The NWD II ACGF Project is a $25 million operation which builds on an on-going $50 million IDA operation recently approved by the Board. The ACGF project was approved by the Africa Regional Vice-President on March 13, 2008, and is expected to improve water supply services in the market centers and rural areas of Malawi by increasing the number of communities with a well-managed water supply, and additional people with improved water and sanitation each year. This is expected to translate into an overall increase in the number of people with access to improved water supply and sanitation in rural and urban areas, towns, and market centers, from 65% of the population served to 79%.

Malawi qualifies for ACGF funding because the country: (a) has demonstrated a recent and sustained commitment to reform in economic governance; and (b) has developed a credible strategy for shared growth in the Malawi Growth and Development Strategy (MGDS) that can be scaled up. The focus on water supply contributes to both economic growth, as well as a hard to reach MDG. The proposed ACGF will help to increase support to the Government?s strategy, involving multiple donors and private participation.

The ACGF will make an initial contribution of US$10 million for the first year of implementation. This is expected to be followed by an additional ACGF contribution of $15 million based on performance and the availability of ACGFfunding.

The financing plan for the project includes financing from ACGF, IDA, UNICEF, JICA, AfDB, EIB, EU, CIDA, OPEC Fund, Water Aid, MalawiIDA, UNICEF, JICA, AfDB, EIB, EU, CIDA, OPEC Fund, Water Aid, and the Government of Malawi. Approximately $182 million in funding has been leveraged from these development partners.