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The Millennium Challenge Corporation (MCC) Malawi Compact has come to a successful end with the handover and commissioning of the Nkula A Hydropower Station. The MCC Malawi Compact was designed to increase individual and business incomes and reduce poverty by improving the availability, reliability and quality of the power supply, expanding access to power, reducing the cost of doing business, and revitalising Malawi’s power sector.

Nkula A Hydropower Station rehabilitation complete

Investments in infrastructure through the Compact increased the volume of electricity and improved the stability of Malawi’s electricity grid. System enhancements were introduced across the network and at the national control centre through a state-of-the-art network data monitoring system, contracted to General Electric, which provides real-time and remotely managed information on the electrical grid and power outages.

The successful rehabilitation of the Nkula A Hydropower Station was a major component of the MCC Malawi Compact. At the beginning of the compact, Nkula A, originally commissioned in 1966, was not running at full capacity due to poor condition. Through MCC’s investment, the rehabilitated and modernised hydropower station now has at least an additional 30 years of operation and output capacity increased from the original 24MW to 36MW.

The agreement also focused on policy and institutional reforms. To ensure long-term success, MCC’s power sector investments in Malawi needed the support of well-managed utilities, an open and competitive market and a strong regulatory framework. According to the organisation, major progress has been made by splitting the Electricity Supply Corporation of Malawi (ESCOM) into two entities: ESCOM Ltd., focused on transmission and distribution of electricity; and the Electricity Generation Corporation (EGENCO), focused on generation.

“The successful end of the MCC Malawi Compact demonstrates that the United States, the MCC Compact, and the Government of Malawi are delivering on their promise to modernise the power sector and improve the lives of people across this beautiful country,” U.S. Ambassador to Malawi Virginia Palmer said at the handover ceremony.

Image credit: https://mw.usembassy.gov/remarks-by-u-s-ambassador-to-malawi-virginia-palmer-at-the-fabulous-women-event/

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