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MCA-M COMMITS 93% OF TOTAL COMPACT FUNDS

Millennium Challenge Account Malawi (MCA-Malawi) has so far committed 93 cents of every $1 of the total $350.7 million Compact resource envelop, Malawi Minister of Energy, Natural Resources and Mining Aggrey Masi has said.

Masi disclosed this when he addressed a seventh Semi Annual Review (SAR) Forum which took place at Capital Hotel in Lilongwe. The forum was held under the theme ‘Sustainability of MCC investments.’

“To date, 93 percent of the total compact grant has been committed and 57 percent has been disbursed,” said the Honorable Minister, who was also Guest of Honour during the event.

However, Masi told the gathering that he expects such figures to peak and accelerate given the on-going works in many project cites across the country.

According to Masi, so far, the Compact has invested $238.7 million in Infrastructure Development which he said includes upgrading the electricity grid system in Malawi and increasing our throughput capacity from 260 megawatts to 960 megawatts by September 2018.

“An additional $22.2 million has been invested in Power Sector Reforms to improve the financial and operational performance of ESCOM and EGENCO, strengthening the regulatory functions of MERA as well as capacity building.

Furthermore, the Minister said $29.8 million has been invested to tackle the Environment and Natural Resources challenges that Malawi is currently facing along the upper and middle Shire River.

According to Masi, the Malawi power sector currently requires a sound financial base, effective operational practices, and a policy framework that supports smart growth.

He said he was pleased that the Compact has helped Malawi government strengthen policies and institutions in the power sector and has also ensured an enabling environment for companies to invest in Malawi’s power sector.

On her part, United States of America (USA) Ambassador to Malawi Virginia Palmer noted that Malawi Government and all Compact project partners have made a strong commitment to the institutional reforms necessary to transform the power sector.

The SAR Forum, provides an opportunity to review progress and challenges in ESCOM, EGENCO, MERA and the Ministry against key milestones and actions that all project partners agreed to implement.

The forum also gives an opportunity to map out how to sustain key investments in the power sector.

The platform unites the most influential stakeholders in the power sector who take stock of progress on power sector reforms.

Malawi Government and USA Government signed a Compact in April 2011 before it Entered Into Force on September 20, 2013.

So far four years of Compact implementation has elapsed and only less than a year remains to complete all the projects.

 

Group Photo

 

Masi and Ambassador Palmer captured seated at the high table

 

Masi is welcomed by MCA Malawi CEO Dye Mawindo at the seventh SAR

 

Masi makes a statement marking the official opening of the seventh SAR

 

MCC Resident Country Director Molly Glenn right greets Minister Masi