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About MCA-Malawi

The Compact
This MILLENNIUM CHALLENGE COMPACT is between the United States ofAmerica, acting through the Millennium Challenge Corporation (MCC), a United States government corporation,  and the Republic of Malawi,  acting through its government.

1. Project Goal
Millennium Challenge Compact aims to reduce poverty through economic growth in Malawi.

2. Project Cost
$350.7million

3. Program Objective
The collective Program Objective is to

  1. reduce the cost of doing business in Malawi,
  2. expand access to electricity for the Malawian people and businesses, and
  3. increase value-added production in Malawi.

4. Project Objectives

  1. To improve the availability, reliability, and quality of the power supply by increasing the throughput capacity and stability of the national electricity grid and increasing efficiency of hydropower generation through investment in Infrastructure Development Project.
  2. To create an enabling environment for future expansion of the power sector by strengthening sector institutions and enhancing regulation and governance of the sector through investment in the Power Sector Reform Project.
  3. To mitigate the growing problems of aquatic weed infestation and excessive sedimentation in the Shire River Basin to reduce the costly disruptions to Malawi’s hydropower generation through  investment in Environmental and Natural Resource Management Project.

In April 7, 2011, the Government of Malawi and the Government of the United States acting through the Millennium Challenge Corporation signed the US$350.7Million grant, known as Compact funds, for investment in the energy sector.  In December 2008, The Malawi Government designatedMillennium Challenge Account-Malawi (“MCA-Malawi”), as a public trust created under the laws of Malawi, as the primaryagent of the Government to implement the Program and to exercise and perform theGovernment’s right and obligation to oversee, manage and implement the Program, includingwithout limitation, managing the implementation of the Project and its Activities, allocatingresources and managing procurements (the “Designated Rights and Responsibilities”). TheGovernment will remain ultimately responsible for the performance of the Government’sobligations under or in relation to the Compact and this Agreement.

MCA-Malawi was tasked with the mandate to implement various activities that lead to the development of the Power Sector Revitalisation Project that will provide investments in Infrastructure Development, Power Sector Reform and Environmental and Natural Resources Management.  This is aimed at stimulating economic growth and contributing towards reduction of poverty in the Malawi.

The MCA-Malawi is led by The Chief Executive Officer (CEO) who is assisted by the Deputy CEO Directorscomposed of the following Legal Director; Infrastructure Development Activity Director; Communications and Outreach Director; Administration and Finance Director; Environmental and Social Performance Director; Social and Gender Assessment Director; Procurement Director; Power Sector Reform Activity Director; Monitoring, Evaluation and Economic Director. 

In the spirit of the MCC process, and indeed following  Government of Malawi’s lead, the MCA-Malawi consulted a number of stakeholders across the country throughout the Compact Development Phase. Government formed a Technical Working Group (TWG) to provide the Core Team,led by a Project Co-ordinator/Point of Contact, with advice and guidance, particularly during the Constraints Analysis and the Project Scoping process. Members of the TWG included Malawi’s development partners; members of civil society including the Malawi Economic Justice Network (MEJN), the Economists Association of Malawi (ECAMA), the National Smallholder Farmers Association (NASFAM), the religious community; and the private sector, led by the Malawi Confederated Chambers of Commerce and Industry (MCCCI). 

Government will ensure that the MCA-Malawi is and remains throughout the Compact Term  dully organised, sufficiently staffed and empowered to exercise the Designated Rights and Responsibilities.