The United States Government expects Malawi to meet project targets and deadlines set out in the United States-funded US$350 million Millennium Challenge Corporation (MCC) compact programme having so far successfully implemented various projects under the compact.
US Ambassador to Malawi, Virginia Palmer, says her government is impressed with the progress made and the impact the project works are having in improving Malawi’s energy sector.
“Malawi has got more capacity on the grid to expand electricity to businesses and people’s homes. What we need now is power generation and we need Independent Power Producers to venture into power purchase agreements,” said Palmer.
The compact’s power sector revitalisation project seeks to increase the capacity and stability of the national electricity grid and bolster the efficiency and sustainability of hydropower generation in the country.
On Monday this week, the MCC officially inaugurated development works for the Nkhoma power substation in Lilongwe which is expected to transmit electricity from Southern Malawi to the Southern and Northern parts of the country.
Some experts have expressed reservations that Malawi may not be able to exhaust funds under the Millenium Challenge Account Malawi (MCA-M) before the 2018 deadline.
But the MCA-M has since signed off about US$181 million for various projects under the power compact.
MCA-Misimplementing the compact project through funding from the US government focusing largely on developing Malawi’s energy sector and started its operations in the country two years ago.
The project will among other things revitalize Malawi’s power sector by upgrading electricity infrastructure and improving the performance of key institutions within the energy and power supply sectors.