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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF MALAWI
AND
THE GOVERNMENT OF THE KINGDOM OF NORWAY
ON
DEVELOPMENT COOPERATION
9TH OF JUNE 2008
1. Introduction
Norway and Malawi have engaged in long-standing development cooperation as reflected in the Memorandum of Understanding concerning development co-operation signed in April 2001. This Memorandum of Understanding is an instrument to continue and develop the relations between our respective Governments and to establish an overall framework for our development cooperation.
2. Development framework
The Government of Malawi has defined the Malawi Growth and Development Strategy for 2006-2011 (MGDS). The Malawi Development Assistance Strategy for 2006-2011 is the framework for promoting development assistance effectiveness.
The overall objective of the MGDS is poverty reduction through sustainable economic growth and infrastructure development.
The overall objectwe is envisaged to be reached through policies in six key priority areas: agriculture and food security; irrigation and water development; transport infrastructure development; energy generation and supply; integrated rural development; prevention and management of nutrition disorders, Hiv and Aids.
In order to support the priority areas, the strategy is built around five themes:
sustainable economic growth; social protection; social development; infrastructure development; and improved governance.
Malawi’s commitment to promoting democratic pluralism, human rights and good governance, including the fight against corruption, are vital for achieving the above objectives, and form the basis of the cooperation.
3. Objectives and areas of cooperation
The development cooperation wiIl aim at supporting Malawi’s actioris to realise the vision and main objectives put forward in the MaIawi Growth and Development Strategy for 2006-2011.
The key areas for long-term cooperation with the government sector wiII be:
- Governance
Improved governance, policy making and implementation through budget support and capacity building of governance institutions.
- Health and HIV/AIDS
Improved service delivery in health and Hiv/Aids.
- Environment and natural resources
Strategic support to capacity building for environmental sustainability, climate change adaptation and natural resource management, including agriculture.
- Gender
lmproved gender equality with targeted initiatives for improved conditions for women and through increased focus on women in other areas of support.
To enhance aid effectiveness, Norway will, where appropriate, provide assistance through programme and budget support. Decisions on increased budget support wiII be based on the development of good governance, implementation of the MGDS and the improvements in the financial management system.
Malawi’s request for support to the energy sector may be considered, with a reduction of support to one or more of the key areas listed above as a possible consequence.
Norway commits itseif to be a predictable development partner and indicate future support as agreed in the principles of the CABS-dialogue.
Norwegian cooperation may also support culture and non-governmental organisations.
The cooperation may include support for facilitating private sector development, where appropriate, through public-private partnerships.
Norway witl continue to seek Malawi’s guidance in the selection of sectors for cooperation in order to contribute to an efficient distribution of tasks between Malawi’s development partners.
Norway wiII aim at continuing its cooperation with the AU, NEPAD and SADC, and at providing support for regional and sub-regional projects and programmes where Malawi may be one of the participating countries. Support to the energy sector may be of interest in this context.
Furthermore, Norway wiII aim at strengthening the role of the United Nations, the UN Development Group, the World Bank and the African Development Bank, in which Malawi is one of the development partners.
In the event of natural or other disasters, Norway is committed to making a quick response and providing emergency assistance through the UN and bilaterally.
4. Roles and responsibilities
To facilitate the implementation of the MGDS, Norway and Malawi undertake to implement the principles of the Paris Deciaration on Aid Effectiveness, in which both countries are participants.
Malawi is committed to exercise effective leadership of the development policies and strategies put forward in the MGDS and to coordinate development actions. Norway will respect and support Malawi’s leadership and heip to strengthen Malawi’s capacity to exercise it.
Norway will base its overall support on Malawi’s national development strategies. Malawi will be responsible for planning, implementing, monitoring and reporting on all government-sector activities supported by Norway. The support from Norway will be untied.
Malawi is committed to strengthen national systems, institutions and procedures for effective, accountable and transparent management of aid and other development resources. Norway is committed to use national financial management systems in so far as they meet acceptable standards. Parallel project implementation units should be avoided.
The individual agreements on support will serve as instruments for a dialogue on results, management and implementation, and will specify the obligations of the parties.
Both Governments are committed to the goal that all support to the government sector should be reflected in the annual national budget.
Both Governments agree that no corruption or fraudulent practice will be accepted in the cooperation.
Norway will provide information on an annual basis on the total volume and recipients of country-level assistance, including support to the private sector and nongovernmental and multilateral organisations.
5. The volume of assistance
Norway will aim at allocating a minimum of NOK 200 000 000 per year for support to the government sector in Malawi for the period 2008-2012. This amount is subject to approval by the Storting (Norwegian parliament) and to satisfactory performance with regard to Malawi’s commitments to reduce poverty and promote democratic pluralism, human rights and good governance, including the fight against corruption.
Additional resources may be available if the Storting decides to increase Norway’s overall aid budget.
Malawi may receive additional assistance from regional and global funds, including support for the private-sector, non-governmental, and multilateral organisations, educational grants for higher education abroad and technical assistance in specific areas. Technical assistance will only be provided on the specific request of the Government of Malawi.
6. Other issues
Regular consultations will be arranged to monitor the implementation of this Memorandum of Understanding. The timing and frequency of these consultations will be agreed on through diplomatic channels.
7. Validity
This Memorandum wilI be valid for the planned period of 2008- 2012, from the date of its signature. It may be revised when deemed necessary by either of the parties, and the parties will agree upon mechanisms for such revisjon. It may be terminated by either party with six months notice.
Done at Lilongwe on this 9th day of June 2008
For the Government of the Republic of Malawi
Goodall Gondwe
Honourable Minister of Finance
For the Kingdom of Norway
Haakon Arald Gulbrandsen
State Secretary for International Development
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