Malawi Growth and Development Strategy - Phase Two

Government of Malawi
Malawi
Malawi Growth and Development Strategy – Phase Two

Macro-Framework and Costing of MGDS
CNTR 05 69 34
Final Report ©
February 2006
Government of Malawi
Malawi
Malawi Growth and Development Strategy – Phase Two

CNTR 05 69 34
Final Report ©
February 2006
ADDRESS TELEPHONE FACSIMILE EMAIL WEBSITE

Enterplan Limited
1 Northfield Road
+44 (0) 118 956 6066 +44 (0) 118 957 6066 enterplan@enterplan.co.uk
www.enterplan.co.uk
Reading RG1 8AH, UK
Contents
1
2
Contents
Introduction
Approach and Methodology
Methodology 2
Basis of the Costings 3
Headline Table 5
Table of Assumptions 6
Outstanding Issues
Links to the Budget and Resource Ceilings 7

Linkage with the PSIP 7
Recurrent/Capital Expenditure Balance 7
Synchronisation with the Budget Cycle 8
Expenditure Codes and Budget Classification 8
Conclusion
Next Steps 9
GoM / Malawi: Growth and Development Strategy / MGDS Costings Final Report /
February 2006
Contents
5 Costing Tables
Summary
Table 1 P1s Additional
Table 2 all P1s
Table 3 all Priorities Additional
Table 4 all Activities
Appendices
Terms of Reference
A1
Revised ToR
Original ToR
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Abbreviations and Acronyms
Abbreviations and Acronyms
CG Central Government
CHAM Christian Health Association of Malawi
COM College of Medicine
COMESA Common Market for Eastern and Southern Africa
EIA Environmental Impact Assessment
EHP Essential Health Package
GDP Gross Domestic Product
GoM Government of Malawi
IMF International Monetary Fund
ITN Insecticide Treated Nets
MGDS Malawi Growth and Development Strategy
MK Malawian Kwacha
NGOs Non Governmental Organisations
NRA National Roads Authority
PRGF Poverty Reduction and Growth Facility
PRSP Poverty Reduction Strategy Paper
PSIP Public Sector Investment Programme
SADC South African Development Community
SWAp Sector Wide Approach
This report has been prepared by Enterplan Limited for the Government of
Malawi by Helen Tilley of Enterplan Limited and Karl Livingstone, through the
DFID Economist Resource Centre framework. The views expressed herein are
those of the authors and do not necessarily represent the views of Enterplan
Limited.
February 2006
Introduction
GoM / Malawi: Growth and Development Strategy / MDGS Costings Final Report /
February 2006
Introduction
Introduction
1 This report has been prepared as part of the Government’s exercise to cost
and prioritise key policy based actions from the Malawi Growth and Development
Strategy (MGDS). The MGDS is the Government’s overarching policy framework for
the next five years (2006-2011).
2 Section 2 outlines the approach and the rationale for the work, and sets out a
detailed methodology on how the exercise was conducted, including the basis for
the
costings. Section 3 identifies key outstanding issues that must be addressed in
order
to progress the work further. Section 4 is the conclusion. The detailed costing
tables
are contained at the back of the report, in Section 5.
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2 Approach and Methodology
February 2006
2 Approach and Methodology
3 Public expenditure is a core government activity, which facilitates the

achievement of its policy priorities for growth and poverty reduction. A
government’s
policy priorities should have a bearing on the way scarce public resources are
allocated and used through the budget process.
4 This interrelationship requires effective linkages between public policy,

planning and budgeting. The activity of costing and prioritising policy based
programmes and activities are a process, which forges these linkages.
5 Costing and prioritisation is necessary to reconcile needs with resource

availability. In so doing, programme costs are made to fit within the aggregate
resource envelope. This involves making tough choices on which activities need
to
be scaled back, rescheduled or dropped altogether.
6 Fitting policy based activities to a hard budget constraint requires public

programmes to be affordable and to result in policy initiatives that can be
implemented effectively.
7 The aim of this process is to produce better alignment between the budget,
the policy framework and expenditure ceilings. Correspondingly inter and intra
sectoral resource allocations will, over time, increasingly reflect policy
priorities.
8 The MGDS therefore has the potential to become a key tool for influencing
pubic expenditure priorities, and in doing so can increasingly move Malawi
towards a
policy driven budget process.
Methodology
9 A step-wise approach has been taken to the costing and prioritisation of

MGDS activities:
• workshop for costing exercise convened for all key government departments
responsible for sub themes of MGDS activity matrix. The participants worked
in sectoral groups, according to the structure of the MGDS matrix;
• where feasible departments have costed proposed MGDS activities based on
existing sector expenditure plans, for example, the Health SWAp has been
used for health related activities;
• stakeholders were encouraged, where feasible, to use a bottom-up approach
to the costings using unit costs and then applying this to the quantity
required;
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• prices – 2005/06 prices have been used to derive a constant price series for
the costings. This will be adjusted for inflation when projections are available
from the macro-fiscal framework;
• exchange rate – Stakeholders were requested to cost in the original currency
of the actions, which were later converted to Malawi Kwacha at the official
exchange rate;
• stakeholders were instructed to prioritise activities based on a ranking of P1
(considered the most important); P2 (of less importance/urgency than P1
activities); and P3 (considered to be the least important of the activities);
• stakeholders were advised to think about the priority ranking very carefully
as
ultimately all needs were unlikely to be covered by the available resources
and thus tough choices over which activities could be afforded would have to
be made;
• stakeholders were also advised to consider the sequencing of the required
measures as some would need to be implemented first in order that other
activities could follow;
• at the outset, it was stressed that the costing should be done in a
constrained
manner, based on an understanding of resource availability, using the
2005/06 budget allocations as a guide. Therefore any resource increase
should be realistic, rather than representing an ideal unconstrained scenario;
• furthermore, stakeholders were asked to consider carefully the issue of
absorptive capacity and the ability of institutions to use resources effectively
in the amounts envisaged and in the time frame proposed;
• after data was received from all the contributing departments it was ‘cleaned’
in order to create a consistent costed matrix compliant with the above
instructions;
• a series of follow-up meetings were held with the departments in order to
discuss the costings and proposed priority ranking. Where necessary,
costings were challenged on the basis of accuracy and realism. Departments
where encouraged to ‘scale back’ estimates where these were considered to
be unrealistic given the likely resource availability and compared to what may
have been available historically.
Basis of the Costings
10 The above approach has been applied consistently by stakeholders to the

data supplied under each thematic heading. The result is a set of key costed
programmes, which reflect the Government’s priorities for growth and
development.
Where possible unit cost and details of budget correspondence has been presented
alongside the costings, in an observation column.
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11 For purposes of this exercise, the actions have been categorised broadly into
three types:
• firstly, those actions which are currently ongoing and which are fully funded
by the Government (and by donors and the private sector where applicable);
• secondly, actions which are ongoing but which are only partially funded and
therefore contain an element of additionality if they are to be implemented
over the five year MGDS period; and
• third, actions which are completely new and which will require additional
resources over and above those already available if they are to be
implemented over the MGDS period.
12 Where actions are on going but only partially funded (the second bullet
above) it has been difficult, in the time available and with certain data
limitations, to
determine accurately the amount of additionality required. This exercise has
therefore focussed most attention on distinguishing between actions, which are
ongoing and fully funded (the first bullet above) and actions, which are ‘new’
and thus
completely additional in nature (the third bullet).
13 For those additional actions, new funding will have to be secured through a
combination of domestic resource mobilisation (revenues, fees, loans), funding
from
the private sector and from externally contracted loans and grants. The amount
of
additional financing available for new activities will only be known when:
1) the aggregate resource envelope is determined1/;
2) discretionary expenditure (wages and salaries; debt service; pensions and

gratuities; contingent liabilities; arrears; and transfers) has been deducted
from bullet 1);
3) the resource requirement to service on-going public sector programmes and

projects has been deducted; and
4) funding available from external grants and loans, and private sector sources
is confirmed.
14 While this approach to the costing exercise has facilitated prioritisation

within
themes of the MGDS it is only when the aggregate resource constraint is imposed
that meaningful choice over resource allocation between the thematic areas of
the
MGDS can be undertaken. This underscores the importance of moving ahead swiftly
in determining medium term resource projections consistent with the macro-fiscal
framework, subsequently enabling the adjustment of the expenditure projections
within the resource constraint.
15 The tables presented in Section 5 show the detailed costings:
1/ Although in itself this clearly cannot be expected to provide additional

resources
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• The first table presents a summary of all tables by theme and by share of
total Government expenditure and by share of real GDP;
• Table 1 comprises only P1 (the highest priority) activities for which
additional
funding is required;
• Table 2 shows all P1 actions. This table therefore includes P1 actions that
are ongoing and fully funded, those which are ongoing but only partially
funded, and those which are new and thus additional in nature;
• Table 3 shows all priorities (P1, P2 and P3) for which additional funding is
required;
• Table 4 is a reference table that comprises all activities. Any gaps in this
table
reflect the absence of submissions by the sectors, (for example see Theme
five, Sub Themes three and four and some missing actions in Theme five,
Sub Theme two). Data required to fill these gaps are under preparation but
have not been submitted in time for completion of this report.
16 Tables 1 and 3 capture some activities that are partially funded, therefore
not
all of the total requires additional funding. However, we judge that the
proportion of
those measures containing some degree of pre-committed funding is relatively
small,
compared to the total additionality requirement.
17 The tables contain formulas for those costings that originated in currencies
other than the Malawi Kwacha. Therefore as the exchange rates fluctuate the
corresponding reference cells for the US Dollar and the Euro can be easily
changed,
to automatically adjust the costings in all of the tables. The exchange rate can
be
changed by putting a different value in cells C1 or C2 (USD and EUROs
respectively) in Tables 1 to 4. The exchange rate has to be adjusted manually in
each of the main tables, although the summary table is linked and therefore does
not
have to be adjusted separately.
18 At the time of this costing exercise the official exchange rate used was
USD130 and EURO 165.
Headline Table
19 Table 1 (P1 Additional) is taken here as being the headline table as this
identifies the amount of new resources that will be required to implement the
highest
priority MGDS activities over its five year period. . We have assumed that the
activities of the National Aids Commission (NAC) are not fully funded and these
have
therefore been included as additional requirements in Table 1. Similarly, we
have
assumed that education activities are not fully funded and these have also been
included in Table 1. However, we have assumed that health sector activities are
fully
funded through the Health SWAp and these have therefore been excluded from
Table 1.
20 Furthermore, for purposes of this analysis, the Shire Zambezi Waterway has
been removed from the grand total, as this is a very large investment item,
which
skews the overall additionality requirement if it is retained.
February 2006
21 Table 1 shows that the grand total for additional financing of the highest
priority activities under all themes of the MGDS is MK138.1 billion for the five
year
period (MK28.8 billion for 2006/07) or USD 1.1 billion for the five year period.
Over
the five year MGDS period, this represents an average of 21 percent of total
Government expenditure and 8.1 percent of real GDP.
22 Including the Shire Zambezi Waterway the total additionality requirement for
P1s rises to MK463.1 billion or USD3.6 billion. This equates to 70 percent of
total
Government expenditure for the five years or 27 percent of real GDP.
23 The following table sets out the key assumptions applied to the costings.
Table of Assumptions
Ongoing ORT Assumed to be captured in the ORT budget. Only new ORT costs have
been captured.
Prices 2005/06 prices have been used to derive a constant price series for the
costings. Values are shown in absolute Malawi Kwacha.
Exchange rate For costings originating in currencies other than the Malawian
Kwacha,
the costing tables allow for adjustments to be made in the exchange
rate applied. For current purposes it has been set at the official
exchange rate in mid February 2006 of USD 130 and EURO 165.
Funding status of actions Table 1 (P1 Additional) assumes that: (i) actions of
NAC are not fully
funded and have therefore been included; (ii) that health sector actions
are fully funded through the SWAp and have therefore been excluded;
and (iii) that primary and secondary education actions are not fully
funded, as the SWAp preparation is in its early stages, and have
therefore been included.
The treatment of large
investments
The Shire Zambezi Waterway has been removed from the grand totals
in each table as this is a very large investment item which skews the
overall additionality requirement if it is retained.
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3 Outstanding Issues
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Outstanding Issues
3 Outstanding Issues
Links to the Budget and Resource Ceilings
24 This costing and prioritisation exercise has been part of a process that
seeks
to translate MGDS policy priorities into programmes and activities which are
affordable and which can therefore be implemented. This process is iterative and
will
require further rounds of prioritisation over and above the initial one
undertaken here.
25 In order to achieve an implementable plan, the MGDS must be closely linked

to the budget process and decision making over the allocation of scarce public
resources. The costing and prioritisation of activities has to be done in the
context of
available resources and this requires the determination of an aggregate resource
envelope from which policy driven expenditure ceilings by sector can be derived.
26 Ideally, this estimation of available resources should be an activity running

in
parallel to the costing and prioritisation exercise, while the previous year’s
resource
ceilings are used as a guide. A point can then be reached simultaneously in the
expenditure planning process where bottom up expenditure demands can be
reconciled with the top down aggregate resource constraint. The result of this
reconciliation exercise is a detailed expenditure framework including sectoral
ceilings
within which departments can formulate their detailed budget estimates.
27 The crucial step in achieving this is for the Government of Malawi to extend
the macro-fiscal projections, which will allow multi-year expenditure ceilings
to be
derived.
28 The imposition of these ceilings on MGDS costed activities will necessitate

further rounds of prioritisation in which hard choices over the allocation of
scarce
resources will have to be made. Critically, this will also enable prioritisation
between
and within sectors/MGDS themes.
Linkage with the PSIP (Public Sector Investment Programme)
29 The Government of Malawi’s PSIP is a crucial element of the budget

comprising the Government’s development expenditure over a rolling five year
period. As such, agreed MGDS capital investment programmes and activities should
feed into the PSIP. Over time, this should mean that the PSIP becomes
increasingly
aligned with the MGDS, especially as activities not consistent with MGDS policy
objectives are phased out.
Recurrent/Capital Expenditure Balance

30 Many of the MGDS costed activities are of a capital investment nature and
will therefore be included in the Government’s estimates of development
expenditure
and the PSIP. It is crucially important that as well as considering the
affordability of
February 2006
Outstanding Issues
these capital investments, the recurrent cost implications are considered and a
test is
made as to whether these are sustainable from a recurrent budget perspective.
This
means ensuring that there is an appropriate balance between MGDS driven capital
investments and the recurrent budget.
Synchronisation with the Budget Cycle
31 For this alignment to take place, the costing and prioritisation exercise
should
be undertaken prior to the budget formulation process, including before the
annual
review of the PSIP. This underscores the importance of synchronising effectively
the
costing and prioritisation exercise with the fiscal planning and budget
formulation part
of the expenditure management cycle. The exercise should therefore be included
at
an appropriate point in time in the Government’s budget calendar.
Expenditure Codes and Budget Classification
32 Alignment of the MGDS with the budget also requires a link to be made at the
mechanical level. For this, MGDS programmes and activities need to be allocated
expenditure codes in the budget, which should also be consistent with those used
in
the accounting system.
33 Once performance targets are determined as part of the Monitoring and

