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The Millennium Challenge Corporation (MCC) approves Malawi Power Sector Revitalization Project

The Power Sector Revitalization Project seeks to improve the availability, reliability, and quality of the power supply by increasing the capacity and stability of the national electricity grid and bolstering the efficiency and sustainability of hydropower generation.
Project activities to strengthen sector institutions and enhance sector regulation and governance will support an enabling environment for future expansion.

Infrastructure Development Activity (approximately $283 million)
The Infrastructure Development Activity focuses on the most urgent rehabilitation, upgrade, and modernization needs of the power system. The activity will preserve and stabilize existing generation capacity, improve the capacity of the transmission and distribution network, and increase the efficiency and sustainability of hydropower generation. The Malawian Government will commit to investing in additional generation capacity by completing the construction of new hydropower generation. The Infrastructure Development Activity also includes a sub-activity addressing environmental and social factors that negatively impact Malawi’s hydropower plants.

Power Sector Reform Activity (approximately $25.7 million)
The Power Sector Reform Activity complements the Infrastructure Development Activity by providing support for the Malawian Government’s policy reform agenda and by building capacity in critical sector institutions. The activity will target entities such as the Electricity Supply Corporation of Malawi (ESCOM), the Malawi Energy Regulatory Authority (MERA), and the Ministry of Natural Resources Energy and the Environment (MNREE) for capacity-building and technical assistance.

Additional information: MCC web site
News date: 05/01/2011

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