The Rural Electrification Act of 2004 establishes Malawi Rural Electrification Fund. The Fund is responsible for financing and management of rural electrification projects in the country.
Fund disposes of revenues gather from grants, subsidies, donations and governmental fund allocations.
The Fund will be eligible to finance:
- the capital cost of rural electrification grid extension and off-grid electrification;
- the capital cost of solar home system equipment to be acquired for public institutions;
- operational and maintece costs of rural electrification projects, to the extent to which it makes the project viable;
- provision of credit guarantees for the capital cost of solar home system equipment other than those to be acquired by Concessionaire;
- research and consultancy assignments related to rural electrification;
- expenses for credit guarantee funds management;
Annual expenses of the Fund cannot exceed annual revenues.
For more detailed information please view the full text of the legislations.