Evaluation (M&E) system, this linking of expenditures from the policy framework
(MGDS), through the budget, through the accounting system and then through to
targets under the M&E component should enable the Government to determine how
much was spent, on what, and crucially what was achieved with the expenditure
from
a policy priority perspective. This process will essentially underpin the
Government’s
accountability requirements.
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Conclusion
February 2006
Conclusion
34 This costing and prioritisation exercise is part of a broader initiative to

move
Malawi towards a policy driven budget process, becoming integrated with the
MTEF.
The budget should therefore become a key instrument for implementing the
Government’s policy priorities for growth and development.
35 Costing and prioritisation is part of the necessary process of reconciling

policy driven needs with resource availability. However, this reconciliation
cannot
take place in the absence of a hard budget constraint, as such a constraint
determines the affordability of public policy initiatives.
36 A crucial next step in this process is therefore the determination of the

aggregate resource constraint from which sector expenditure ceilings can be
derived.
This will then require further rounds of prioritisation so that MGDS activities
by theme
are made to fit within the resource envelope. The P1s presented here will
therefore
need to be subjected to further prioritisation and could be categorised as
follows: P11; P1-2; and P1-3 to reflect their rank order of importance.
Ultimately, this should
result in an implementable plan over the five year period.
37 We recommend that the following next steps are undertaken to move the
process forward.
Next Steps
• determination of the aggregate resource envelope for 2006/07 and forward

annual projections to 2010/11;
• decision making over the appropriate inter sectoral allocation of resources
and subsequent determination of sector expenditure ceilings;
• a further round of prioritisation of MGDS measures within the sector/thematic
resource constraints;
• further iterations as necessary until priority needs correspond with resource
availability, allowing the determination of a medium-term expenditure
framework; and
• formulation of detailed sector budgets consistent with this overall
expenditure
framework.
February 2006
5 Costing Tables
February 2006
Summary of all Tables Malawi Kwacha
Table 1 P1s Additional
SUMMARY BY THEME Total 2006/07 % of all themes Total 5 Years % of all themes
THEME 1 TOTAL: Sustainable Economic Growth 6,178,995,489 21.5% 29,661,469,603
21.5%
THEME 2 TOTAL: Social Protection 320,797,697 1.1% 1,115,073,460 0.8%
THEME 3 TOTAL: Social Development 13,833,384,207 48.1% 68,470,450,961 49.6%
THEME 4 TOTAL: Infrastructure 5,138,873,333 17.9% 31,142,526,193 22.6%
THEME 5 TOTAL: Good Governance 3,312,977,724 11.5% 7,702,614,000 5.6%
TOTAL B: ALL THEMES 28,785,028,449 100.0% 138,092,134,217 100.0%
SUMMARY 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL
TOTAL B: all themes 28,785,028,449 27,765,191,157 28,495,502,656 27,552,121,382
25,494,290,573 138,092,134,217
Total Government expenditure 124,995,000,000 127,757,884,001 132,399,753,000
133,307,529,001 139,306,368,001 657,766,534,003
% of total expenditure 23.0% 21.7% 21.5% 20.7% 18.3% 21.0%
Real GDP 307,800,000,000 325,652,400,000 344,865,891,001 360,384,856,001
376,602,175,000 1,715,305,322,002
% of GDP 9.4% 8.5% 8.3% 7.6% 6.8% 8.1%
Table 2 All P1s
15.1%
THEME 2 TOTAL: Social Protection 4,591,997,697 11.4% 22,407,073,460 11.2%
SUMMARY 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL
38,946,778,081 200,375,069,757
133,307,529,001 139,306,368,001 657,766,534,003
Real GDP 307,800,000,000 325,652,400,000 344,865,891,001 360,384,856,001
376,602,175,000 1,715,305,322,002
% of GDP 13.1% 12.3% 11.8% 11.2% 10.3% 11.7%
Table 3 all Priorities Additional
21.1%
SUMMARY 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL
34,703,326,059 191,647,360,055
133,307,529,001 139,306,368,001 657,766,534,003
Real GDP 307,800,000,000 325,652,400,000 344,865,891,001 360,384,856,001
376,602,175,000 1,715,305,322,002
% of GDP 13.4% 12.3% 11.2% 10.2% 9.2% 11.2%
Table 4 all Activities
14.9%
SUMMARY 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL
53,577,840,865 281,565,304,358
133,307,529,001 139,306,368,001 657,766,534,003
Real GDP 307,800,000,000 325,652,400,000 344,865,891,001 360,384,856,001
376,602,175,000 1,715,305,322,002
% of GDP 19.0% 17.8% 16.4% 15.3% 14.2% 16.4%
Table 1 P1s Additional Malawi Kwacha
Exchange rate: Malawi Kwacha to USD 130

Exchange rate: Malawi Kwacha to EURO 165
2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL Priority Observations
THEME 1 SUSTAINABLE ECONOMIC GROWTH
SUB THEME 1 Contribution to Economic Growth
Tourism
2 Develop cultural villages for the Yao, Chewa, Lomwe and
Ngoni cultures in Malawi 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000
150,000,000 P1 Figures based on the running project. Cost per
village is 60,000,000 MK
3
Upgrade to bitumen standard access roads leading to
major tourism areas and establishments (e.g. Mangochi,
Salim, Nkhata Bay)
31,616,000 65,988,000 88,920,000 0 0 186,524,000 P1
Costed at $ 20000 per Km. 125km. Special
project for tourism, access to resorts. A high
priority. Undertaken by NRA. Funded by Dept of
Tourism. Development funding via PSIP
4 In line with current tourism regulations, inspect and
classify accommodation units and restaurants into grades 24,500,000 24,500,000
24,500,000 24,500,000 24,500,000 122,500,000 P1 Figure as requested in 2005/06
budget. 18m MK
allocated to this in 2005/06
7 Undertake destination marketing in selected source
markets using the most cost-effective methods 105,000,000 105,000,000
105,000,000 105,000,000 105,000,000 525,000,000 P1 As requested for 2005/06
budget. Funds to
replace the Destination Marketing Levy
Mining
10 Revision of Mines and Minerals Act 18,000,000 10,000,000 0 0 0 28,000,000 P1
Needs 100% additional funding
11 Provide infrastructure for key mining companies (e.g.
electricity, water, roads) 150,000,000 150,000,000 150,000,000 150,000,000
150,000,000 750,000,000 P1 Private sector contribution
12
Enhance capacity to compile and interpret geological
information and disseminate to potential investors and the
public and to encourage private sector to invest in detailed
phases of mineral exploration
37,500,000 31,250,000 31,250,000 25,000,000 25,000,000 150,000,000 P1 Not funded
so 100% additionality
14 Promotion of Small Scale Miners 86,400,000 90,720,000 95,256,000 100,018,800
105,019,740 477,414,540 P1 Ongoing. Some GoM funding (about 5%). 95% of
this is additional
Garments/cotton
19 Undertake value chain analysis of the garment/cotton
sector 3,000,000 0 0 0 0 3,000,000 P1 Ongoing partly funded under JITAP
20 Increase market access for apparel in international
markets (AGOA) 5,000,000 10,000,000 10,000,000 15,000,000 15,000,000 55,000,000
P1
Manufacturing
21 Create a conducive policy and regulatory environment for
the operations of the manufacturing sector 3,500,000 3,500,000 7,500,000
1,500,000 1,500,000 17,500,000 P1 Partly to be funded by donors. Stakeholder
consultations, taskforce meetings
25 Strengthen adherence to labour protection and labour
services 105,600,000 105,600,000 105,600,000 105,600,000 105,600,000 528,000,000
P1
Policies, laws, labour inspection improvement
(creation database, capacity building), child
labour control, human trafficking, HIV/AIDS
control. Some additionality required from
introduction of new structures in ministry - 50 %
represents additionality (approx. $1 m). Based
on new structures coming out of functional
review in ministries

27 Build capacity of Malawi Bureau of Standards to certify
rather than rely on overseas certifiers 100,000,000 50,000,000 40,000,000 0 0
190,000,000 P1 Laboratory equip, accreditation
Agriculture
31 Promote large scale agricultural farming 0 P1 Majority of cost borne by the
private sector
33 Promote new farming technologies including farm
mechanization and oxanization programmes 194,728,394 194,728,394 194,728,394
194,728,394 194,728,394 973,641,968 P1 Productivity enhancing initiatives
40 Facilitate the provision of business support services to
agro-processors in Malawi 15,000,000 15,000,000 15,000,000 15,000,000 10,000,000
70,000,000 P1 Equipment, training of artisans, consultancy,
accommodation etc
42 Enhance capacity building for entrepreneurs in agroprocessing 4,500,000
4,500,000 5,000,000 5,000,000 5,000,000 24,000,000 P1 Funding includes that from
GoM
49 Construction of irrigation structures such as earth dams,
schemes etc 646,529,000 646,529,000 646,529,000 646,529,000 646,529,000
3,232,645,000 P1 Cost based on the current irrigation and water
management for food security programme.
50 Rehabilitation of existing irrigation structures 78,080,000 78,080,000
78,080,000 78,080,000 78,080,000 390,400,000 P1
100% additionality. Other existing projects
ongoing, with GoM counterpart funding. Cost
based on the current irrigation and water
management for food security programme. ORT
50m MK pa.
51 Promote modern irrigation technologies such as motorised
and treadle pumps 817,600,000 817,600,000 100,000,000 100,000,000 100,000,000
1,935,200,000 P1
Substantial part of this cost has already been
paid for. 100m MK pa GoM average contribution
towards acquisition of the pumps
58 Establish cooperatives/associations 18,000,000 18,000,000 20,000,000
20,000,000 20,000,000 96,000,000 P1
Mobilisation, residential member education,
registration and management, monitoring and
evaluation
60 Establish small scale cottage industry units in selected
areas 0 25,000,000 10,000,000 5,000,000 0 40,000,000 P1 Equipment, training of
artisans and linking them
to loans
64 Expand small stock (poultry, goats, sheep) populations
through procurement and distribution of start-up stocks 16,845,095 9,450,000
6,320,000 4,520,000 4,520,000 41,655,095 P1
High initial investment costs followed by lower
injections complimented by revolving funds. 2
goats/10 chickens for 100,000
beneficiaries+feeds. Implemented under
MASAF, Social Support Programmes
Natural Resources
66 Increase use of modern technology by local communities
and private sector for deep water fishing 14,020,000 12,920,000 0 0 0 26,940,000
P1 Expanding scale of project. Purchase of boats,
nets and engines. Additional to donor project.
68 Promote fish production from fish farming 83,700,000 98,200,000 42,500,000
48,875,000 56,206,250 329,481,250 P1
Fish ponds, fingerlings, equipment. Construction
and rehab and stocking of 500 fish ponds in
total. Presidential initiative. Costs based on
project concept note
Forestry

77 Reforestation programme 955,900,000 1,044,600,000 1,007,100,000 955,900,000
1,204,300,000 5,167,800,000 P1
1. Reforestation in priority areas, Central GoM
plantations, tree planting prog 46m MK pa.
Costing based on 37,500 Ha. 2. Integrate
reaforestation into PWP - reforestation through
MASAF or DAs - donor funded. 1.2m Euros
(2006-2011) committed by donors of which some
allocated to this action. Approx 6m MASAF for
one DA - 168m pa. Total resources approx pa
204m MK. 55,000 Ha total to replant
Regulations, Standards, Enforcement
81 Review polices and legislation for waste, sanitation and
POPs 3,500,000 4,025,000 4,628,750 0 0 12,153,750 P1 Reviewed policies. Donor
funded /GoM
89
Develop policies and strategies for coordination of
common programme and activities undertaken by the
various stakeholders
0 0 15,000,000 15,000,000 P1 Harmonised strategy
90 Define institutional position of EDO and operationalise the
environmental decentralization strategy 30,000,000 30,000,000 30,000,000
30,000,000 30,000,000 150,000,000 P1
EDO in place; decentralised env. Management
operational. GoM. District level implements,
funds via EAD, MoMNRE
Environmental Education and Awareness
91 Incorporate environmental concerns in school curricula 0 8,000,000 4,000,000
0 0 12,000,000 P1 Mainstreamed curricula. GoM
92 Undertake public awareness campaign 25,000,000 25,000,000 25,000,000
25,000,000 25,000,000 125,000,000 P1 GoM, donor funded
94 Develop environmental databases such as for state of
environment indicators policies, EIAs and legal aspects 3,000,000 3,000,000
3,000,000 3,000,000 3,000,000 15,000,000 P1 Database. GoM, donor funded
96 Provide logistical support for law enforcement (e.g.
vehicles, base radios) 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000
100,000,000 P1 This represents 50% additionality pa. 4 vehicles
pa. 2 radios pa.
97 Construct a sanctuary in Kasungu National Park in order
to repopulate the park 10,000,000 7,500,000 5,000,000 2,500,000 25,000,000 P1
100% additional
98
Develop new and rehabilitate existing infrastructure
(including staff houses, roads, bridges, bore holes,
electricity supply)
40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 200,000,000 P1
100% additional. Additional above the
infrastructure to be provided/rehabilitated by
other GoM departments. Based on 2 protected
areas pa
102 Construct new and rehabilitate existing perimeter electric
fences for all protected areas 36,000,000 27,000,000 1,800,000 5,000,000
4,000,000 73,800,000 P1 100% additional. Coverage here is prioritised to
cover 4 protected areas
SUB THEME 1 TOTAL 3,712,518,489 3,805,690,394 2,961,712,144 2,755,751,194
3,002,983,384 16,238,655,603
SUB THEME 2 Enabling Environment for Private
Sector Led Growth
107 Implement occupational safety and health for labour 5,000,000 20,000,000
20,000,000 20,000,000 15,000,000 80,000,000 P1
Development of laboratories, procurement of
equipment. Creation of HIV/AIDS unit in MoLVT.
100% additionality but may secure some funding
from donors

