Stakeholders from government, the private sector, Non-Governmental Organizations and donor agencies met at Capital Hotel in Lilongwe on 2nd February 2010, to share progress on the development of the projects to be included in the Compact.  The forum also served as an interactive session for the stakeholders to discuss and gain more understanding on the Technical Power Feasibility Study which was launched in Blantyre, on 26 January, 2010.

Millennium Challenge Account-Malawi (MCA-M) Coordinator and Point of Contact Sam Kakhobwe said the meeting was a great stride in the Compact development process. Kakhobwe thanked the stakeholders for the support they have given in developing the compact over the years and encouraged them to fully participate in the discussions. ‘’I would urge you to provide any information that you believe will enhance the ability of the consultants and the MCC/MCA-M to develop a project that will meet the goals and objectives of our country,’’ said Kakhobwe.

MCC is a US Government foreign aid agency which provides grants to poor countries in order to help them reduce poverty through economic growth. Malawi became eligible to receive compact assistance from the MCC in December 2007. The compact funds will be used to rehabilitate and modernize existing power generation, transmission and distribution systems.  In addition, the project will also enhance access to electricity in peri-urban areas and rural areas through the development of a possible rural electrification PPP project; and the project will also increase institutional capacity through interventions in ESCOM (the power utility), the Department of Energy, and at MERA, the regulatory authority.  At the moment, the MCC is assisting Malawi to conduct feasibility studies, Environmental Impact assessments (EIA’s) and preliminary designs among other things.

MCC‘s Country Director, Deidra Fair said the role of the stakeholders is to continue providing feedback to the MCC and MCA-M, so that the activities would lead to a high quality Compact program for the country.”The feasibility studies that are being done before the Compact will help avoid the risk of re-scoping the project after the Compact agreement is signed,’’ said Fair.

In the past few years, Malawians have been affected by unreliable power supply which has resulted in power rationing which led to loss of production in the private sector. “There is urgent need for interventions that will mitigate the current problems and this project offers a number of solutions,” said Willie Samute, who is the Secretary for Rationalisation and  Public Sector Reforms in the Office of the President and Cabinet. Samute called on all stakeholders to work together to continue to make progress so that Malawi and MCC can sign the compact by the end of the year.