Government, potential investors in the power sector and financial institutions had time to put their ideas together during the 2010 Power Conference jointly organised by the Millennium Challenge Account-Malawi and Standard Bank.

Held for the first time in Malawi, more than a hundred delegates, including the private sector, shared notes on how best the private sector could invest in the power industry, steps taken by government to stimulate a conducive environment and challenges in the regulatory environment for private and public investors.

Speaking at the official opening of the conference, the Minister of Natural Resources, Energy and Environment Grain Malunga, said Government had identified projects and programmes to address electricity problems in the short, medium and long term. Malunga encouraged the private sector to invest in electricity production.

“The realizations of these projects need concerted efforts and collaboration between the private and public sector and government is already taking a lead in the creation of a favorable environment for the participation of the private sector in power generation”, said Malunga.

“Government is also committed that a cost reflective tariff is allowed for an investor to be able to recover his investment and earn a reasonable return’’ said Malunga. The Minister was optimistic that the high level Conference  would be the beginning of a concerted collaboration in the implementation of a cost reflective tariff.

During the two–day conference, highlights on the challenges in the investment climate included the need for a  cost recovery tariff, the need for laws and policies for private sector participation, clarity on power purchase  agreements  and the investment climate in general.

MCA-Malawi National Coordinator and Point of Contact Sam Kakhobwe said the dialogue between the public and private sector would continue to inform the compact programme. “Our role is to facilitate this process and assist government in forming partnerships that will culminate in increased access to reliable power,’ said Kakhobwe.

Speaking during the close of the conference, Managing Director of Standard Bank Charles Mudiwa said challenges in the power sector needed home grown solutions and was a responsibility for all players. ”The dialogue has to continue to facilitate communication between the private sector and government,’’ said Mudiwa .

A key part of the activities under the Malawi compact include creating a conducive environment for private sector participation in the power sector.

At the end of the conference which was held under the theme Towards a Common Solution to Sustainable Power, delegates developed a communiqué which will be presented to government.