108
Expand capacity of existing vocational training institutions,
including training more instructors in vocational training
areas (TEVET)
225,000,000 225,000,000 500,000,000 500,000,000 500,000,000 1,950,000,000 P1
Infrastructure, training, recruitment. Training unit
cost is MK600,000 pa. 350 trained within 5 yr
period. Building unit cost 5.8m MK pa.
Workshop cost min 30m MK. Increase from
07/08 to 08/09 due to recruitment, holding
expenses for more students and upgrading of
institutions. Some donor assistance anticipated
but most of this is additional requirement
111 Increase efficiency of one-stop-shop for attracting outside
investors and clarify laws to enable this 2,000,000 2,500,000 2,500,000
3,000,000 10,000,000 P1
112 Develop and implement the National Export Strategy 20,000,000 20,000,000 P1
Partly funded by donors. Travel,
accommodation, meetings, consultations etc
113 Design, develop and implement Private Sector
Development Strategy and action matrix 7,000,000 60,000,000 80,000,000
100,000,000 100,000,000 347,000,000 P1
Yr 1 strategy design. Establishment of new
department, yr 2. 14 core staff. Additional
recurrent costs for last 3 years. Ongoing work to
mainstream PSD. Partially private sector and
other non GoM funded
117 Review of policies and laws affecting domestic trade 10,000,000 8,000,000
1,000,000 1,000,000 0 20,000,000 P1
118 Develop employment and labour policy 30,000,000 15,000,000 45,000,000 P1
Labour market surveys (120m MK for labour
force sample survey), policy development,
documentation, advocacy, and labour market
system development. 100% additional
requirement. To be undertaken in 1st two years
119 Integrate message of good governance into promotional
themes 15,000,000 25,000,000 25,000,000 15,000,000 5,000,000 85,000,000 P1
Social partnership programmes
SUB THEME 2 TOTAL 314,000,000 355,500,000 628,500,000 639,000,000 620,000,000
2,557,000,000
SUB THEME 3 Food Security
120 Improve reliability of fertilizer markets 3,467,000 3,467,000 3,467,000
3,467,000 3,467,000 17,335,000 P1 Ongoing activity
122 Manage strategic grain reserve effectively (NFRA) 72,000,000 72,000,000
72,000,000 72,000,000 72,000,000 360,000,000 P1
Operations and salaries. Physical presence of at
least 60,000 MT of maize at all times. Based on
05/06 requirement - reduced to MK50m for
budget. PE 22m, i.e. 70% of total is not PE
123 Develop a reliable agricultural statistics and an early
warning system 8,377,000 8,377,000 2,750,000 2,750,000 2,750,000 25,004,000 P1
Statistics to feed into early warning system
124 Promote a coordinated approach to planning and
management of food aid 3,653,000 3,653,000 3,653,000 3,653,000 3,653,000
18,265,000 P1
SUB THEME 3 TOTAL 87,497,000 87,497,000 81,870,000 81,870,000 81,870,000
420,604,000
SUB THEME 4 Regional Integration
126 Increase trade information and access to market 75,000,000 50,000,000
20,000,000 15,000,000 15,000,000 175,000,000 P1 Project to be co-funded by
donors and GoM.
After 2008/09 totally GoM funded

132 Establish Fair Trade Commission 112,480,000 112,480,000 50,000,000
50,000,000 50,000,000 374,960,000 P1 Project funded for 1st two yrs. Last 3 yrs
running
costs of Commission, self generated
133
Export Promotion Council enabled to coordinate
adequately export promotion activities in Malawi/Re orient
MEPC
90,000,000 90,000,000 70,000,000 70,000,000 70,000,000 390,000,000 P1 Export
development Initiatives. Need to
reinvigorate council: build capacity, equipment
SUB THEME 4 TOTAL 277,480,000 252,480,000 140,000,000 135,000,000 135,000,000
939,960,000
SUB THEME 5 Economic Empowerment
134 Strengthen the policy environment for micro finance 8,000,000 1,000,000
1,000,000 0 0 10,000,000 P1
135
Strengthen core function of ADMARC in geographical
areas which are underserved by the private sector
including through reform of ADMARC
540,000,000 540,000,000 540,000,000 540,000,000 540,000,000 2,700,000,000 P1
Average annual Government contribution to
ADMARC operations. PE only, 04/05 and 05/06
budget. Not adjusted yr on yr
139 Develop a national economic empowerment act 15,000,000 20,000,000 20,000,000
10,000,000 10,000,000 75,000,000 P1
141 Provide technical support from private sector programs
(related to off farm employment) 50,000,000 50,000,000 60,000,000 40,000,000
50,000,000 250,000,000 P1 100% additional requirement. To be funded by
private sector
145 Review the role played by public institutions such as
SEDOM, DEMAT in the Empowerment Programme 12,000,000 15,000,000 0 0 0 27,000,000
P1
146 Strengthen institutions providing entrepreneurial and
business training 45,000,000 50,000,000 5,000,000 0 0 100,000,000 P1
149
Formulate and execute an improved training programme
on small scale business management (OVOP) - capacity
building
66,600,000 66,600,000 66,600,000 39,100,000 39,100,000 278,000,000 P1 OVOP
project. To be donor funded and also
GoM
150 Promote marketing of goods and services (OVOP) 51,900,000 51,900,000
51,900,000 26,400,000 26,400,000 208,500,000 P1
151 Develop a programme that will oversee the establishment
of cooperatives in rural areas 2,000,000 750,000 750,000 750,000 750,000
5,000,000 P1
157 Establish Credit Reference Bureau 50,000,000 10,000,000 10,000,000
10,000,000 10,000,000 90,000,000 P1 Set up costs (MFI). Private sector funded
158 Establish network of practitioners in MFI 2,000,000 3,000,000 3,000,000
3,000,000 3,000,000 14,000,000 P1
165
Improve capacity of the Malawi Council for the
Handicapped and other similar institutions that deliver
services to people with disabilities
25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 125,000,000 P1
166 Vocational training and skills 210,000,000 210,000,000 150,000,000
150,000,000 150,000,000 870,000,000 P1
Community Skill Centres or Village Polytechnics.
Infrastructure and training. Rehabilitation centres
for people with disabilities
SUB THEME 5 TOTAL 1,077,500,000 1,043,250,000 933,250,000 844,250,000
854,250,000 4,752,500,000
SUB THEME 6 Land Issues
169 Implement public awareness activities regarding property
rights of vulnerable groups 30,000,000 25,000,000 13,000,000 0 0 68,000,000 P1
100% additional
170 Intensify resettlement and land development programmes 300,000,000
400,000,000 600,000,000 1,000,000,000 1,000,000,000 3,300,000,000 P1
Funding for this activity is already secured and
represented here but will require additional
resources if pilot (currently covering 4 districts) is
to be rolled out to all districts

172 Customary land regularisation, titling and registration 280,000,000
282,250,000 400,000,000 162,500,000 0 1,124,750,000 P1 100% additional
174 Promote public awareness on land rights and land policy
in general 15,000,000 20,000,000 20,000,000 5,000,000 5,000,000 65,000,000 P1
100% additional
175 Finalise and enact the Land Bill 15,000,000 5,000,000 0 0 0 20,000,000 P1
100% additional
176 Develop a Land Use Policy 15,000,000 10,000,000 0 0 0 25,000,000 P1 100%
additional
183 Improve capacity in the land sector for implementing a
National Land Reform Programme 20,000,000 15,000,000 15,000,000 10,000,000
10,000,000 70,000,000 P1 As currently shown this is 100% additional but
there is a high chance of donor funding
185 Review all charges on land services rendered 10,000,000 20,000,000 5,000,000
0 0 35,000,000 P1 100% additional
186
Review the 1999 National Housing Policy in order to realign it to the new
National Land Policy and other
Government policies and protocols
10,000,000 15,000,000 0 0 0 25,000,000 P1 100% additional
189 Review the draft Building Regulations and Standards 15,000,000 5,000,000 0 0
0 20,000,000 P1 100% additional
SUB THEME 6 TOTAL 710,000,000 797,250,000 1,053,000,000 1,177,500,000
1,015,000,000 4,752,750,000
THEME 1 GRAND TOTAL 6,178,995,489 6,341,667,394 5,798,332,144 5,633,371,194
5,709,103,384 29,661,469,603
THEME 2 SOCIAL PROTECTION
SUB THEME 1 Protecting the Vulnerable
193 Create an enabling environment for child protection 71,000,000 71,000,000
71,000,000 71,000,000 71,000,000 355,000,000 P1 Represents 100% additionality
201
Practice better prioritisation, design, delivery, and review
of safety nets/social protection programmes framework to
be consistent with MGDS
12,000,000 6,000,000 3,000,000 1,500,000 1,500,000 24,000,000 P1 Consultancy
costs, workshops
206 Review effectiveness of current public works programs,
feeding programs, targeted input programs 7,000,000 7,000,000 P1 1 study
208 Increased access to rehabilitation services by persons
with disabilities 53,750,000 53,750,000 53,750,000 53,750,000 53,750,000
268,750,000 P1
209 Develop braille literacy programmes 25,000,000 25,000,000 P1
Equipment for braille printing and workshops.
print chichewa braille primers K500,000;
purchase of a braille emboss K2,000,000; braille
writing slates 100 x K2,500 =K250,000
210 Improving access to and quality of adult education
programme for illiterate adults in Malawi 65,381,030 16,551,730 16,374,800
16,567,070 60,448,830 175,323,460 P1 100% additionality
211 Fight against child labour 86,666,667 86,666,667 86,666,667 0 0 260,000,000
P1
Donor project. 2m $ over 3yrs, 20m MK GoM
contribution needed (this is the additionality
requirement)
SUB THEME 1 TOTAL 320,797,697 233,968,397 230,791,467 142,817,070 186,698,830
1,115,073,460
SUB THEME 2 Disaster Management FULLY FUNDED
THEME 2 GRAND TOTAL 320,797,697 233,968,397 230,791,467 142,817,070 186,698,830
1,115,073,460
THEME 3 SOCIAL DEVELOPMENT
SUB THEME 1 Health FULLY FUNDED
SUB THEME 2 Nutrition

231
Promotion of adoption of appropriate diet and healthy
lifestyles through education and counselling
367,617 367,617 367,617 367,617 367,617 1,838,085 P1 Estimate based on Nutrition
Policy
232
Promotion of control, prevention and treatment of
micronutrient deficiency disorders particularly those
caused by Vitamin A, Iodine and iron deficiencies
213,000 213,000 113,000 113,000 100,000 752,000 P1 Estimate based on activities
in Nutrition Policy
233
diseases that have direct impact on nutrition and health
status
346,000 346,000 276,800 221,440 177,152 1,367,392 P1 Estimate based on ruling
average commercial
rates
234
Policy coordination, implementation and monitoring of
nutrition programmes
300,000 300,000 300,000 300,000 300,000 1,500,000 P1 Based on policy
235
Build capacity of nutritionists, dieticians and community
nutrition workers
150,000 100,000 100,000 100,000 100,000 550,000 P1 Estimated cost of training
236 Nutrition surveillance 45,000 50,000 50,000 50,000 50,000 245,000 P1
Estimated cost of spot checks etc
237
Establishment of nutrition resource centres at all levels
(i.e. central, districts and community levels)
350,000 300,000 300,000 300,000 300,000 1,550,000 P1 Cost of number of centres
to be established and
their requirements
238
Enhance data collection, analysis and dissemination on
nutrition
60,000 60,000 60,000 60,000 60,000 300,000 P1 Cost of data collection, analysis
and
dissemination
SUB THEME 2 TOTAL 1,831,617 1,736,617 1,567,417 1,512,057 1,454,769 8,102,477
SUB THEME 3 HIV/AIDs
Prevention and Behaviour change
247 Expand and scale up the scope and depth of HIV and
AIDS communication at local level 3,275,609,350 3,950,670,750 2,353,423,150
1,189,598,150 1,189,598,150 11,958,899,550 P1
248 Promote and support HIV protective interventions
especially designed for young people 165,945,000 147,745,000 147,745,000
148,232,500 148,232,500 757,900,000 P1
249 Reduce the vulnerability of Malawians to HIV infection,
especially girls and women 282,029,735 119,042,235 282,029,735 119,042,235
119,042,235 921,186,175 P1
250 Strengthen socio-cultural values and practices that
prevent the spread of HIV 6,630,000 14,430,000 10,725,000 14,917,500 14,917,500
61,620,000 P1
251 Promote safer sex practices among the high-risk groups
and in high-risk settings 264,030,000 253,539,000 318,916,000 357,266,000
357,266,000 1,551,017,000 P1
252 Increase district and community level outreach for
changing practices 256,061,000 330,161,000 263,373,500 232,661,000 232,661,000
1,314,917,500 P1
253 Increase access to quality STI syndromic management,
counselling and information 410,579,000 383,037,200 387,353,200 379,462,200
379,358,200 1,939,789,800 P1
254
Expand the scope, coverage and equal access by all
Malawians to HIV testing and counselling services
especially in rural areas
990,748,200 1,193,203,700 1,338,498,200 1,512,178,200 1,512,178,200
6,546,806,500 P1
255 Expand the scope, quality and coverage of PMTCT
services throughout the country 316,782,050 242,093,800 238,583,800 139,965,800
139,965,800 1,077,391,250 P1
256
Increase access to safe blood, blood products and tissue
services throughout the country including availability of
adequate infection prevention materials and procedures
168,018,500 169,318,500 132,106,000 51,018,500 51,018,500 571,480,000 P1
Equitable treatment for PLHA and mitigate the health
impacts of HIV/AIDS
257 Increase equitable access to ARVs and OI drugs 2,786,875,000 3,656,250,000
4,525,625,000 5,395,000,000 5,395,000,000 21,758,750,000 P1

