public private partnership (PPP).

The principal objectives of this component of the project, which will be implemented during a period of 24 months, comprise the provision of PPP transaction advisory services for the Lower Songwe dam and hydro plant and capacity building for the structuring and negotiation of commercial transactions with private partners. The services, which are to be financed from the proceeds of a grant of US$ 500 000 provided by the NEPAD – Infrastructure Project Preparation Facility Special Fund (NEPAD-IPPF Special Fund), includes the provision of technical expertise (hydropower, water resources management, environmental and social) to the PPP transaction advisors team to review and update existing studies and analyses, complete due diligence and a PPP transaction plan, develop transaction documents and provide support during the bidding process.

The development of a planned 180 MW hydropower scheme and dam on the river, which lies in the southwest of Tanzania and north of Malawi, and partly forms the international boundary between the two countries, constitutes Phase III of the Songwe River Basin Development Programme, a multi-sectorial plan aimed at fostering cooperation and equitable sharing of benefits of the watercourse as well as enhancing adaptation to climate change, mitigation of potential adverse environmental impacts and the resulting effects on food production. The programme, which was prepared with the support of the African Water Facility and the NEPAD IPPF, both hosted by the African Development Bank, is part of the Southern African Development Community’s Regional Strategic Action Plan on Integrated Water Resources Management. The US$ 829 million programme involves building a multipurpose dam to impound water for an 180 MW hydropower plant, as well as to provide water for an irrigation scheme covering about 3000 ha in each country, and control floods in the densely populated lower part of the basin. Other components of the programme include rural electrification, social infrastructure and institutional capacity building. The programme is expected to generate economic, social and environmental benefits for the people of the Songwe Basin, which covers an area of 4243 km², and is home to a population of more than 341 000 people, as well as enhance food and energy security and boost economic growth on the borders between the countries. The aims of the programme by 2025 are to increase access to electricity for 60 per cent of the people in the basin, increase water supply and sanitation for more than 260 000 people as well as ensuring that more than 5500 families benefit from increased irrigated land and crop yields.

Interested bidders may obtain further information, and should confirm their interest, by contacting: Gabriel M. Kalinga, head of the Secretariat of Songwe River Basin Commission (S-SRBC), PO Box 300, Kyela, Tanzania; Email: gabbykalinga@gmail.com; Tel: +255 754832484.

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