Millennium Challenge Corporation (MCC) has officially reinstated the country’s Compact US$350.7 million (K 97.8) billion for energy which was suspended in March this year following the then country’s bad governance.
MCC Chief Executive Officer, Daniel Yohannes on Thursday in Lilongwe said the ongoing governance reform is the key as they now work on the reinstatement of the US$350.7 million compact in the energy sector.
“The MCC-funded project is expected to be critical part of the sector’s turnaround and should have a very significant impact on the country more broadly,” said Johannes.
However, Johannes described the project as ambitious and complex as it will take several years for MCC- funded investment to be felt by people as new infrastructure are designed, procured and constructed across the county.
Johannes said through the partnership, the country has the opportunity to replace a crumbling and decay electricity sector with a growing and expanding.
He added that MCC will continue closely follow the changing democratic and economic landscape in the country.
Speaking after the presentation the State President Joyce Banda, said the Electricity sector is facing many challenges, and the reinstatement of the Compact is a huge relief to the country as the project will lead to reduction of power outages and technical losses.
The President added that these will enhance the efficiency and sustainability of power generation, improve service delivery to electricity consumers, and increase productivity in agriculture among others.
“I have emphasized that the reforms that we Malawians are making the recover our economy and to deepen our democracy are rooted in our strong belief that the destiny of the country rests in the hands of Malawians,” said the President.
She further said the country is prepared to make the necessary shifts in the policies and attitude to ensure that the country’s economy recovers within the quickest possible time.
The president assured MCC chief executive that Government is for the good and recognition and respect of the effort from those that support the country, strengthen institutions in accountability and capacity of the public sector.
The government also remains steadfast in upholding democratic principles as enshrined in the country’s constitution and in line with the international standards.
According MCC press release the MCC’s Malawi Compact will reduce poverty by reducing the availability, reliability and quality of the country’s power supply.
The compact will also fund rehabilitation, upgrades and modernalisation of power systems and support the country’s policy reform agenda in building capacity and providing technical assistance in the critical sector institutions.
The compact was placed on operation hold in July 2011 and was suspended in March 2012 due to a pattern of action of the country that conflicted with the democratic governance criteria the MCC uses to select its compact partners.Follow and Subscribe Nyasa TV :