The Millennium Challenge Corporation (MCC) has said Malawi continued to pass its scorecard by meeting the requirement of passing the 20 indicators overall, including the hard hurdles of control of corruption and democratic rights. According to a recent 2018 scorecards which was released by MCC through the Embassy of the United States of America, the score cards comprised 20 indicators measuring policy performance in the areas of economic freedom, investing in people, and ruling justly, and are now produced for low and lower middle income countries.
“The scorecard uses indicators developed by independent, third party sources and provide an objective basis for comparison of the policy performance of all candidate countries,” reads the report in part. The report also said the publication of MCC score cards underscores the agency’s commitment to transparency which is integral to the MCC model and a key component of enhancing US tax payer resources.
MCC through the statement further said while Malawi’s MCC compact remains largely on track to complete all major works prior to compact completion in September 2018, the sustainability of MCC investment will require continued commitment of the Government of Malawi and project partners to achieve power sector reform goals. “Including an electricity tariff and policy that allows the power institutions to cover the cost of producing electricity grid, and encourage private sector investment in power generations,” reads the statement in part.
It further says MCC’s board of Directors uses scorecard performance as one consideration in its decision making when selecting country partners at its annual country selection each year. The statement also said the MCC compact implemented by the Government of Malawi via the Millennium Challenge Account (MCA), is designed to increase the capacity and stability of Malawi’s national electricity grid to bolster the efficiency and sustainability of hydro-power generation and prepare for future expansion by strengthening power sector institutions, regulation and governance.
Through collaborative efforts with project partners such as the Electricity Supply of Malawi (ESCOM), Electricity Generation Company (EGENCO), the Ministry of Natural Resource, Energy and Mining and the Malawi Energy Regulatory Authority (MERA), the compact aims to reduce poverty by odernizing Malawi’s power sector and improving the availability, reliability, and quality of the power supply, says the report.
MCC and the Government of Malawi signed a US$350.7 million compact in 2017 to revitalize the country’s power sector. The compact will end in September 2018.