Consultancy Services to Support Power Supply Agreement Negotiations — Ministry of Natural Resources, Energy and Mining (Malawi)

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MINISTRY OF NATURAL RESOURCE, ENERGY, AND MINING

REQUEST FOR EXPRESSION OF INTEREST

(CONSULTING SERVICES- INDIVIDUAL SELECTION)

CONSULTANCY SERVICES TO SUPPORT THE POWER SUPPLY AGREEMENT NEGOTIATIONS

Country: Malawi

Name of Project: Mpatamanga Hydropower Storage Project (MHSP)

Procurement Reference Number: MW-MOE-521669-CS-INDV

Issued date: 13th December, 2025

• Introduction

The Government of Malawi (GoM), through the Ministry of Natural Resource, Energy, and Mining, is implementing the Mpatamanga Hydropower Storage Project (MHSP), a 358.5 Megawatts (MW) public-private partnership project designed to enhance Malawi’s power generation capacity and reliability. The project comprises a 301 MW Main Dam and a 57 MW Regulating Dam on the Shire River, about 50 km west of Blantyre. The Ministry intends to engage an experienced consultant to provide support for the Power Supply Agreement (PSA) negotiations between ESCOM and potential off-takers in the Southern African Power Pool (SAPP) and domestic mining companies.

• Objective of the Assignment

The main objective of this consultancy is to provide technical and commercial support to the Ministry and ESCOM in sourcing, evaluating, and negotiating PSAs with domestic and regional off-takers, including SAPP market aggregators and mining companies, in line with international best practices and World Bank procurement guidelines.

• Scope of Work

The Consultant will perform the following key tasks:

• Pre-Negotiation Support:

• Assess ESCOM’s readiness for PSA negotiations and identify capacity and regulatory gaps;

• Review SAPP market rules, trading arrangements, and access conditions relevant to Malawi;

• Evaluate transmission capacity via Malawi–Mozambique and Malawi–Zambia interconnectors;

• Identify potential SAPP market aggregators and credible bilateral off-takers.

• Develop market-sounding materials and draft term sheets for discussion with off-takers; and

• Conduct market soundings, analyze feedback, and develop negotiation strategies reflecting risk allocation preferences.

• Negotiation Support

• Support direct negotiations with shortlisted SAPP aggregators or off-takers;

• Draft and review PSA contract terms ensuring commercial soundness and risk balance;

• Provide advice on pricing formulas, delivery schedules, payment security, and performance guarantees;

• Evaluate foreign exchange (FX) exposure, settlement mechanisms, and propose risk mitigation options; and

• Support the design of institutional and governance arrangements for PSA implementation.

• Negotiations with Mining Companies:

• Review existing and draft PSAs with mining companies to ensure bankability and risk alignment;

• Recommend tariff structures, pricing mechanisms, and FX indexation models; and

• Develop standardized negotiation templates and model PSAs.

• Capacity building through provision of hands on training for ESCOM and Ministry staff.

• Outputs/Deliverables

The Consultant shall deliver the following outputs:

• An Inception Report, Stakeholder Engagement Plan, and Work Plan produced within two (2) weeks of contract signing;

• A Market Analysis Report covering potential SAPP aggregators and off-takers produced within one (1) month;

• A Marketing and Outreach Brief, positioning Malawi’s clean energy exports produced within one (1) month;

• Draft PSA and negotiation support documents produced within two (2) months;

• Finalized PSA contracts and supporting documents produced within four (4) months;

• A Capacity Building Workshop conducted within five (5) months; and

• A Final Report produced within five (5) months.

• Qualifications and Experience

The Consultant shall possess the following qualifications and competencies:

• A minimum of either Bachelor’s Degree in Electrical Engineering, Renewable Energy, Energy Economics, Economics, or Business Administration specialized in Marketing. Master’s degree will be an added advantage;

• Minimum of 10 years of professional experience in power trading, cross-border electricity sales, or commercial operations;

• Experience in PSA/PPA negotiations and SAPP market participation;

• Familiarity with Malawi’s electricity market and regional power pool regulations;

• Strong analytical, negotiation, and institutional capacity-building skills; and

• Excellent communication and report writing skills in English.

• Duration and Reporting

The duration of the assignment is six (6) months with an estimated 120 person-days. The Consultant will report to the Project Coordinator at the Ministry of Natural Resource, Energy, and Mining and coordinate closely with ESCOM’s Chief Operations Officer, the System and Market Operator (SMO), the Single Buyer, MERA, and the World Bank team.

• Conflict of Interest and Confidentiality

The attention of interested consultants is drawn to Section III, paragraphs 3.14, 3.16, and 3.17 of the World Bank’s Procurement Regulations for IPF Borrowers (February, 2025), setting forth the Bank’s policy on conflict of interest. Consultants must provide independent services and maintain strict confidentiality of project documents and discussions.

• Submission of Expressions of Interest

Interested individuals meeting the qualifications are invited to submit their Expressions of Interest (EOI), including a cover letter, detailed CV, and copies of academic and professional qualifications. EOIs must be delivered in written form or via email by 13th January, 2026 before 14:00 hours local time to the address below:

Address for Information and Clarifications:

The Chairperson, Internal Procurement and Disposal Committee

Ministry of Natural Resource, Energy, and Mining.

Department of Energy

Mpatamanga Hydropower Storage Project (MHSP)

Private Bag 309, Lilongwe 3, Malawi

Email: [email protected] copy: [email protected]

For Expressions of Interest Submission:

The Chairperson, Internal Procurement and Disposal Committee

Ministry of Natural Resource, Energy, and Mining

Department of Energy

Mpatamanga Hydropower Storage Project (MHSP).

Lilongwe, City Centre, Capital House, Room number 205.

Private Bag 309, Lilongwe 3, Malawi

Emails: [email protected] copy: [email protected]