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MCC CEO to assess compact progress

 

Millennium Challenge Corporation (MCC) chief executive officer (CEO) Dana J. Hyde is on a three-day visit of the country to review implementation of the $350.7 million (K245 billion) Malawi Compact on Power Sector Reform Project.

During her visit, Hyde will discuss the way forward for successful achievement of the compact’s objectives during its final two and a half years of implementation through her discussions with President Peter Mutharika, Minister of Natural Resources, Energy and Mining Bright Msaka and the Minister of Finance, Economic Planning and Development Goodall Gondwe, according to a statement from the United States (US) Embassy.

MCC, through its local implementing agency Millennium Challenge Account Malawi (MCA-M) awarded one of the contracts to Adnritz Hydro which is in a joint venture with Portuguese industrial conglomerate Mota-Engil to rehabilitate, modernise and upgrade the 24-megawatts (MW) Nkula A Hydro Power Plant which was commissioned in 1966.

To hold discussions on compact implementation progress: Hyde
To hold discussions on compact implementation progress: Hyde

At the end of the project, power output is expected to increase to 36MW, according to MCA-M.

Other contracts MCA-M awarded are construction of transmission substations.

The compact agreement, which entered into force on September 20 2013, is set to meet gaps in Electricity Supply Corporation of Malawi’s (Escom) working and investment capital needs, and is scheduled to be completed on September 19 2018, according to the project’s timeline.

Hyde’s visit includes a ground-breaking ceremony for the new MCC-funded 400 kilovolts (kV) transmission substation at Nkhoma in Lilongwe, the handover of new houses to families previously living in the wayleave of a MCC-funded transmission line at Tsabango in Lilongwe.

In a statement, United States ambassador Virginia Palmer said: “I am delighted to welcome MCC CEO Dana Hyde to Malawi so [that] she can see first-hand the work being done to build Malawi’s transmission and distribution systems, improve riverine management in the Shire River catchment and reform the power sector.”

She said it is important that power purchase agreements (PPAs) are signed so that Malawi has extra megawatts to catalyse the country’s economic development and the quality of life for Malawians.

So far, the Malawi Government has signed memoranda of understanding (MoUs) with about 27 Independent Power Producers (IPPs) but it yet to agree on PPAs, which is a bone of contention.

Malawi’s MCC compact is a single-sector programme designed to increase incomes and reduce poverty by revitalising Malawi’s power sector and improving the availability, reliability and quality of the power supply.

The compact is composed of three projects which seek to increase the capacity and stability of the national electricity grid and bolster the efficiency and sustainability of hydropower generation.

Earlier, MCA-M said it had enough time to implement all projects under the compact agreement.

Hyde, a former State Department and White House official, has more than 20 years of experience in law and public policy, with expertise in economic growth and resource management in the US and around the globe.

MCC is an independent US foreign aid agency that helps in the fight against global poverty. transmission substations.

The compact agreement, which entered into force on September 20 2013, is set to meet gaps in Electricity Supply Corporation of Malawi’s (Escom) working and investment capital needs, and is scheduled to be completed on September 19 2018, according to the project’s timeline.

Hyde’s visit includes a ground-breaking ceremony for the new MCC-funded 400 kilovolts (kV) transmission substation at Nkhoma in Lilongwe, the handover of new houses to families previously living in the wayleave of a MCC-funded transmission line at Tsabango in Lilongwe.

In a statement, United States ambassador Virginia Palmer said: “I am delighted to welcome MCC CEO Dana Hyde to Malawi so [that] she can see first-hand the work being done to build Malawi’s transmission and distribution systems, improve riverine management in the Shire River catchment and reform the power sector.”

She said it is important that power purchase agreements (PPAs) are signed so that Malawi has extra megawatts to catalyse the country’s economic development and the quality of life for Malawians.

So far, the Malawi Government has signed memoranda of understanding (MoUs) with about 27 Independent Power Producers (IPPs) but it yet to agree on PPAs, which is a bone of contention.

Malawi’s MCC compact is a single-sector programme designed to increase incomes and reduce poverty by revitalising Malawi’s power sector and improving the availability, reliability and quality of the power supply.

The compact is composed of three projects which seek to increase the capacity and stability of the national electricity grid and bolster the efficiency and sustainability of hydropower generation.

Earlier, MCA-M said it had enough time to implement all projects under the compact agreement.

Hyde, a former State Department and White House official, has more than 20 years of experience in law and public policy, with expertise in economic growth and resource management in the US and around the globe.

MCC is an independent US foreign aid agency that helps in the fight against global poverty. n

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One Comment

  1. You mean the government cant afford help home grown engineers, those already in in all types of energy systems,or already in ESCOM work together with one of these companies in venture to help this country out of the mess of black out?

    Why MCCA-M decided to award contract to Adnrizt hydro of which is a joint venture with mota-engil, and not to one company only? ie taking Adnrizt only

    MCC of course is a US foreign aid Agency….but if this is for free as aid, Thank you…but as far as i know the involvement of Goodall Gondwe`s ministry it means there is money..Boma lingwa pa ngongole. as well as siphoning of money by fat cats in the name of fighting global poverty. or poverty in this country..PLEASE ANTHU INU INVANI CHISONI THE WAY MALAWIANS ARE SUFFERING..LOVE YOUR COUNTRY, LOVE YOUR PEOPLE. USE TAX PAYERS MONEY WISELY

    MCC .. increase income and reduce poverty………………and quality of power supply ndakayika….But Thank you

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