July 26, 2011
Millennium Challenge Corporation Places Operational Hold on Malawi Compact
The Millennium Challenge Corporation (MCC) is a U.S. Government agency that provides development assistance to countries that demonstrate a commitment to good governance. At the core of an MCC partnership is the expectation that countries maintain a demonstrated commitment to political pluralism, human rights, and the rule of law throughout the life of the program. MCC is deeply concerned by recent events in Malawi and is placing an immediate hold on all program operations in order to review its partnership with Malawi, including whether to recommend to its Board of Directors whether to suspend or terminate its assistance.
MCC signed a five-year, $350 million Compact with the Government of Malawi on April 7, 2011. The Compact is focused on Malawi’s power sector and is expected to benefit nearly 6 million Malawians. By reducing power outages and technical losses, enhancing the sustainability and efficiency of hydropower generation, and improving service to electricity consumers, the Compact is designed to reduce energy costs to enterprises and households; improve productivity in the agriculture, manufacturing and services sectors; and support the preservation and creation of employment opportunities in the economy.
MCC’s operational hold will bring to a halt all ongoing Compact activities during the review.