Background

1. Malawi presents the first case of applying the Managing for Development Results Capacity Scan (CAP-Scan) in a single sector. The exercise concentrated on the energy sector, more specifically the Power component of the Sector, which is the most developed of the components of the energy sector in general. In Malawi power sector is hydro-generated electricity, with the newer forms of energy emerging gradually. The CAP-Scan comes against a backdrop of unstable power supply punctuated with frequent blackouts and electricity rationing. Top management in the sector has been the “reason” for the inefficiences, without proper scrutiny of the entire system. But across the years, changing top management has proved not to be the solution. The Millennium Challenge Corporation will be providing funds to Malawi under the Compact to strengthen and support activities to increase generation, hence the need for the CAP-Scan in the sector to make sure the resources will be properly managed and utilised in the most effective manner.

2. Process

The first meeting was held on 13^th November 2009 at the World Bank offices where members were briefed on what CAP-Scan is and what it aims to achieve. From that first meeting it was understood that the CAP-Scan tool is a tool for self assessment to identify capacity gaps. Subsequently, a number of preliminary meetings were held in November/December 2009 and finalized in February 2010 comprising the initial task team and then later joined by the national facilitator before the arrival of the international facilitator mid February. This included development of an ‘Expression of Interest’ as an initial statement of the situation and need. Later on consultations were made with wider stakeholders to solicit more views on the subject matter. The objectives of the consultations were to get stakeholder inputs on four broad MfDR areas:

• Priorities for the Power Sector

• Measuring Performance

• Evidence based decision-making

• Accountability issues in the power sector

3. Institutions involved

The Institutions that have been directly involved in the CAP-Scan process are:

• Ministry of Natural Resources, Energy and Environment.(MNREE)

• Department of Energy Affairs( DoE)

• Ministry of Finance (MoF)

• Office of the President and Cabinet (OPC)

• Malawi Energy Regulatory Authority (MERA)

• Electricity Supply Corporation of Malawi (ESCOM)

• Millennium Challenge Account-Malawi (MCA-M)

4. Outcomes (Very brief Summary)

Power Sector CAP-Scan Assessment

The outcome of the taskforce meetings and wider stakeholder consultations was a Malawi Power Sector adapted CAP-Scan Matrix. Scores were then made for each of the seventeen (17) Managing for Development Results (MfDR) elements. These were scored on a range of 0-4, 4 being the best. Below is a summary of the scoring of the various elements;

5. Areas for Immediate Impact (within 6 months)

The exercise came up with five (5) areas to concentrate on and make good impact within 6 months. The areas identified are:

1. Ensure that efforts to update the National Energy Policy and Master Plan incorporate a results orientation, link these two documents with one another, and clearly identify and cost major investments.
2. Launch the Sector Council for Energy as a mechanism for donor coordination and seek full alignment of donors with a focused set of GOM power sector priorities.
3. Develop and implement a targeted program to train journalists in power sector issues and analysis.
4. Review and revise the power sector investment budget and the current decision-making process to ensure they fully reflect government priorities and the current sense of urgency.
5. Develop and begin to implement a sector-wide strategy for collecting, analyzing and disseminating power sector statistics.

The Action Plan pointing out timeframe and responsibilities is yet to be finalised shortly.