Mitigation of socio-economic and psychosocial
impacts of HIV/AIDS
264 Improve OVC access to essential social and community
based services 1,914,218,800 1,821,138,800 1,843,628,800 1,704,788,800
1,704,788,800 8,988,564,000 P1
SUB THEME 3 TOTAL 10,837,526,635 12,280,629,985 11,842,007,385 11,244,130,885
11,244,026,885 57,448,321,775
SUB THEME 4 Education
Primary
272 Reduce primary school cycle to 7 years from 8 years 117,000,000 117,000,000
117,000,000 117,000,000 117,000,000 585,000,000 P1
Reorganize curriculum, construction of schools.
$10m for 10y. Capital (55%): Needs feeder
schools K. 1500 satellite schools 6 class rooms
each. ORT (45%): $2 per studentx400000pa
274
Train new and current teachers, provide attractive terms /
conditions, especially to go to rural area, & professional
development
357,825,000 328,110,714 627,110,714 692,110,714 714,396,429 2,719,553,571 P1
Train 45000 existing teachers; train 4000 new
teachers; 3000 new housing ($8000). Training
costs 33%; PE 39%; capital 29%
276 Improve overall management and monitoring of
inspection, supervision and advisory 15,759,366 15,759,366 15,759,366 15,759,366
15,759,366 78,796,830 P1
Primary school inspection: 84 new inspectors;
25$ per headteacher (5159). PE 73%; training
cost 27%
281 Establish a college for special needs teacher education 975,000,000 0 0 0 0
975,000,000 P1 One off cost of $7.5m for establishing one school
284
Continually revise and improve the relevance of the
curriculum to include academic and non academic needs
of pupils and the effective orientation of teachers –
introduce PCAR curriculum
35,687,282 36,164,465 36,894,371 37,632,765 38,379,817 184,758,700 P1
Prim Cur under Assessmt Reform, new
curriculum starts in 2006, outcome based for the
pupil. ORT - $2 per 1or2 pupils; training - $10
per teacher pa. TA 28%; ORT 63%; training 9%
285 Provide in service training and incentives to school
managers, inspectors and senior teachers 3,182,400 3,182,400 3,182,400 3,182,400
3,182,400 15,912,000 P1 $240pc pa for 1020 master teachers. Covers
also managers, inspectors. Training only
Secondary
287 Identify and rehabilitate all existing dilapidated school
facilities, construct new schools 306,881,250 306,881,250 306,881,250
306,881,250 306,881,250 1,534,406,250 P1 $8000 per class room, 600 class rooms
for
approved comm day secondary schools (CDSS)
290 Train and supply adequate number of qualified teachers
and improve terms and conditions 622,050,000 635,050,000 645,450,000 660,400,000
678,600,000 3,241,550,000 P1
Aiming for teacher pupil ratio of 1:40, aim to
increase supply of teachers to 5600 (2015) from
2500 (2005). Takes account of attrition rate and
increasing numbers of pupils
291 Up-grade under qualified teachers through in service
education 58,500,000 58,500,000 58,500,000 58,500,000 58,500,000 292,500,000 P1
296 Review policies related to orphans, other vulnerable
children and SN education 1,392,857 1,392,857 1,392,857 1,392,857 1,392,857
6,964,286 P1
2 workshops per year at 500,000 each. Needs
assessment 400,000. Writing the report policy at
100,000. Altogether 1.5 million per year
298
Introduce and implement curriculum responsive to needs
of individuals and the nation by including academic and
non-academic subjects
6,500,000 6,500,000 6,500,000 71,500,000 46,428,571 137,428,571 P1 TA $1m in
2009/10 plus capital exp

302 Improve District Educational Management Information
System (DEMIS) 12,714,000 12,714,000 12,714,000 12,714,000 12,714,000 63,570,000
P1 Roll out of EMIS to districts - training cost
involved. $100 per school pa, 978 schools
304 Improve flow of funds and train managers in financial
management in public schools 0 0 0 0 0 0 P1
305 Train school managers in financial management 1,300,000 1,300,000 1,300,000
1,300,000 1,300,000 6,500,000 P1
Tertiary
307 Rehabilitate and expand physical infrastructure 45,230,000 214,000,000
259,230,000 P1 From strategic plan
309 Develop a student financing policy including a student
loan scheme 6,678,000 8,468,000 140,000 140,000 140,000 15,566,000 P1 Funding
through financial institutions. Not GoM
funded
314 Develop comprehensive policies on research and
development 25,000,000 25,000,000 50,000,000 P1 Consultancy costs
315 Provide adequate teaching and learning materials 9,385,800 13,836,400
12,756,300 13,076,200 13,370,800 62,425,500 P1
320 Improve procurement and distribution system and monitor
delivery of supplies 1,120,000 2,100,000 1,260,000 1,120,000 1,190,000 6,790,000
P1
322 Strengthen financial management 300,000,000 300,000,000 P1
SUB THEME 4 TOTAL 2,901,205,955 1,785,959,453 1,846,841,259 1,992,709,552
2,009,235,490 10,535,951,709
SUB THEME 5 Gender
323 Strengthen institutional capacity for effective co-ordination
of gender policy implementation 64,220,000 64,220,000 64,220,000 64,220,000
64,220,000 321,100,000 P1 Represents 100% additional requirement
326 Break the cultural/traditional factors that create and
perpetuate gender inequalities 28,600,000 28,925,000 30,875,000 33,475,000
35,100,000 156,975,000 P1 100 % additionality requirement
SUB THEME 5 TOTAL 92,820,000 93,145,000 95,095,000 97,695,000 99,320,000
478,075,000
13,354,037,144 68,470,450,961
THEME 4 INFRASTRUCTURE
SUB THEME 1 Transport
Roads
327
Routine maintenance, periodic maintenance, rehabilitation
and upgrading of the road network, replacement of timber
decked bridges
1,387,880,000 1,489,020,000 1,523,730,000 1,587,170,000 1,625,910,000
7,613,710,000 P1
This item is budgeted at MK10 billion in 05/06.
This run of data is taken from the NRA business
plan and represents 100% additional
requirement
328 Develop an integrated approach to road safety 6,500,000 4,000,000 4,200,000
5,800,000 5,900,000 26,400,000 P1 100% additional
330 Infrastructure development 20,000,000 20,000,000 2,000,000 2,000,000
2,000,000 46,000,000 P1
This item relates to construction of new testing
centres and provision of required equipment.
100% additional in each year
333 Improved mobility and accessibility of rural communities to
goods and services in the rural areas 540,000,000 594,060,000 653,466,000
718,812,600 790,694,260 3,297,032,860 P1 06/07 should be covered in the budget.
Other
years 100% additional
Shipping
334 Provide navigations and hydrographic charts 195,000,000 65,000,000 0 0 0
260,000,000 P1 100% additional
339 Strengthen the national maritime administration 6,500,000 6,500,000 0 0
13,000,000 P1 100% additional
341 Shire Zambezi waterway 65,000,000,000 65,000,000,000 65,000,000,000
65,000,000,000 65,000,000,000 325,000,000,000 P1 100% additional
Civil Aviation
342 Implement conventions to benefit Malawi and to fulfil
obligations to international organisations 32,500,000 500,000 500,000 500,000
500,000 34,500,000 P1 100% additional

344 Construct targeted landing strips for tourism related areas 10,000,000
10,000,000 10,000,000 5,000,000 5,000,000 40,000,000 P1 100% additional
345 Institute and monitor maintenance programmes for both
aerodromes and aviation equipment 1,000,000,000 500,000,000 500,000,000
500,000,000 500,000,000 3,000,000,000 P1
About MK1 billion has been secured but has not
been allocated to any particular year for
rehabilitation of Kamuzu International Airport so
remaining MK4 billion of this for 06/07-10/11 is
additional requirement
SUB THEME 1 TOTAL 68,191,880,000 67,689,080,000 67,700,396,000 67,819,282,600
67,930,004,260 339,330,642,860
SUB THEME 2 Energy
358 Accelerate the establishment of the Malawi Energy
Regulatory Authority 25,000,000 0 0 0 0 25,000,000 P1 Indicator: Authority
established
360
Implement framework for private sector to operate with the
Government (PPP) to participate in the electricity sector
(institutional framework, etc.)
7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 37,500,000 P1 Indicator:
Independent Power operators
363 Expand network to rural growth centres 70,000,000 70,000,000 70,000,000
70,000,000 70,000,000 350,000,000 P1 Indicator: No. of centres electrified
SUB THEME 2 TOTAL 102,500,000 77,500,000 77,500,000 77,500,000 77,500,000
412,500,000
SUB THEME 3 Water Supply and Sanitation
365
Empower national authority to manage water resources
using IWRM approach and establish monitoring systems
including the establishment and maintenance of a register
of all actors in water and sanitation, conduct research to
establish resource potential and guides
3,250,000 16,250,000 21,666,667 16,250,000 7,583,333 65,000,000 P1 100%
additional
366
Promote water resource conservation, harvesting and
protection in an integrated manner including development
of small community and large dams (conservation areas
defined), and the development of lake-level regulatory
structures at Liwonde and Mangochi
4,333,333 9,316,667 17,604,167 38,404,167 32,175,000 101,833,333 P1 100%
additional
367
Proactively implement management of water resources
and incorporate local governments and communities in
planning and management of water and sanitation
including catchment protection and rehabilitation
2,166,667 16,250,000 9,100,000 9,100,000 9,100,000 45,716,667 P1 100% additional
370 Revise Water Resources Act of 1969 and Water Works
Act 21,666,667 13,000,000 34,666,667 P1 100% additional
371 Provide incentives for LA to promote community watershed rehabilitation
programs 10,833,333 16,250,000 21,666,667 21,666,667 21,666,667 92,083,333 P1
100% additional
372 Build capacity in IWRM 10,833,333 10,833,333 10,833,333 10,833,333
10,833,333 54,166,667 P1 100% additional
373 Develop integrated water resources management master
plans and investment strategies 21,666,667 13,000,000 34,666,667 P1
Water quality and pollution control
374 Rehabilitate, construct and equip water laboratories 54,166,667 54,166,667
108,333,333 P1 100% additional
Urban, Peri-Urban and Market Centres

380 Develop national water and sanitation services regulatory
framework 10,833,333 21,666,667 32,500,000 P1 100% additional
381 Rehabilitate existing water supply systems 66,516,667 399,750,000
399,750,000 333,233,333 66,516,667 1,265,766,667 P1 100% additional
382 Extend existing urban water supply systems 13,000,000 270,833,333
1,083,333,333 813,583,333 270,833,333 2,451,583,333 P1 100% additional
383 Construct new water supply systems 3,250,000 189,583,333 812,500,000
1,354,166,667 352,083,333 2,711,583,333 P1 100% additional
Rural Water Services
387 Construct and rehabilitate and extend rural piped water
systems 130,000,000 270,833,333 452,833,333 396,500,000 227,500,000
1,477,666,667 P1 100% additional
388 Construct and rehabilitate boreholes and shallow wells 86,666,667
162,500,000 390,000,000 390,000,000 97,500,000 1,126,666,667 P1 100% additional
SUB THEME 3 TOTAL 439,183,333 1,464,233,333 3,219,287,500 3,383,737,500
1,095,791,667 9,602,233,333
SUB THEME 4 Information, Communication and
Technology
394 Enact appropriate legislation that promotes and
participation in the information age and economy 26,000,000 0 0 0 0 26,000,000
P1
395 Create a working and efficient government wide area
network (GWAN) 208,000,000 208,000,000 208,000,000 208,000,000 208,000,000
1,040,000,000 P1
397 Promote local and foreign investment, innovative
production, R&D and diffusion of ICTs – private sector 13,000,000 13,000,000
13,000,000 13,000,000 13,000,000 65,000,000 P1 Private sector funded
401
Improve public access to information and services to
facilitate business and administrative processes to
increase productivity and economic growth
65,000,000 65,000,000 65,000,000 65,000,000 65,000,000 325,000,000 P1
403 Promote the deployment and exploitation of ICTs in the
public and private sector (improve E-governance) 9,650,000 9,650,000 9,650,000
9,650,000 9,650,000 48,250,000 P1
Telecommunications
405 Telecommunications fund provided for rural
telecommunications 330,000 330,000 330,000 330,000 330,000 1,650,000 P1
407 Procurement and installation of modern
telecommunications equipment 330,000 330,000 330,000 330,000 330,000 1,650,000
P1
Broadcasting
410 Acquisition of broadcasting equipment 13,000,000 13,000,000 13,000,000
13,000,000 13,000,000 65,000,000 P1
411 Building of purpose built stations 26,000,000 26,000,000 26,000,000
26,000,000 26,000,000 130,000,000 P1
SUB THEME 4 TOTAL 322,310,000 296,310,000 296,310,000 296,310,000 296,310,000
1,507,550,000
SUB THEME 5 Science, Technology, Research and
Development
415 Establish the Lilongwe University of Science and
Technology 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
5,000,000,000 P1 Presidential initiative. 100% additional
417 Train staff in specialized science and technology fields 25,000,000
25,000,000 25,000,000 25,000,000 25,000,000 125,000,000 P1 100% additional
418 Establishment of a technology park and incubation centre 8,000,000 6,000,000
200,000 200,000 200,000 14,600,000 P1 100% additional
419 Support STI programs in the local communities 15,000,000 15,000,000
15,000,000 15,000,000 10,000,000 70,000,000 P1 100% additional

422 Review policy and regulatory framework science and
technology 0 3,000,000 0 0 0 3,000,000 P1 100% additional
423 Review S&T Act 0 2,000,000 0 0 0 2,000,000 P1 100% additional
427 Strengthen public/private partnership in usage of science,
technology and innovation 5,000,000 0 0 0 0 5,000,000 P1 100% additional
429 Development of an intellectual property policy 5,000,000 0 0 0 0 5,000,000
P1 100% additional
432 Support multidisciplinary research and development 5,000,000 5,000,000
5,000,000 5,000,000 5,000,000 25,000,000 P1 100% additional
435 Strengthening of Malawi industrial research and
technology development centre 20,000,000 20,000,000 40,000,000 P1 100%
additional
SUB THEME 5 TOTAL 1,083,000,000 1,076,000,000 1,045,200,000 1,045,200,000
1,040,200,000 5,289,600,000
70,439,805,927 356,142,526,193
THEME 5 GOOD GOVERNANCE
SUB THEME 1 Macroeconomic Stability
439 Strengthen the capacity of Treasury’s Public Expenditure
Monitoring Unit 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 6,500,000 P1
100% additional
443
Undertake tax reforms to improve the incentives for
household saving and investment and the equity of tax
administration
9,750,000 9,750,000 9,750,000 9,750,000 9,750,000 48,750,000 P1 100% additional
SUB THEME 1 TOTAL 11,050,000 11,050,000 11,050,000 11,050,000 11,050,000
55,250,000
SUB THEME 2 Public Sector Management
444
Implement performance management systems, and
transparent appointment and promotion of personnel
based on merit and performance
158,010,924 158,010,924 142,209,832 127,988,848 115,189,964 701,410,491 P1 100%
additional
458 Provide national registration and identification to voting
age persons 2,000,000,000 1,000,000,000 1,000,000,000 500,000,000 500,000,000
5,000,000,000 P1 Min of Home Affairs
SUB THEME 2 TOTAL 2,158,010,924 1,158,010,924 1,142,209,832 627,988,848
615,189,964 5,701,410,491
SUB THEME 3 Decentralisation
460 Complete sector devolution to districts. 171,626,000 59,248,540 24,914,500
17,062,500 17,062,500 289,914,040 P1
No inputs received from sector, therefore figures
obtained from National Decentralisation
Programme II 2005-2009, and projected for
2010/11
461 Expand local revenue generating capacity 87,750,000 87,750,000 58,500,000
58,500,000 58,500,000 351,000,000 P1
2010/11
SUB THEME 3 TOTAL 259,376,000 146,998,540 83,414,500 75,562,500 75,562,500
640,914,040
SUB THEME 4 Justice, Security and Rule of Law
471 Increase the intake and training for various legal
professional groups including specialized field 66,746,800 49,821,800 49,821,800
49,821,800 49,821,801 266,034,000 P1 100% additional
477 Facilitate the development of record-keeping systems 20,000,000 14,285,714
10,884,354 8,638,376 8,227,025 62,035,469 P1 100% additional. Capital cost for
electronic
database

