The Rural Electrification Programme started in the 1980s with Electricity Supply Corporation of Malawi (ESCOM) Ltd as the implementing agent using donor and own resources. Since 1980, three phases of the Malawi Rural Electrification Programme (MAREP) were implemented by ESCOM Limited.
Following the reforms in the electricity sector, ESCOM Ltd was commercialized and mandated to operate as a commercial entity. ESCOM Ltd could then not continue implementing MAREP since most MAREP projects were deemed not economically viable.
Faced with the obligation to provide social services to the rural communities, Government took over the responsibility of MAREP and the Ministry of Natural Resources, Energy and Mining, through the Department of Energy Affairs (DoEA) was mandated to plan and implement the Programme.
In 2004 the Government of Malawi approved Energy Laws, including the Rural Electrification Act. Through this Act the Energy Fund, which finances MAREP, was created. Sources of this Fund are levies from all energy sales including petroleum products and electricity sales. The Rural Electrification Management Committee (REMAC) was also established with membership from representatives of the Board of Engineers, Society of Accountants of Malawi, Ministry of Local Government, Ministry of Finance and Economic Development and Ministry of Natural Resources, Energy and Mining which chairs the committee. REMAC provides policy and an oversight to the implementation of MAREP.
Selection Criteria for MAREP Sites
The selection of sites for MAREP is based on a Rural Electrification Master Plan which was concluded in 2004 with financial and technical support of the Japanese Government. The Plan is founded on a three point criteria. The first element of the criteria requires that MAREP activities must focus principally on the electrification of Trading Centers. The second element of the criteria requires MAREP to follow a strict equity principle where all Districts in the country stand equal to each other, irrespective of their population size or level of electrification. The third component of the criteria requires that for objectivity in site selection, targeted Trading Centers in each District be based on a rational ranking process following known economic sub-criteria. Currently, this sub-criterion is based on the potential demand of each Trading Centre, which is invariably linked to the level of economic activities.
MAREP Phases Implemented
The Government of Malawi, through the Department of Energy Affairs, has implemented four phases between 2002 to date as follows:
• Phase 4 planned to electrify 58 centres, however, 39 other centres benefited at a total cost MK680.2 million. This was implemented between 2002 and 2007
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• Phase 5 planned to electrify 27 centres, one per district except Likoma which is fully electrified. Implementation of this phase was from September 2007 to February 2009 at a total cost of MK899 million.
• Phase 6 planned to electrify 54 centres, two per district but ended up electrifying 91 Trading Centres. Implementation of this phase was from November 2010 to August 2012 at a total cost MK2.4 billion.
• Phase 7 targeted 81 centres, three per district.
Implementation started in August, 2013 and is still under way and will have electrified 139 Trading centres by the time it is completed this year. The total cost of this phase is expected to be at MK8.3 billion.
MAREP Phase Eight
My Ministry is currently in a process to implement MAREP Phase Eight. Like any other MAREP Phase, this one too is targeting Trading Centres which have been selected from the Rural Electrification Master Plan.
MAREP Phase Eight will target 81 Trading Centres, three from each District
The list of centres for MAREP Eight is available in my Ministry for you.
Planning of Phase Eight started in May and is expected to be completed by end of August 2015. The output of this planning exercise will be Bills of Quantities of materials required to implement the phase. Procurement process of the materials will start in September 2015 and is expected to be finished by February 2016. Alongside this process, procurement of contractors will also be done. It is expected that construction works will begin in March 2016 and finish in March 2017. MAREP Phase Eight is estimated to cost about MK12.1 Billion.
Challenges Associated with the Selection Criteria
The overarching challenge to rural electrification is finances and capacity. With only installed capacity of 351.75 MW of electricity in the country, it is impossible to electrify each and every deserving Trading Centre, since MAREP draws its power from this installed capacity on national grid. More power is, therefore, required to reach out to all deserving Trading Centres.
Additionally, demographic, geographic and economic disparities also pose a huge challenge to the successful implementation of the programme. This is so because some Districts have huge population densities than others, some are growing faster economically than others meaning they have a lot more Trading Centres than others.
Measures to Address Some of the Challenges
The Government is committed to increase electricity capacity through involvement of Independent Power Producers (IPPs). IPPs have been invited to generate electricity and inject it into the national grid through Power Purchase Agreement (PPA) with ESCOM. This is expected to increase the power capacity nationally, which will be extended to MAREP, thereby increasing the number of Trading Centres to be electrified.
In addition to this, my Ministry intends to put in place measures to ensure that highly populated Districts with higher economic growth potential are prioritized to have an increased number of targeted Trading Centres. This would require to use scientific targeting methods to include demographic, geographic size, electricity demand and the level of electrification.
Conclusion
The Government of Malawi is committed in improving the life of the population in rural areas by providing electricity throughout the country. Although there are challenges in power generation capacity, financial resources and selection of sites that would ensure equity, my Ministry is working hard to find lasting solutions to these challenges.
NO. DISTRICT TARGETTED TRADING CENTRE
1 Chitipa 1 Sokola
2 Mahowe
3 Namatumbi
2 Karonga 4 Chesa
5 Ngana
6 Mwangulukulu
3 Rumphi 7 Luviri
8 Phoka
9 Bowe
4 Mzimba 10 Bulala
11 Emfeni
12 Khosolo
5 Nkhatabay 13 Chituka
14 Nthungwa
15 Chisu
6 Kasungu 16 Nthabuwa
17 Chambwe
18 Ndonda
7 Nkhotakota 19 Mpondagaga
20 Katimbira
21 Malowa
8 Ntchisi 22 Mawiri
23 Malambo
24 Bumphula
9 Dowa 25 Mkukula
26 Kalumbu
27 Kachigamba
10 Salima 28 Chitala
29 Chinguluwe
30 Michulu
11 Lilongwe 31 Mtema
32 Malembo
33 Chadza
12 Mchinji 34 Kazyozyo
35 Kabuthu
36 Kalulu
13 Dedza 37 Mphunzi
38 Kamenya
39 Mphathi
14 Ntcheu 40 Kandeu
41 Chilobwe
42 Mphepozinai
15 Blantyre 43 Mitsidi
44 Chigwanjwa
45 Domwe
16 Chiradzulu 46 Ndunde
47 Msoni
48 Chikaonda
17 Thyolo 49 Chipho
50 Sandama
51 Mphuka
18 Mulanje 52 Nakamba
53 Milonde
54 Mzizira
19 Phalombe 55 Dzenje
56 Mpasa
57 Namba
20 Chikwawa 58 Changoima
59 Dolo
60 Thendo Border post
21 Nsanje 61 Msiyakhuni
62 Chibuli
63 Kanyimbi
22 Mangochi 64 Kwisimba
65 Manjuni
66 Mvumba
23 Balaka 67 Shire North
68 Kuntiyani
69 Sawali
24 Machinga 70 Malundani
71 Nayuchi
72 Mangamba
25 Zomba 73 Ngondole
74 Makina
75 Nachuma
26 Mwanza 76 Njolomola
77 Chipondeni
78 Ilemba
27 Neno 79 Chilimbondo
80 Kasamba
81 Kundembo
