Press Release

MCC Signs $350 Million Compact with Malawi

MCC Vice President of Compact Operations Attends Signing Ceremony in Lilongwe, Malawi.

For Immediate Release

April 7, 2011

Washington, D.C.—The U.S. Government’s Millennium Challenge Corporation (MCC) today signed a $350 million, five-year compact with the Government of Malawi to invigorate the country’s power sector, spur private investment, and promote long-term, sustainable economic growth. MCC Vice President of Compact Operations Patrick Fine participated in the signing ceremony in Lilongwe.
“We acknowledge that the negotiations have been long and, at times, difficult,” remarked Mr. Fine at the event. “The end result of this process, however, is a robust compact program – derived from rigorous analysis and broad-based consultations – that will improve the lives of millions of Malawians.”
On January 5, 2011, MCC’s Board of Directors approved the compact with Malawi, which focuses on improving the availability, reliability, and quality of the country’s power supply, and implementing policy reforms needed to attract private sector investment and ensure the sustainability of MCC’s investments. The compact will focus on increasing the efficiency of existing power generation and upgrading the transmission and distribution network. It will also provide support for Malawi’s policy reform agenda and build capacity in critical institutions, including the nation’s electric utility (ESCOM), energy regulator (Malawi Energy Regulatory Authority) and executive policy-making ministry (Ministry of Natural Resources, Energy and the Environment). MCC’s investment is expected to generate $2.4 billion in income for more than 5 million Malawians.
The reform of energy sector policies, which will be led by the Malawians, will drive further development of the sector and will enhance sustainability of project outcomes. These reforms are expected to provide the conditions necessary for Malawi to make further public investments and attract new private investment in the sector.
MCC has had concerns about recent changes to Malawi’s penal code and has engaged in a constructive high-level dialogue with the government of Malawi to discuss issues of critical importance to MCC – freedom of expression and human rights.  MCC will continue to monitor the Government of Malawi’s performance and commitment to good governance over the course of compact implementation.
For more information on the Malawi Compact please visit:


Millennium Challenge Corporation, a U.S. Government agency designed to work with developing countries, is based on the principle that aid is most effective when it reinforces sound political, economic, and social policies that promote poverty reduction through economic growth.  For more information, please visit

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