481
Establish information linkages between the police, courts,
prisons (piloted at one point- penal reform was
coordinating) to improve case flow
10,720,000 10,720,000 10,720,000 10,720,000 10,720,000 53,600,000 P1 100%
additional
482 Promote dialogue through court user committees 0 0 0 0 0 0 P1
488 Rehabilitate sub-standard structures (including addressing
utility provision) to an acceptable standard 27,000,000 24,000,000 24,000,000
24,000,000 24,000,000 123,000,000 P1
100% additional. Covers 12 court centres pa >
60 in total. Estimated at MK10 million per court.
Assumed 5% increase in inputs pa
491 Improve case management (legal) 6,000,000 6,000,000 6,000,000 6,000,000
6,000,000 30,000,000 P1 100% additional
505 Create a fully functioning commercial division of the High
Court 750,000,000 0 0 0 0 750,000,000 P1 100% additional. Costs based on
construction of
new Blantyre Court
506 Review rules of procedure as they apply to commercial
cases and enhance the role of the Small Claims Courts 4,074,000 4,074,000
4,074,000 4,074,000 4,074,000 20,370,000 P1
SUB THEME 4 TOTAL 884,540,800 108,901,514 105,500,154 103,254,176 102,842,825
1,305,039,469
THEME 5 GRAND TOTAL 3,312,977,724 1,424,960,978 1,342,174,485 817,855,524
804,645,289 7,702,614,000
TOTAL A: ALL THEMES 93,785,028,449 92,765,191,157 93,495,502,656 92,552,121,382
90,494,290,573 463,092,134,217
TOTAL B: ALL THEMES Less Shire Zambezi waterway 28,785,028,449 27,765,191,157
28,495,502,656 27,552,121,382 25,494,290,573 138,092,134,217
Table 2 all P1s Malawi Kwacha

Tourism
3
Salim, Nkhata Bay)
31,616,000 65,988,000 88,920,000 0 0 186,524,000 P1
budget. 18m MK
budget. Funds to
Mining
12
37,500,000 31,250,000 31,250,000 25,000,000 25,000,000 150,000,000 P1 Not funded
this is additional
9 Update geological and mineral data acquisition
(remapping the geology of Malawi) 50,000,000 25,000,000 25,000,000 25,000,000
25,000,000 150,000,000 P1F Ongoing. Some GoM funding (about 5%). 10% of
this is additional
Garments/cotton
markets (AGOA) 5,000,000 10,000,000 10,000,000 15,000,000 15,000,000 55,000,000
P1
Manufacturing
services 105,600,000 105,600,000 105,600,000 105,600,000 105,600,000 528,000,000
P1
30 Promote production of goods and services (OVOP) 4,500,000 4,500,000 4,500,000
3,000,000 3,000,000 19,500,000 P1F Project funded. Not additional
Agriculture
private sector
accommodation etc
GoM
schemes etc 646,529,000 646,529,000 646,529,000 646,529,000 646,529,000
78,080,000 78,080,000 78,080,000 390,400,000 P1
50m MK pa.
1,935,200,000 P1
20,000,000 20,000,000 96,000,000 P1
evaluation
to loans
6,320,000 4,520,000 4,520,000 41,655,095 P1
53 Reach farmers with extension services 8,718,931 8,718,931 8,718,931 8,718,931
8,718,931 43,594,655 P1F Ongoing programme
62 Put in place strategies to help livestock farmers reach
markets 2,650,000 2,650,000 2,650,000 2,650,000 2,650,000 13,250,000 P1F Ongoing
activity
63 Strengthen advisory services in the production and
marketing of livestock and its products 12,116,100 12,116,100 12,116,100
12,116,100 12,116,100 60,580,500 P1F Ongoing activity
Natural Resources
48,875,000 56,206,250 329,481,250 P1
71 Promote regional and international trade 20,900,000 46,600,000 30,900,000
35,535,000 40,865,250 174,800,250 P1F
Trade regulatory framework, policy, competent
authority. Impact studies and consultations for
EPA and afterwards. Donor funded 1.6m Euros
for studies and consultations (240m MK)
uncertain.
Forestry

1,204,300,000 5,167,800,000 P1
funded /GoM
89
30,000,000 30,000,000 150,000,000 P1
83 Design and implement economic instruments to promote
sound environmental management 13,000,000 13,000,000 5,000,000 0 0 31,000,000
P1F Economic instruments. Donor funded
pa. 2 radios pa.
100% additional
98
electricity supply)
40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 200,000,000 P1
areas pa
SUB THEME 1 TOTAL 3,824,403,520 3,918,275,425 3,050,597,175 2,842,771,225
3,095,333,665 16,731,381,008
Sector Led Growth
20,000,000 20,000,000 15,000,000 80,000,000 P1
from donors
108
areas (TEVET)
225,000,000 225,000,000 500,000,000 500,000,000 500,000,000 1,950,000,000 P1
3,000,000 10,000,000 P1
100,000,000 100,000,000 347,000,000 P1
1,000,000 1,000,000 0 20,000,000 P1
themes 15,000,000 25,000,000 25,000,000 15,000,000 5,000,000 85,000,000 P1
SUB THEME 2 TOTAL 314,000,000 355,500,000 628,500,000 639,000,000 620,000,000
2,557,000,000
72,000,000 72,000,000 72,000,000 360,000,000 P1
warning system 8,377,000 8,377,000 2,750,000 2,750,000 2,750,000 25,004,000 P1
18,265,000 P1
SUB THEME 3 TOTAL 87,497,000 87,497,000 81,870,000 81,870,000 81,870,000
420,604,000
donors and GoM.
running
133
MEPC
90,000,000 90,000,000 70,000,000 70,000,000 70,000,000 390,000,000 P1 Export
SUB THEME 4 TOTAL 277,480,000 252,480,000 140,000,000 135,000,000 135,000,000
939,960,000
1,000,000 0 0 10,000,000 P1
135
540,000,000 540,000,000 540,000,000 540,000,000 540,000,000 2,700,000,000 P1
10,000,000 10,000,000 75,000,000 P1
private sector
P1
149
building
66,600,000 66,600,000 66,600,000 39,100,000 39,100,000 278,000,000 P1 OVOP
GoM
51,900,000 26,400,000 26,400,000 208,500,000 P1
5,000,000 P1
3,000,000 3,000,000 14,000,000 P1
165
25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 125,000,000 P1
150,000,000 150,000,000 870,000,000 P1
SUB THEME 5 TOTAL 1,077,500,000 1,043,250,000 933,250,000 844,250,000
854,250,000 4,752,500,000
100% additional
400,000,000 600,000,000 1,000,000,000 1,000,000,000 3,300,000,000 P1
282,250,000 400,000,000 162,500,000 0 1,124,750,000 P1 100% additional
in general 15,000,000 20,000,000 20,000,000 5,000,000 5,000,000 65,000,000 P1
100% additional
100% additional
additional
0 0 35,000,000 P1 100% additional
186
10,000,000 15,000,000 0 0 0 25,000,000 P1 100% additional
0 20,000,000 P1 100% additional
167 Review and reconcile existing laws to ensure compatibility
with the land policy 10,000,000 20,000,000 10,000,000 0 0 40,000,000 P1F Funding
for this activity is secured thus this is not
additional
SUB THEME 6 TOTAL 720,000,000 817,250,000 1,063,000,000 1,177,500,000
1,015,000,000 4,792,750,000
5,801,453,665 30,194,195,008
201
12,000,000 6,000,000 3,000,000 1,500,000 1,500,000 24,000,000 P1 Consultancy
costs, workshops
268,750,000 P1
16,567,070 60,448,830 175,323,460 P1 100% additionality
P1
requirement)
203
Implement productivity enhancing interventions (e.g.
public works programmes: river diversion for irrigation,
afforestation, reservoir/dam construction, dykes, roads)
3,500,000,000 3,500,000,000 3,500,000,000 3,500,000,000 3,500,000,000
17,500,000,000 P1F
Employment cost 250,000 beneficiaries @
K125/day for 60 days+administrative cost.
MASAF and other donor funded. Fully funded
204 Enhance non-traditional PWP (e.g. manure making, bush
clearing) 750,000,000 750,000,000 750,000,000 750,000,000 750,000,000
3,750,000,000 P1F
100,000 beneficiaries @ K125/day for 60
days+administrative cost. Mainly urban based.
Donor and GoM funded
SUB THEME 1 TOTAL 4,570,797,697 4,483,968,397 4,480,791,467 4,392,817,070
4,436,698,830 22,365,073,460
SUB THEME 2 Disaster Management
213 Promote integration of disaster management into
sustainable development programming at all levels 21,200,000 11,200,000
3,200,000 3,200,000 3,200,000 42,000,000 P1F
Development of plans for disaster response.
Donor funded, 7-8m MK. Additional. Funds not
usually provided through the GoM budget, until
disaster arrives.
SUB THEME 2 TOTAL 21,200,000 11,200,000 3,200,000 3,200,000 3,200,000 42,000,000
4,439,898,830 22,407,073,460
SUB THEME 1 Health
217 Increase student intake into medical/health training

institutions 1,196,000,000 1,196,000,000 1,196,000,000 1,196,000,000
1,196,000,000 5,980,000,000 P1F swap prog 1.1 action 1 p43
218 Provide ARVs to HIV and AIDS infected health workers 81,900,000 171,600,000
302,250,000 468,000,000 668,850,000 1,692,600,000 P1F $300 pc cost of ARV pa.
Funded from Global
Fund.
221 Improve pharmaceutical and medical supplies and
distribution for timely procurement to reach health facilities 2,581,800,000
2,891,200,000 3,239,600,000 3,627,000,000 4,062,500,000 16,402,100,000 P1F swap
p44 prog 2 output 2.1, 2.2
223 Provide vaccines at clinics/communities 904,234,370 904,234,370 904,234,370
904,234,370 904,234,370 4,521,171,850 P1F
Vaccines- new vaccines for children under 1yr.
$6m pa - cost will decrease over time;
$0.955649 (BCG, TT, measles, OPV) pa. Target
100%. Not factored in population growth, 1.9%
growth rate balances out cost decrease. 05/06
$1m in budget, remainder funded by donors.
224 Provide bed nets at clinics/communities 78,000,000 78,000,000 78,000,000
78,000,000 78,000,000 390,000,000 P1F
Based on a target of 60% of pregnant women
and children under 5 yrs, i.e. 200,000. Cost per
net of $3,
226
Rehabilitate, construct and maintain health structures:
buildings, medical equipment, telecommunication,
electricity and water through the facilities development
program
1,173,900,000 1,300,000,000 1,361,100,000 1,436,500,000 1,436,500,000
6,708,000,000 P1F swap p46, prog 4 sub-progs 4.1, 4.2, 4.3, 4.4,
4.5
227 Improve planning and budgeting at all levels through
systems development at the central and district level 260,000 260,000 260,000
260,000 260,000 1,300,000 P1F swap p51 prog 6 sub-prog 6.2.2 sub-output 1
actions 1, 2
228 Undertake close monitoring of financial flows and usage 0 3,887,000 0
3,887,000 0 7,774,000 P1F swap p51 prog 6 sub-prog 6.2.2 sub-output 1
action 3
SUB THEME 1 TOTAL 6,016,094,370 6,545,181,370 7,081,444,370 7,713,881,370
8,346,344,370 35,702,945,850
231
Policy
232
in Nutrition Policy
233
status
average commercial
rates
234
300,000 300,000 300,000 300,000 300,000 1,500,000 P1 Based on policy
235
nutrition workers
237
their requirements
238
nutrition
and
dissemination
SUB THEME 2 TOTAL 1,831,617 1,736,617 1,567,417 1,512,057 1,454,769 8,102,477
1,189,598,150 1,189,598,150 11,958,899,550 P1

148,232,500 148,232,500 757,900,000 P1
119,042,235 921,186,175 P1
61,620,000 P1
357,266,000 1,551,017,000 P1
1,314,917,500 P1
379,358,200 1,939,789,800 P1
254
990,748,200 1,193,203,700 1,338,498,200 1,512,178,200 1,512,178,200
6,546,806,500 P1
139,965,800 1,077,391,250 P1
256
168,018,500 169,318,500 132,106,000 51,018,500 51,018,500 571,480,000 P1
impacts of HIV/AIDS
4,525,625,000 5,395,000,000 5,395,000,000 21,758,750,000 P1
impacts of HIV/AIDS
based services 1,914,218,800 1,821,138,800 1,843,628,800 1,704,788,800
1,704,788,800 8,988,564,000 P1
SUB THEME 3 TOTAL 10,837,526,635 12,280,629,985 11,842,007,385 11,244,130,885
11,244,026,885 57,448,321,775
Primary
117,000,000 117,000,000 117,000,000 585,000,000 P1
274
development
357,825,000 328,110,714 627,110,714 692,110,714 714,396,429 2,719,553,571 P1
15,759,366 78,796,830 P1
cost 27%
284
35,687,282 36,164,465 36,894,371 37,632,765 38,379,817 184,758,700 P1
Secondary
for
678,600,000 3,241,550,000 P1
education 58,500,000 58,500,000 58,500,000 58,500,000 58,500,000 292,500,000 P1
6,964,286 P1
298
6,500,000 6,500,000 6,500,000 71,500,000 46,428,571 137,428,571 P1 TA $1m in
System (DEMIS) 12,714,000 12,714,000 12,714,000 12,714,000 12,714,000 63,570,000
1,300,000 1,300,000 6,500,000 P1
292 Provide girl-friendly environment, in particular
accommodation in 90 secondary schools 557,142,857 557,142,857 557,142,857
557,142,857 557,142,857 2,785,714,286 P1F
This is assuming constructing 15
accommodation hostels a year at 40 million MK
pa. Donor funded
293 Increase bursaries for the needy secondary students 88,400,000 93,600,000
97,500,000 101,400,000 105,300,000 486,200,000 P1F Expected to be in the budget.
Taken from
Education Sector Plan
Tertiary
funded
12,756,300 13,076,200 13,370,800 62,425,500 P1
P1
SUB THEME 4 TOTAL 3,546,748,812 2,436,702,310 2,501,484,116 2,651,252,410
2,671,678,347 13,807,865,994
SUB THEME 5 Gender
SUB THEME 5 TOTAL 92,820,000 93,145,000 95,095,000 97,695,000 99,320,000
478,075,000
22,362,824,371 107,445,311,096
Roads
327
decked bridges
1,387,880,000 1,489,020,000 1,523,730,000 1,587,170,000 1,625,910,000
7,613,710,000 P1
requirement
5,800,000 5,900,000 26,400,000 P1 100% additional
2,000,000 46,000,000 P1
Other
Shipping
260,000,000 P1 100% additional
13,000,000 P1 100% additional
65,000,000,000 65,000,000,000 325,000,000,000 P1 100% additional
Civil Aviation
500,000 34,500,000 P1 100% additional
10,000,000 10,000,000 5,000,000 5,000,000 40,000,000 P1 100% additional
500,000,000 500,000,000 3,000,000,000 P1
SUB THEME 1 TOTAL 68,191,880,000 67,689,080,000 67,700,396,000 67,819,282,600
67,930,004,260 339,330,642,860
SUB THEME 2 Energy
established
360
7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 37,500,000 P1 Indicator:
349
Rehabilitate two more stations for power distribution and
complete the ones under construction (e.g. Kapichira
power station) and upgrade existing ones (Nkula A and B)
431,300,000 431,300,000 0 0 0 862,600,000 P1F Indicator: Generation capacity.
Donor funded
SUB THEME 2 TOTAL 533,800,000 508,800,000 77,500,000 77,500,000 77,500,000
1,275,100,000
365
3,250,000 16,250,000 21,666,667 16,250,000 7,583,333 65,000,000 P1 100%
additional
366
4,333,333 9,316,667 17,604,167 38,404,167 32,175,000 101,833,333 P1 100%
additional
367
2,166,667 16,250,000 9,100,000 9,100,000 9,100,000 45,716,667 P1 100% additional
Act 21,666,667 13,000,000 34,666,667 P1 100% additional
programs 10,833,333 16,250,000 21,666,667 21,666,667 21,666,667 92,083,333 P1
100% additional
10,833,333 54,166,667 P1 100% additional
108,333,333 P1 100% additional
Urban, Peri-Urban and Market Centres
399,750,000 333,233,333 66,516,667 1,265,766,667 P1 100% additional
1,083,333,333 813,583,333 270,833,333 2,451,583,333 P1 100% additional
1,354,166,667 352,083,333 2,711,583,333 P1 100% additional
systems 130,000,000 270,833,333 452,833,333 396,500,000 227,500,000
1,477,666,667 P1 100% additional
162,500,000 390,000,000 390,000,000 97,500,000 1,126,666,667 P1 100% additional
SUB THEME 3 TOTAL 439,183,333 1,464,233,333 3,219,287,500 3,383,737,500
1,095,791,667 9,602,233,333
Technology
P1
network (GWAN) 208,000,000 208,000,000 208,000,000 208,000,000 208,000,000
1,040,000,000 P1
401
65,000,000 65,000,000 65,000,000 65,000,000 65,000,000 325,000,000 P1
9,650,000 9,650,000 48,250,000 P1
Telecommunications

