Malawi Compact

Malawi’s $350.7 million Millennium Challenge Corporation compact is a single-sector program designed to increase incomes and reduce poverty by revitalizing Malawi’s power sector and improving the availability, reliability and quality of the power supply.

The compact’s Power Sector Revitalization Project seeks to increase the capacity and stability of the national electricity grid and bolster the efficiency and sustainability of hydropower generation.

Project activities will support an enabling environment for future expansion by strengthening sector institutions and enhancing sector regulation and governance. As a result of these activities, the compact intends to reduce energy costs to enterprises and households and improve productivity in the agriculture, manufacturing and service sectors.

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as of March 1, 2014

  •  Grant Total:
    $350,700,000.00
  •  Grant Committed:
    $17,977,218.00
  •  Grant Expended:
    $5,847,144.00
  • Signed:
    April 7, 2011
  • Entry into Force:
    September 20, 2013

The Power Sector Revitalization Project is comprised of two activities, the Infrastructure Development Activity and the Power Sector Reform Activity.

Infrastructure Development Activity

The Infrastructure Development Activity focuses on the most urgent rehabilitation, upgrade and modernization needs of the power system. The activity will preserve and stabilize existing generation capacity, improve capacity of the transmission and distribution network and increase the efficiency and sustainability of hydropower generation.

The Government of Malawi will commit to investing in additional generation capacity by completing the construction of new hydropower generation. The Infrastructure Development Activity also includes a sub-activity addressing environmental and social factors that negatively impact Malawi’s hydropower plants.

Power Sector Reform Activity

The Power Sector Reform Activity complements the Infrastructure Development Activity by providing support for the Government of Malawi’s policy reform agenda and by building capacity in critical sector institutions. The activity will build capacity and provide technical assistance to the Electricity Supply Corporation of Malawi (ESCOM), the Malawi Energy Regulatory Authority and the Ministry of Natural Resources, Energy and the Environment.