Press Release

MCC Chief Executive Officer Daniel W. Yohannes Travels to Malawi After Reinstatement of $350 Million Compact Grant

For Immediate Release

July 12, 2012

LILONGWE - The Chief Executive Officer of the Millennium Challenge Corporation (MCC), Daniel W. Yohannes, arrived in Lilongwe, Malawi yesterday for a series of meetings with President Joyce Banda, government officials and members of Malawi’s civil society and private sector.

In June 2012, MCC reinstated the Malawi Compact, a $350.7 million grant designed to revitalize Malawi’s power sector. The compact was placed on operational hold in July 2011 and formally suspended in March 2012 due to a pattern of actions by the Government of Malawi that conflicted with the democratic governance criteria that MCC uses to select its compact partners. Since President Banda’s inauguration, she and her administration have demonstrated their commitment to reversing this pattern.

While in Malawi, Mr. Yohannes will also visit the Bunda electrical substation, a site targeted for rehabilitation under the MCC compact. U.S. Ambassador Jeanine Jackson will accompany the CEO.

Mr. Yohannes said, “The relationship between the United States and Malawi is strengthened by our shared commitment to democratic governance. President Banda deserves much credit for the bold reforms she is undertaking. Yet I share her recognition that this work would not be possible without the support of the people of Malawi. They will need to continue to take the courageous steps necessary to deepen this country’s democracy.”

MCC’s Malawi Compact will reduce poverty by improving the availability, reliability and quality of Malawi’s power supply. The compact will fund rehabilitation, upgrades and modernization of power systems, and will support the Government of Malawi’s policy reform agenda in building capacity and providing technical assistance in critical sector institutions.

An estimated five million Malawians will benefit from the compact over the next 25 years through reduced energy costs and improved productivity in the agriculture, manufacturing and service sectors.

Following the CEO’s visit, an MCC technical mission will travel to Lilongwe to prepare for compact implementation, including carrying out a reassessment of project activities after nearly one year of inactivity.