P1
Broadcasting
13,000,000 13,000,000 65,000,000 P1
26,000,000 26,000,000 130,000,000 P1
SUB THEME 4 TOTAL 322,310,000 296,310,000 296,310,000 296,310,000 296,310,000
1,507,550,000
Development
Technology 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
25,000,000 25,000,000 25,000,000 25,000,000 125,000,000 P1 100% additional
200,000 200,000 200,000 14,600,000 P1 100% additional
15,000,000 15,000,000 10,000,000 70,000,000 P1 100% additional
P1 100% additional
5,000,000 5,000,000 5,000,000 25,000,000 P1 100% additional
additional
SUB THEME 5 TOTAL 1,083,000,000 1,076,000,000 1,045,200,000 1,045,200,000
1,040,200,000 5,289,600,000
70,439,805,927 357,005,126,193
100% additional
443
administration
9,750,000 9,750,000 9,750,000 9,750,000 9,750,000 48,750,000 P1 100% additional
436 Improve financial management systems and skills to
operate them, MoF and AGD 130,000,000 195,000,000 130,000,000 65,000,000
97,500,000 617,500,000 P1F
This item has been budget for and supported by
donors. MoF does not consider this to be
additional
437 Enforce adherence of line ministries and parastatals to
Public and Finance Management Act 650,000 650,000 650,000 650,000 650,000
3,250,000 P1F
This is a small item but important nonetheless.
Implementation will not require significant
additional resources and will be covered under
existing resource provision
SUB THEME 1 TOTAL 141,700,000 206,700,000 141,700,000 76,700,000 109,200,000
676,000,000
444
158,010,924 158,010,924 142,209,832 127,988,848 115,189,964 701,410,491 P1 100%
additional
age persons 2,000,000,000 1,000,000,000 1,000,000,000 500,000,000 500,000,000
SUB THEME 2 TOTAL 2,158,010,924 1,158,010,924 1,142,209,832 627,988,848
615,189,964 5,701,410,491

17,062,500 17,062,500 289,914,040 P1
2010/11
58,500,000 58,500,000 351,000,000 P1
2010/11
SUB THEME 3 TOTAL 259,376,000 146,998,540 83,414,500 75,562,500 75,562,500
640,914,040
49,821,800 49,821,801 266,034,000 P1 100% additional
electronic
database
481
10,720,000 10,720,000 10,720,000 10,720,000 10,720,000 53,600,000 P1 100%
additional
24,000,000 24,000,000 123,000,000 P1
6,000,000 30,000,000 P1 100% additional
construction of
new Blantyre Court
4,074,000 4,074,000 4,074,000 20,370,000 P1
SUB THEME 4 TOTAL 884,540,800 108,901,514 105,500,154 103,254,176 102,842,825
1,305,039,469
902,795,289 8,323,364,000
TOTAL A: ALL THEMES 105,401,700,707 104,981,850,415 105,714,324,914
105,330,415,640 103,946,778,081 525,375,069,757
40,714,324,914 40,330,415,640 38,946,778,081 200,375,069,757
15.1%
SUMMARY 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL
38,946,778,081 200,375,069,757
133,307,529,001 139,306,368,001 657,766,534,003

Real GDP 307,800,000,000 325,652,400,000 344,865,891,001 360,384,856,001
376,602,175,000 1,715,305,322,002
% of GDP 13.1% 12.3% 11.8% 11.2% 10.3% 11.7%
Table 3 all Priorities Additional Malawi Kwacha

Tourism
3
Salim, Nkhata Bay)
31,616,000 65,988,000 88,920,000 0 0 186,524,000 P1
budget. 18m MK
budget. Funds to
1 Development of ecotourism facilities in five priority sites 21,437,000
19,058,000 39,715,000 8,372,000 11,518,000 100,100,000 P2 Based on the estimates
in the Strategic
Development Plan
8 Development of website for destination marketing 130,000 130,000 130,000
130,000 130,000 650,000 P2
5
Tourism and Hotels Board to be financially empowered
and detached from the Ministry to regulate and enforce
tourism regulations and standards
124,000,000 0 0 0 0 124,000,000 P3 Seed money for establishment of board. Rental
for office, equipment, secretariat running costs
6 Conduct sensitisation campaigns on tourism regulations 4,000,000 3,000,000 0 0
0 7,000,000 P3 Based on 2005/06 budget estimates but no
funds allocated
Mining
12
37,500,000 31,250,000 31,250,000 25,000,000 25,000,000 150,000,000 P1 Not funded
this is additional
13 Promotion of Mineral Sector 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000
22,500,000 P2 Ongoing. Some GoM funding (about 5%). 95% of
this is additional
15
Enforce regulatory framework for standards in Mineral
Sector, including occupation healthy and safety and
environment
25,500,000 26,775,000 28,113,750 29,519,438 30,995,409 140,903,597 P2 Ongoing.
Some GoM funding (about 5%). 95% of
this is additional
17 Creation of a Mining, Investment and Development Body
to use as a conduit for public- private partnerships 200,000,000 210,000,000
220,500,000 231,525,000 243,101,250 1,105,126,250 P2 New measure. Needs 100%
additional funding
16
Enhance Geohazard Mitigation through seismology and
disaster preparedness including for landslides and
earthquakes
20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 100,000,000 P3 Not funded
Garments/cotton

markets (AGOA) 5,000,000 10,000,000 10,000,000 15,000,000 15,000,000 55,000,000
P1
18 Establish a Cotton Council in order to promote cotton 68,090,000 68,090,000
68,090,000 68,090,000 68,090,000 340,450,000 P2 GoM Part 2. Figure for the first
year includes
procurement of capital goods
Manufacturing
services 105,600,000 105,600,000 105,600,000 105,600,000 105,600,000 528,000,000
P1
22
Promote and coordinate products/services research,
innovations and development to support production in
Malawi
7,000,000 10,000,000 10,000,000 10,000,000 10,000,000 47,000,000 P2 2
consultants, stakeholder consultations, 3
stakeholders meetings
23 Establish links for improving quality and quantity of raw
materials and processors, especially agricultural sector 4,500,000 4,500,000
5,000,000 5,000,000 5,000,000 24,000,000 P2
24 Identify, source and transfer manufacturing technologies,
machinery and plants to improve production 50,000,000 25,000,000 25,000,000
25,000,000 25,000,000 150,000,000 P2 Pilot plants, consultations, PSD
stakeholder
meetings
26 Establish and operationalise a National Productivity
Centre 10,000,000 70,000,000 20,000,000 10,000,000 10,000,000 120,000,000 P2
Staffing, equipment, vehicles, administrative
expenses, salaries, rentals, operations
29 Facilitate and implement Export Processing Zones (EPZs) 3,000,000 3,000,000
4,000,000 4,000,000 4,000,000 18,000,000 P2
28 Encourage processing in rural areas, sub-contracting and
use of modern technology 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000
125,000,000 P3
Cost of design and implementation. MoLVT to
design policy. Mobilisation of rural communities,
employment policy. Commerce's responsibility to
implement. This is 100% additional requirement
Agriculture
private sector
accommodation etc
GoM
schemes etc 646,529,000 646,529,000 646,529,000 646,529,000 646,529,000

78,080,000 78,080,000 78,080,000 390,400,000 P1
50m MK pa.
1,935,200,000 P1
20,000,000 20,000,000 96,000,000 P1
evaluation
to loans
6,320,000 4,520,000 4,520,000 41,655,095 P1
32 Strengthen agricultural research to improve agricultural
productivity 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000
500,000,000 P2
Research activities are expensive and on going.
Figures based on 2005/06 requirements. To
support food security
37 Revise tobacco taxation policy 3,190,000 1,650,000 0 0 0 4,840,000 P2
38 Strengthen contract farming 5,234,000 2,190,000 1,090,000 8,514,000 P2
39 Intensify out-grower schemes 150,000,000 50,000,000 0 0 0 200,000,000 P2 Some
costs already committed donors for the
Dwangwa Outgrower Sugarcane scheme
41 Research and develop appropriate technologies for use in
agro-processing 20,000,000 40,000,000 10,000,000 10,000,000 10,000,000
90,000,000 P2
43 Promote processing of goods and provision of services 41,600,000 41,600,000
41,600,000 36,600,000 36,600,000 198,000,000 P2 OVOP
45 Increase access to markets or to agro-processing firms 5,921,200 5,921,200
5,921,200 5,921,200 5,921,200 29,606,000 P2 To take care of international and
regional
marketing foras
52 Development and use of water harvesting 315,000,000 315,000,000 0 0 0
630,000,000 P2
Once systems developed during the first two
years can be used for more than five years and
beyond
54 Source pesticides and spray equipment for migratory pest
control 41,000,000 28,000,000 28,000,000 28,000,000 28,000,000 153,000,000 P2
Cost after first year does not include spray
equipment
59 Facilitate access to credit, equipment and technology to
assist in value addition 3,500,000 9,000,000 6,000,000 2,400,000 1,500,000
22,400,000 P2 Identify resources for lending, establish a credit
reference bureau and support the MFI network
46 Develop farmers’ organizations 8,648,400 8,648,400 86,484 86,484 86,484
17,556,252 P3 Development planned to be more vigorous in the
first two years
61 Undertake skills upgrading 10,000,000 5,000,000 5,000,000 4,000,000
24,000,000 P3 Accommodation, consultancy, stationery etc
48 Increase land under irrigation (irrigation perimeter)
Natural Resources

48,875,000 56,206,250 329,481,250 P1
70 Develop accreditation facilities for fish export 65,960,000 45,400,000
27,200,000 31,280,000 35,972,000 205,812,000 P2
Laboratories, detergents, lab equipment. EPAs,
focal point for inland fisheries. Laborities and
testing infrastructure large part of cost
67 Provide fish landing facilities and train communities
trained in modern fish processing 13,940,000 3,400,000 2,200,000 2,530,000
2,909,500 24,979,500 P3
Expanding scale of project. Jetties, beach
access facilities, cold rooms. Additional to donor
project.
69 Carry out capture fisheries programmes 7,450,000 9,450,000 14,600,000
16,790,000 19,308,500 67,598,500 P3 Natural inland water fisheries. Monitoring,
data
analysis and resource management.
Forestry
1,204,300,000 5,167,800,000 P1
78 Identify training needs and develop training programmes 2,000,000 2,000,000
1,000,000 1,000,000 0 6,000,000 P2 Reports
79 Improve human resources capacity in the forestry sector 55,000,000 57,500,000
59,000,000 60,000,000 56,000,000 287,500,000 P2 No of people trained
80 Enforce forestry law 6,050,000 6,300,000 6,410,000 6,420,000 6,550,000
31,730,000 P2 Reports
74 Registration with international standard bodies 4,000,000 3,000,000 2,000,000
1,000,000 1,000,000 11,000,000 P3 Reports
75 Undertake national surveys and documentation of forestry
industry statistics 2,000,000 2,000,000 1,000,000 0 0 5,000,000 P3 Reports
76 Improve forest products marketing and develop standards
and value added in the forestry industry 15,000,000 18,000,000 12,000,000
12,500,000 10,000,000 67,500,000 P3 Reports and standards
73 Introduce appropriate incentives to promote investment in
forest industries 2,000,000 2,000,000 3,000,000 0 0 7,000,000 P3 Investments
funded /GoM
89
30,000,000 30,000,000 150,000,000 P1
82 Recruit and retain environmental lawyers and develop
capacity to enforce standards 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000
15,000,000 P2 Environmental lawyers, appeals tribunal. GoM
84 Development environmental standards 8,000,000 8,000,000 8,000,000 0 0
24,000,000 P2 Environment standards. Donor funded/GoM
85 Strengthen legal framework 30,000,000 26,200,000 22,496,000 22,895,680
20,407,334 121,999,014 P2
87 Coordinate implementation of Clean Development
Mechanism 12,500,000 13,500,000 14,580,000 15,746,400 17,006,112 73,332,512 P2
Cleaner technologies. CDM projects. 8%
increase in inputs assumed pa

pa. 2 radios pa.
100% additional
98
electricity supply)
40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 200,000,000 P1
areas pa
100 Support communities to establish wildlife based
enterprises (e.g. ranching, farming, bee keeping) 5,000,000 5,000,000 5,000,000
5,000,000 5,000,000 25,000,000 P2 100% additional
101 Develop a PAC strategy and guidelines 5,000,000 5,000,000 5,000,000
5,000,000 5,000,000 25,000,000 P2 100% additional
104 Conduct monitoring of key wildlife species 5,000,000 5,000,000 5,000,000
5,000,000 5,000,000 25,000,000 P2 100% additional
105 Develop research plan and guidelines 3,250,000 3,000,000 6,250,000 P2 100%
additional
99 Procure materials and drugs for tsetse control 11,250,000 10,000,000
10,000,000 31,250,000 P3 100% additional
103 Translocate dangerous animals to Protected Areas (Pas) 15,000,000 20,000,000
25,000,000 10,000,000 5,000,000 75,000,000 P3 100% additional
106 Procure high tech research and monitoring equipment 3,000,000 3,000,000
3,000,000 3,000,000 3,000,000 15,000,000 P3 100% additional. Computers,
binoculars
95 Conservation and Wildlife
SUB THEME 1 TOTAL 5,258,169,089 5,152,502,994 3,858,944,578 3,585,057,395
3,837,579,173 21,692,253,228
Sector Led Growth
20,000,000 20,000,000 15,000,000 80,000,000 P1
from donors
108
areas (TEVET)
225,000,000 225,000,000 500,000,000 500,000,000 500,000,000 1,950,000,000 P1
3,000,000 10,000,000 P1

