The US says this raises hope for Malawi to be considered for a second Compact as soon as next month during a meeting of MCC’s Board of Directors.
Public Affairs Officer for American Embassy in the country, Douglas Johnston, however says, selection for a second compact is not automatic and looks at high standards for second compact eligibility which includes successful implementation of the first compact, improve scorecards policy performance and commitment to pursue sectoral reforms.
“During the meeting in December, the Board of Directors will put Malawi under review and look at how Malawi maintains and builds on the significant investments to strengthen the country’s power sector,” said Johnston.
He said in the event that Malawi has not been selected for a second compact during this board meeting does not mean that it cannot be considered or qualify in the future.
Malawi has scored 59% on control of corruption, 84% on rule of law, 96% on health expenditure, 67% on government effectiveness, 86% on freedom of information, 86% on primary education expenditure and 78% on land rights and access among other. However the country trailed behind by 27% on fiscal policy and 21.7% on inflation among others.
The MCC and the government of Malawi signed a 350.7 million US dollar compact in 2011 to revitalize the country’s power sector which ended in September 2018.
The MCC compact, implemented by the government of Malawi through the Millennium Challenge Account – MCA, is designed to increase the capacity and stability of Malawi’s National Power Grid, boost the efficiency and sustainability of hydro power generation and prepare for the future expansion by strengthening power sector institutions, regulation and governance.
The MCC score cards are comprised of 20 indicators measuring policy performance in the areas of economic freedom, investing in people and ruling justly and the board of directors uses the score cards performance in its decision making when selecting country partners.