The  Government of Malawi and the US based  Millennium Challenge Corporation (MCC) finally  sealed the US$ 350 Million grant agreement  on 7 April, 2011 in the capital city of Malawi, Lilongwe.

The Malawi leader, President Professor Bingu wa Mutharika witnessed the signing ceremony that was held at the New State House.

In his remarks, President Bingu Wa Mutharika said he was pleased that the Compact was being signed after three years of thorough consultation, close collaboration and negotiations.

President Mutharika said he was also pleased that the resource envelope had been increased from US$300 million to US$350 million which will enable Malawi to achieve more.

Approximately US$283 million of the grant will be used to improve the infrastructure in the energy sector and will focus on rehabilitating, upgrading and modernising the transmission and distribution networks, as well as refurbishing the Nkula A hydro-power station.

“This is a generous grant, what mark of friendship can exceed this!’’ said President Mutharika. 

 The President further said the Compact would help inspire further investment in power generation and will act as a backbone for the establishment of new power plants in the country.

The Malawi Compact has taken three years to develop and is a one sector programme that seeks to improve the availability, reliability and quality of power supply, increase the efficiency of hydropower generation and create an enabling environment for future expansion in the energy sector.

In his remarks, MCC Vice President for Compact Operations Patrick Fine said he is confident that Malawi will make great strides in removing one of the main barriers to economic growth through the implementation of the Compact.

“Today we look forward to a road that leads to a future of increased access to power for businesses and common people” said Fine.Fine said he has no doubt that any obstacles that would be encountered on this road will be overcome.

The MCC Vice President for Compact operations congratulated President Bingu wa Mutharika and the people of Malawi for signing the agreement.