OVERVIEW OF THE MCA-MALAWI II COMPACT
BACKGROUND
In December 2018, Millenium Challenge Cooperation (MCC) on behalf of the United States of America (USA), selected Malawi to develop a second Compact. The Compact development process was led by the Malawi Millennium Development Trust (MMD) on behalf of the Government of Malawi (Government) and concluded in June 2022 following the successful bilateral negotiations between the Government and MCC. Upon securing all requisite approvals, the parties signed the second Compact on 28th September 2022.
- THE PROJECTS
The second Compact comprises three main projects:
- The Accelerated Growth Corridor Project
This is a US$244 million Transport Project which will involve Investments in road infrastructure and policy and institutional reforms, including the decentralization of district road maintenance.
This seeks to reduce travel time and costs for smallholder farmers through the improvement of targeted roads in selected transport “corridors.” This will improve road conditions and thereby facilitate greater flow of agricultural products from the farmgate to urban, regional and export markets. There are four corridor roads totalling 287km to be upgraded under this project comprising:
- Mkanda- Linga Road
- Mkanda in Mchinji and passing through Masumbe – Nsuname – Chimwankango – Estate 74 – Kalanga – Gogo – Nthunduwala – Kamtukuwa – Kamboni – Kaziwa – Malipela – Rusa – Kapaladza – Chiujeni – Kayesa- Katcheleza and terminating at Linga in Kasungu. This is 88kms in length.
- Chileka-Likuni road
Starting off at Chileka in Lilongwe and passing through Chisaka – Kafinya – Ming’ongo – Kachawa – M’davayani – Mvenja – Ndaula – Kawiri -Phiri Lanjuzi -Malingunde – Tanga – Malili – Chiwenga and terminating at Chigwirizano in Lilongwe. This is 53kms long.
- Chikwawa-Euthini road
Starting off at Chikwawa in Rumphi and passing through Thulwe- Bowe – Vwaza – Kazuni- Enkweleni – Amon Munthali – Mpherembe – Kabwafu Turn-Off – Emangeni – Mzambazi and terminating at Euthini in Mzimba; a distance of 67kms.
- Chamtulo-Mkutumula road
Starting at Mkutumula in Ntcheu and passing through Banda – Handa – Chikande – Leveni – Black – Naunje – Mphika – Mtonda – Phirilongwe – Khungwa- Muonekera – Maloya – Chilonga – Chimvuwu – Msikidzi – Mteleleka – Nankumba and terminating at Chamtulo in Mangochi. This is a distance of 79kms.
The project will further carry out periodic maintenance on selected main roads and an improvement of approximately 376km of some link roads and feeder roads linked to the corridor roads.
The project will also carry out periodic maintenance section of the Golomoti-Monkey Bay (M10) road from Golomoti to Chamtulo (35km).
In addition, the AGC project will assist in carrying out reforms in the transport sector including the following; capacity building and technical assistance of district councils, technical assistance to the roads authority, market regulation for inclusive growth, funding for road maintenance and competitiveness of transport services.
- Improved Land Productivity Project
This is a US$44 million Project. This seeks to improve land administration services in our main land institutions. This is a policy and institutional reform activity that hopes to improve Malawi’s land governance institutions, especially with respect to the revenues that these organizations rely upon to operate efficiently and effectively. The rationale is that increased funding at national and city council levels and expenditure system improvements will translate into improved land services to our people.
This project will be achieved through two sub-projects as follows.
- Land Administration Resourcing and Institutions Activity
The sub-project will focus on Ministry of Lands and will involve the following activities :
- Land-related revenues reform and reform implementation,
- Devolution-related reform further to existing plans and reform implementation, should the GOM determine to pursue,
- Organization and analysis of existing leasehold records
- City Council Land-Based Revenue Modernization Activity
The sub-project will focus on all the four City Councils and will involve the following activities :
- Legal, regulatory, and procedural transformation
- Property Mapping, Valuation, Property Record Automation, and Property Information Management System
- Social and Behaviour Change (SBC)
- Budget and Expenditure Management Support
- American Catalyst Facility for Development Project
The US$8.5 million Facility will support the private sector in undertaking feasibility and other studies prior to the grant recipient organizations investing in their chosen projects. It is hoped that this will help to de-risk their investments and thereby catalyze more private sector investments in various sectors of the Malawi economy.
It is expected that over 5.394 million people will benefit from this project.
- ENTRY INTO FORCE OF THE SECOND COMPACT
The Second Compact entered into force on 6th May 2024 in Dallas, USA during a dinner commemorating MCC’s 20th anniversary which was graced by His Excellency Dr. Lazarus McCarthy Chakwera and Ms. Alice Albright, the CEO of MCC.
The implementation period of this compact is 5 years and will end on 5th May 2029 without any option of extension.
- COMPACT LAUNCH
To commemorate the commencement of this second compact, MCA- Malawi II has organised a symbolic launch event that will bring together key stakeholders, including government officials, MCC Officials the US Embassy in Malawi, partner organizations, the media, community leaders, the beneficiaries, and others.
The symbolic launch of the second compact is scheduled for 30 May 2024, at the Mzonde Ground, Senior Chief Kalolo in Lilongwe and it will be graced by His Excellency Dr. Lazarus McCarthy Chakwera and Ms. Alice Albright, the CEO of MCC.