100,000,000 100,000,000 347,000,000 P1
1,000,000 1,000,000 0 20,000,000 P1
themes 15,000,000 25,000,000 25,000,000 15,000,000 5,000,000 85,000,000 P1
114 Enhance coordination amongst micro finance institutions 2,000,000 2,000,000
2,500,000 0 0 6,500,000 P2
115 Increase loanable funds for SMEs 200,000,000 300,000,000 400,000,000
500,000,000 500,000,000 1,900,000,000 P2 Private sector funded
116 Improve infrastructure for SMEs 15,000,000 100,000,000 150,000,000 0 0
265,000,000 P2
109 Update curriculum and equipment for economic needs
(vocational centres) 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000
60,000,000 P3 Secondary schools have funding, but this
addresses the vocational education costs
110 Increase enrolment of general education students in
vocational programme 20,000,000 20,000,000 20,000,000 30,000,000 30,000,000
120,000,000 P3
SUB THEME 2 TOTAL 563,000,000 789,500,000 1,213,000,000 1,181,000,000
1,162,000,000 4,908,500,000
72,000,000 72,000,000 72,000,000 360,000,000 P1
warning system 8,377,000 8,377,000 2,750,000 2,750,000 2,750,000 25,004,000 P1
18,265,000 P1
121 Establish and enforce phyto-sanitary rules and regulations 3,200,000
3,200,000 3,200,000 3,200,000 3,200,000 16,000,000 P2 Ongoing activity
SUB THEME 3 TOTAL 90,697,000 90,697,000 85,070,000 85,070,000 85,070,000
436,604,000
donors and GoM.
running
133
MEPC
90,000,000 90,000,000 70,000,000 70,000,000 70,000,000 390,000,000 P1 Export
125 Harmonise standards for cross border and transit trade
with neighbouring countries 2,000,000 1,500,000 500,000 500,000 500,000
5,000,000 P2
127 Reorient Malawi Export Promotion Council 5,000,000 4,000,000 4,000,000
4,000,000 4,000,000 21,000,000 P2
128 Establish trade finance scheme 50,000,000 100,000,000 100,000,000

150,000,000 200,000,000 600,000,000 P2 Export credit guarantee scheme
129 Upgrade trade related skills of key staff in target
institutions 2,000,000 3,000,000 4,000,000 5,000,000 5,000,000 19,000,000 P2
130 Enhance capacity building for producers and exporters 5,000,000 7,000,000
7,000,000 7,000,000 7,000,000 33,000,000 P2
131 Strengthen analytical capacity for trade policy analysis and
implementation 37,500,000 0 0 0 37,500,000 P2 Project
SUB THEME 4 TOTAL 378,980,000 367,980,000 255,500,000 301,500,000 351,500,000
1,655,460,000
1,000,000 0 0 10,000,000 P1
135
540,000,000 540,000,000 540,000,000 540,000,000 540,000,000 2,700,000,000 P1
10,000,000 10,000,000 75,000,000 P1
private sector
P1
149
building
66,600,000 66,600,000 66,600,000 39,100,000 39,100,000 278,000,000 P1 OVOP
GoM
51,900,000 26,400,000 26,400,000 208,500,000 P1
5,000,000 P1
3,000,000 3,000,000 14,000,000 P1
165
25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 125,000,000 P1
150,000,000 150,000,000 870,000,000 P1
136 Promote the deployment and exploitation of ICTs to
support the activities of the agricultural sector 12,000,000 12,000,000
12,000,000 12,000,000 12,000,000 60,000,000 P2 Coordinated by OPC
of cooperatives in rural areas 6,919,000 6,919,000 0 0 0 13,838,000 P2 2
consultants and stakeholder workshops
138 Strengthen policy environment for SMEs and
Cooperatives 2,000,000 3,000,000 500,000 0 5,500,000 P2 Formulation and
consultative costs
140 Establish National Economic Empowerment Council 20,000,000 45,000,000
45,000,000 25,000,000 25,000,000 160,000,000 P2 Land, staffing, equipment,
furniture, vehicle etc
142
Establish programmes for increasing opportunities to
participate in economic activities including through
creation of a Product Development Fund
100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 500,000,000 P2
Capitalisation should be adequate for an
effective programme
143 Introduce tax incentives for private sector institutions
participating in rural industries 35,000,000 35,000,000 5,000,000 5,000,000
5,000,000 85,000,000 P2
144 Review the possibility of providing grants to match private
sector funding for empowerment related projects 14,000,000 14,000,000 14,000,000
0 0 42,000,000 P2
147 Improve infrastructure for SMEs 100,000,000 100,000,000 100,000,000

100,000,000 100,000,000 500,000,000 P2 SME shed programme
152 Provide technical support from private sector programmes
related to off farm employment 5,000,000 5,600,000 7,000,000 10,000,000
10,000,000 37,600,000 P2 Private sector funding
154 Strengthen understanding of micro-finance 2,000,000 2,000,000 2,000,000
4,000,000 4,000,000 14,000,000 P2
156
Encourage financial institutions to design tiered loan
packages to provide incentives to borrowers for loan
repayment
500,000 500,000 500,000 500,000 500,000 2,500,000 P2
159 Provide training to all people who borrow for business
purposes through the training unit of the NEEC 5,000,000 5,000,000 5,000,000
5,000,000 5,000,000 25,000,000 P2
160 Support finance institutions in designing differentiated
financial products 2,000,000 5,500,000 8,000,000 4,000,000 19,500,000 P2 2
consultants and a workshop
161
Develop and strengthen the micro-finance sector to serve
small scale concerns and as part of the broader financial
system
2,000,000 3,000,000 3,000,000 4,000,000 4,000,000 16,000,000 P2
162 Develop a charter to increase the employment
opportunities 6,000,000 6,000,000 4,000,000 4,000,000 3,000,000 23,000,000 P2
164 Train women in entrepreneurial skills and ability to
manage businesses 20,000,000 30,000,000 3,750,000 50,000,000 103,750,000 P2
148 Establish an SME Apex institution 12,300,000 9,000,000 4,500,000 2,500,000 0
28,300,000 P3
155 Enhance capacity of courts to handle business cases 0 0 P3
163 Enhance institutional framework supporting the
development of women entrepreneurs 12,500,000 15,000,000 12,500,000 5,000,000
45,000,000 P3
Development of Malawi Entrepreneur
Development Institute - subvented.
Strengthening laws - disability law, labour laws,
153 Organise communities to produce outputs or develop local
industry 0
SUB THEME 5 TOTAL 1,402,219,000 1,428,269,000 1,288,750,000 1,136,500,000
1,177,750,000 6,433,488,000
100% additional
400,000,000 600,000,000 1,000,000,000 1,000,000,000 3,300,000,000 P1
282,250,000 400,000,000 162,500,000 0 1,124,750,000 P1 100% additional
in general 15,000,000 20,000,000 20,000,000 5,000,000 5,000,000 65,000,000 P1
100% additional
100% additional
additional
0 0 35,000,000 P1 100% additional
186
10,000,000 15,000,000 0 0 0 25,000,000 P1 100% additional
0 20,000,000 P1 100% additional
168 Develop a carefully structured programme on land

administration and land records 0 50,000,000 0 50,000,000 P2 100% additional
171 Establish viable land markets 15,000,000 20,000,000 0 0 0 35,000,000 P2 100%
additional
173 Provide credit to support off farm livelihoods enhancing
activities 30,000,000 50,000,000 35,000,000 10,000,000 0 125,000,000 P2 100%
additional
177 Review Land Use Legislation 10,000,000 30,000,000 0 0 0 40,000,000 P2 100%
additional
178 Review of the National Physical Development Plan 10,000,000 0 0 0 10,000,000
P2 100% additional
187
Mobilize resources to meet varying housing demands,
particularly rental housing for low-income and vulnerable
groups
7,500,000 27,500,000 20,000,000 20,000,000 0 75,000,000 P2 100% additional
188 Facilitate formulation of special funding schemes for
groups in poverty and the most vulnerable groups 5,000,000 2,000,000 0 0
1,000,000 8,000,000 P2 100% additional
179 Review the Town and Country Planning Act, planning
standards and regulations 45,000,000 30,000,000 0 0 0 75,000,000 P3 100%
additional
180
Sensitise local communities in aspects of land use
planning environment and community land resource
management
8,000,000 7,000,000 5,000,000 6,000,000 6,000,000 32,000,000 P3 100% additional
184 Procurement of modern equipment for surveying, planning
and valuation 50,000,000 20,000,000 0 0 0 70,000,000 P3 100% additional
190 Promote and encourage community participation in
infrastructure provision and maintenance 5,000,000 1,000,000 0 0 0 6,000,000 P3
100% additional
191
Conduct civic education/public awareness on the
importance of housing and available housing programmes
and/or housing delivery systems.
20,000,000 15,000,000 5,000,000 0 0 40,000,000 P3 100% additional
192
Facilitate the formulation of housing and multi-purpose
community development cooperatives, especially for
providing low-income housing
2,000,000 1,000,000 4,000,000 0 0 7,000,000 P3 100% additional
SUB THEME 6 TOTAL 917,500,000 1,050,750,000 1,122,000,000 1,213,500,000
1,022,000,000 5,325,750,000
7,635,899,173 40,452,055,228
201
12,000,000 6,000,000 3,000,000 1,500,000 1,500,000 24,000,000 P1 Consultancy
costs, workshops
268,750,000 P1
16,567,070 60,448,830 175,323,460 P1 100% additionality
P1
requirement)
205 Promote small scale productive activities 250,000,000 250,000,000

250,000,000 250,000,000 250,000,000 1,250,000,000 P2
25,000 beneficiaries @ K20000
each+administrative costs. Microfinance via
NGOs
212 Activities of Child Labour Control Unit 20,000,000 20,000,000 25,000,000
25,000,000 25,000,000 115,000,000 P2 Establishing unit in MoLVT. Equipment
(car), HR
194 Provide nutritious food and home based care kits to those
infected by HIV and AIDS 64,562,500 64,562,500 64,562,500 64,562,500 64,562,500
322,812,500 P3 Food supplies+monitoring visits. Funds from
NGOs and MoH
195 Provide supplementary feeding to malnourished pregnant,
lactating mothers, and under five children 154,015,000 154,015,000 154,015,000
154,015,000 154,015,000 770,075,000 P3 Data from MoH
198 Expand small stock (e.g. goats, chickens etc) and grain
mills programme for the most vulnerable 450,000,000 450,000,000 450,000,000
450,000,000 450,000,000 2,250,000,000 P3
2 goats/10 chickens for 100,000
MASAF, Social Support Programmes.
200 Support the most vulnerable with food and non food items
for their upkeep 32,000,000 32,000,000 32,000,000 32,000,000 32,000,000
160,000,000 P3 Includes support for ECD, Child protection.
197 Promote therapeutic feeding to severely malnourished
under five children 147,812,000 147,812,000 147,812,000 147,812,000 147,812,000
739,060,000 Food supplies and monitoring visits
SUB THEME 1 TOTAL 1,439,187,197 1,352,357,897 1,354,180,967 1,266,206,570
1,310,088,330 6,722,020,960
214 Establish an effective early warning system 205,812,000 205,812,000
20,830,000 20,830,000 20,830,000 474,114,000 P2
Equipment purchase. Donor and GoM funded.
Additional - no request previously made. 519m
MK Dept of Meteorological Services (Ministry of
Transport); 105m MK Ministry of Water
Development.
215 Provide timely emergency relief assistance to affected
people 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 500,000,000
P3
216 Improve mitigation and rehabilitation of areas affected by
disaster 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 40,000,000 P3
SUB THEME 2 TOTAL 313,812,000 313,812,000 128,830,000 128,830,000 128,830,000
1,014,114,000
1,438,918,330 7,736,134,960
SUB THEME 1 Health
229 Modernize the operations of the health delivery system 21,000,000 20,909,091
19,834,711 24,000,000 24,000,000 109,743,802 P2
230 Introduce VIP latrines and other appropriate rural water
sanitation technologies 0 0 0 0 0 0
SUB THEME 1 TOTAL 21,000,000 20,909,091 19,834,711 24,000,000 24,000,000
109,743,802
231
Policy
232
in Nutrition Policy
233
status
average commercial
rates
234
300,000 300,000 300,000 300,000 300,000 1,500,000 P1 Based on policy
235
nutrition workers

237
their requirements
238
nutrition
and
dissemination
239
Increase access and availability of services and
information to prevent consumers from health hazards
140,000 140,000 140,000 140,000 140,000 700,000 P2 Based on estimated cost of
quantity food
inspection, analysis, information dissemination
and clinical trials on new food
240
Review and include nutrition in the curricula of all learning
and training institutions
600,000 50,000 40,000 30,000 100,000 820,000 P2 Based on estimated cost
241
Policy design, dissemination, legislation and enforcement 350,000 20,000 20,000
25,000 100,000 515,000 P2 Based on policy
242 Advocacy and lobbying 250,000 120,000 120,000 120,000 120,000 730,000 P2
Estimated cost of planned activities
243
Initiate research on socio-economic impact of Nutrition 90,000 90,000 90,000
90,000 90,000 450,000 P2 20000/Study/Year
244
Harmonize and improve and nutrition security information
system for evidence based intervention
125,000 20,000 20,000 20,000 20,000 205,000 P3 Estimate based on the cost of a
similar exercise
245 Conduct Nutrition fairs at all levels 50,000 50,000 50,000 50,000 50,000
250,000 P3 Estimated cost of 10/S, 7/C, 6/N Fairs
246 Observe international Nutrition days 30,000 30,000 30,000 30,000 30,000
150,000 P3 Based on estimated cost
SUB THEME 2 TOTAL 3,466,617 2,256,617 2,077,417 2,017,057 2,104,769 11,922,477
1,189,598,150 1,189,598,150 11,958,899,550 P1
148,232,500 148,232,500 757,900,000 P1
119,042,235 921,186,175 P1
61,620,000 P1
357,266,000 1,551,017,000 P1
1,314,917,500 P1
379,358,200 1,939,789,800 P1
254
990,748,200 1,193,203,700 1,338,498,200 1,512,178,200 1,512,178,200
6,546,806,500 P1
139,965,800 1,077,391,250 P1
256
168,018,500 169,318,500 132,106,000 51,018,500 51,018,500 571,480,000 P1
impacts of HIV/AIDS
4,525,625,000 5,395,000,000 5,395,000,000 21,758,750,000 P1
258
Strengthen an integrated ART infrastructure and logistic
systems and a national quality assurance program for
ART
95,048,200 119,384,200 29,918,200 25,888,200 25,888,200 296,127,000 P2
259 Expand provision and access to high quality and
integrated community home-based care (CHBC) services 193,505,000 708,500,000
129,376,000 94,276,000 94,276,000 1,219,933,000 P2
260 Establish mechanisms and Expand delivery of nutritional
support/ therapy to PLHA 949,053,300 1,467,772,800 1,468,097,800 1,457,372,800
1,457,372,800 6,799,669,500 P2
impacts of HIV/AIDS
based services 1,914,218,800 1,821,138,800 1,843,628,800 1,704,788,800
1,704,788,800 8,988,564,000 P1
261 Promote sustainable income generation and advocacy for
micro-finance programs for the infected and affected 377,858,000 454,675,000
253,500,000 245,180,000 245,180,000 1,576,393,000 P2
262 Promote and protect the rights of those infected and
affected 85,930,000 91,780,000 66,430,000 52,780,000 52,780,000 349,700,000 P2
263
Strengthen capacities of communities, districts, PLHA
Associations and FBOs to provide psychosocial support
and counselling
406,608,800 342,076,800 332,846,800 224,965,000 224,965,000 1,531,462,400 P2
265 Promote food security and nutrition among HIV affected
households 8,242,000 8,242,000 6,292,000 6,292,000 6,292,000 35,360,000 P2
Effective and efficient implementation of HIV/AIDS
response across the public and private sectors
266
Develop capacity and partnerships for a shared and
common understanding of mainstreaming in both public
and private sectors including civil society, NGOs, CBOs
and FBOs
927,392,700 145,293,200 89,048,700 80,650,700 80,650,700 1,323,036,000 P2
267 Increase the capacity of District Assemblies to oversee
HIV/AIDS activities in their districts 93,394,600 62,324,600 64,326,600
15,849,600 15,849,600 251,745,000 P2
268 Improve HIV/AIDS data collection, dissemination and
utilization at both national and district levels 288,611,700 705,424,200
396,492,200 137,532,200 137,532,200 1,665,592,500 P2
269 Improve planning, coordination and resource mobilisation
in the spirit of the three ones 541,937,500 433,420,000 340,080,000 333,190,000
333,190,000 1,981,817,500 P2 Y1 and Y2 include costs for integrating HIV/AIDS
in GoM plans and policies
270 Implement strategic approach to research and
development 534,472,900 566,668,700 585,707,200 613,072,200 613,072,200
2,912,993,200 P2
SUB THEME 3 TOTAL 15,339,581,335 17,386,191,485 15,604,122,885 14,531,179,585
14,531,075,585 77,392,150,875
Primary
117,000,000 117,000,000 117,000,000 585,000,000 P1
274
development
357,825,000 328,110,714 627,110,714 692,110,714 714,396,429 2,719,553,571 P1
15,759,366 78,796,830 P1
cost 27%

284
35,687,282 36,164,465 36,894,371 37,632,765 38,379,817 184,758,700 P1
271 Expand and improve existing infrastructure and maximize
its use 845,000,000 845,000,000 845,000,000 845,000,000 845,000,000
4,225,000,000 P2
275 Provide adequate supply of teacher learning materials and
a child friendly environment 436,888,179 233,423,113 238,091,575 242,853,407
247,710,475 1,398,966,748 P2 $3.5 m 10 Y
278 Review policies related to girls 1,392,857 1,392,857 1,392,857 1,392,857
1,392,857 6,964,286 P2
279 Provide block grants to schools to address equity issues 73,567,000
85,174,143 73,567,000 73,567,000 73,567,000 379,442,143 P2 200 000$ pa. $400 per
school for 5159 primary
schools
280 Review policies related to SN Education 1,392,857 1,392,857 1,392,857
1,392,857 1,392,857 6,964,286 P2
282 Provide direct assistance to schools to address equity
issues (relevant textbooks, brail, etc.) 14,760,000 14,760,000 14,760,000
14,760,000 14,760,000 73,800,000 P2
15 visually impaired schools (50,000MK per
month each, 9m MK total); 4 hearing impaired
schools (120,000MK per month each, a total of
5.76m MK) Total for both schools 14.76m MK
pa. A one-off grant of $600 per primary school
per year.
273 Undertake social awareness campaigns and whole school
development 24,375,000 24,375,000 24,375,000 24,375,000 24,375,000 121,875,000
P3 $250/schoolx1500 primary schools whole
country
277 Mobilize community participation in primary school
management 33,533,500 16,766,750 16,766,750 16,766,750 16,766,750 100,600,500 P3
283 Design and standardized sign language for the deaf and
dumb 6,500,000 0 0 0 0 6,500,000 P3 One off grant $50,000
286 Equip school planners with appropriate knowledge and
skills in micro-planning, monitoring and data management 10,011,105 10,011,105
10,011,105 2,956,005 2,956,005 35,945,325 P3
$100 pa for officials of the MoE for 3 years. 3867
officials involved in decentralization. information
on the decentralization process 5200 schools,
$30 per school pa. PE 83%; training 17%
Secondary
for
678,600,000 3,241,550,000 P1
education 58,500,000 58,500,000 58,500,000 58,500,000 58,500,000 292,500,000 P1

6,964,286 P1
298
6,500,000 6,500,000 6,500,000 71,500,000 46,428,571 137,428,571 P1 TA $1m in
System (DEMIS) 12,714,000 12,714,000 12,714,000 12,714,000 12,714,000 63,570,000
1,300,000 1,300,000 6,500,000 P1
294 Provide female secondary school teachers as models -
recruitment, deployment and training 289,286 300,000 310,714 321,429 332,143
1,553,571 P2
Target 1:40 female teacher: female pupil ratio. In
2005 ratio of 1:126. Need additional 1,337
teachers pa. Per teacher 150,000 MK pa.
Increase this by 10 teachers pa to take into
account pupil growth rate. 270 teachers in yr 1.
Training only as 5yrs to fully train teachers
295 Improve and increase special needs education facilities in
existing colleges 32,500,000 32,500,000 32,500,000 32,500,000 32,500,000
162,500,000 P2 $100 per student, 2500 students
301 Increase the procurement and distribution of teaching and
learning materials 150,000,000 19,937,161 20,075,904 20,217,422 20,361,770
230,592,257 P2 $41.5 per student pa 1 book for 2 students 1
book lasts 6 years
303
Improve education planning and equip planners with
knowledge and skills in planning, monitoring and data
management, including monitoring the delivery of supplies
in the schools
127,140,000 0 0 0 0 127,140,000 P2 1 time grant $1000 to the school dev fund. TA
cost
288 Introduce double shift in urban school 6,500,000 6,500,000 6,500,000
6,500,000 6,500,000 32,500,000 P3 10 double schools x$5000
289 Increase access to secondary distance education 32,500,000 32,500,000
32,500,000 32,500,000 32,500,000 162,500,000 P3 10000 students $50 pa per school
297 Provide block grants to schools relevant to special needs 27,300,000
27,300,000 27,300,000 27,300,000 27,300,000 136,500,000 P3 Provide 700 secondary
with a block grant of
$600 per year per school
299 Provide trained guidance counsellors to all secondary
schools 19,071,000 19,071,000 19,071,000 19,071,000 19,071,000 95,355,000 P3
$150 p.school per year, 978 schools
300 Train school managers in planning, monitoring and
supervision 8,125,000 8,125,000 8,125,000 8,125,000 8,125,000 40,625,000 P3 $250
per cluster 250 clust pa
Tertiary
funded
12,756,300 13,076,200 13,370,800 62,425,500 P1
P1
306 Recruit and train more academic staff (50% at current
levels, 70% at Master’s level, 30% at PhD level) 68,410,000 73,570,000
78,730,000 83,630,000 89,050,000 393,390,000 P2
Priority to train but depending on the funds from
GoM would send determine how many could be
trained. No funding obtained before
310 Promote local production of teaching and learning
materials 48,812,000 22,204,000 36,190,000 7,700,000 7,700,000 122,606,000 P2
311 Expand provision of internet services, broad band internet
access established campus wide 590,940 4,768,400 6,378,400 3,806,400 6,518,400
22,062,540 P2
312 Expand teacher training education programs for primary

and secondary education 369,920 4,862,180 6,420,620 8,503,300 11,303,500
31,459,520 P2 To go in line with 246 and 246a. TTC under remit
of University
313 Create an enabling environment to accommodate female
students and people with disabilities 100,000,000 100,000,000 100,000,000
100,000,000 100,000,000 500,000,000 P2
319 Decentralize decision making processes 812,000 672,000 588,000 420,000
420,000 2,912,000 P2
321
Establish planning units and equip planners with
appropriate knowledge and skills in planning, monitoring
and data management
70,000 3,640,000 3,710,000 P2
308 Develop new, parallel programmes, distance/virtual
learning, and short courses 100,000,000 39,200,000 39,200,000 39,200,000
39,200,000 256,800,000 P3
316 Provide relevant skills to academic staff through regular
training 10,303,000 6,243,000 3,380,000 1,400,000 21,326,000 P3
317 Conduct regular curriculum reviews to match national
needs and modularise courses 0 7,000,000 3,703,000 8,230,000 2,010,000
20,943,000 P3
318 Provide labs with adequate modern equipment 0 0 0 0 0 0 Included in
rehabilitation and expansion of
physical infrastructure
SUB THEME 4 TOTAL 5,071,116,599 3,430,708,019 3,496,034,041 3,617,177,979
3,641,448,247 19,256,484,884
SUB THEME 5 Gender
324 Undertake affirmative action to increase women decision
makers in high levels of the public and private sectors 16,250,000 7,800,000
8,450,000 10,400,000 13,000,000 55,900,000 P2 100 % additionality requirement
325 Include gender equality provisions in the Laws of Malawi 11,700,000
SUB THEME 5 TOTAL 120,770,000 112,645,000 103,545,000 108,095,000 112,320,000
557,375,000
18,310,948,601 97,327,677,038
Roads
327
decked bridges
1,387,880,000 1,489,020,000 1,523,730,000 1,587,170,000 1,625,910,000
7,613,710,000 P1
requirement
5,800,000 5,900,000 26,400,000 P1 100% additional
2,000,000 46,000,000 P1
Other
329 Modernisation and maintenance of Malawi Traffic
Information System (MALTIS) 50,000,000 30,000,000 20,000,000 30,000,000
30,000,000 160,000,000 P2 100% additional
331 Harmonize country’s highway code, road signs, signals
and axle-load regulations within the region 2,000,000 2,000,000 2,000,000
2,000,000 2,000,000 10,000,000 P2 Needs to be determined at international
forums.
100% additional requirement
332 Involve private sector in the monitoring and operations of
road transport services 3,200,000 3,800,000 3,200,000 3,800,000 4,000,000
18,000,000 P2 100% additional
Shipping
260,000,000 P1 100% additional
13,000,000 P1 100% additional
65,000,000,000 65,000,000,000 325,000,000,000 P1 100% additional
335 Review concession agreements for inland shipping 0 5,200,000 0 0 0 5,200,000
P2 100% additional
336 Develop, rehabilitate and maintenance of port facilities 195,000,000
390,000,000 455,000,000 390,000,000 227,500,000 1,657,500,000 P2 100% additional
337 Strengthen the marine search and rescue 0 26,000,000 26,000,000 13,000,000 0
65,000,000 P2 100% additional
340 Resuscitate the National Shippers Council and maintain
selective membership in international organisations 0 130,000,000 65,000,000 0
195,000,000 P2 100% additional
338 Establish international shipping line and negotiate with
Mozambique on ports 0 0 0 0 0 0 P3 100% additional
Civil Aviation
500,000 34,500,000 P1 100% additional
10,000,000 10,000,000 5,000,000 5,000,000 40,000,000 P1 100% additional
500,000,000 500,000,000 3,000,000,000 P1
343 Establish where feasible autonomous airport or Civil
Aviation authorities 260,000,000 130,000,000 130,000,000 0 0 520,000,000 P2 100%
additional
346 Strengthen safety and security measures at all airports 50,000,000
10,000,000 10,000,000 10,000,000 10,000,000 90,000,000 P2 100% additional
347 Strengthen safety oversight provision in the aviation sector 3,000,000
2,000,000 1,000,000 500,000 500,000 7,000,000 P2 100% additional
Railways
348 Review the railways act 0 1,000,000 1,000,000 0 0 2,000,000 P2 100%
additional
SUB THEME 1 TOTAL 68,755,080,000 68,289,080,000 68,478,596,000 68,333,582,600
68,204,004,260 342,060,342,860
SUB THEME 2 Energy
established
360
7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 37,500,000 P1 Indicator:
351 Rehabilitate and expand the transmission and distribution 30,000,000
30,000,000 30,000,000 0 0 90,000,000 P2 Indicator: Level of outage
354
Prepare a plan and delineate implementation
responsibilities for the reduction of siltation in reservoirs
and protect catchment area to lake Shire
20,000,000 20,000,000 40,000,000 P2 Indicator: Level of outage
355 Explore alternative energy sources (gas, coal, solar, etc.) 70,000,000
29,375,000 29,375,000 29,375,000 29,375,000 187,500,000 P2 Indictor:
Availability of alternative sources
362
Accelerate the rural electrification programme (promote
grid and off-grid rural electrification by public and private
providers)
125,000,000 125,000,000 125,000,000 125,000,000 125,000,000 625,000,000 P2
Indicator: No. of centres electrified
352 Protect the catchment area along the lake and Shire river 50,000,000
30,000,000 30,000,000 20,000,000 20,000,000 150,000,000 P3 Indicator: Level of
outage
353
Reduce the cost of connection by using affordable
connection and metering methods (e.g. use of pre-wired
boards and pre-paid meters)
100,000,000 68,750,000 68,750,000 68,750,000 68,750,000 375,000,000 P3
Indicator: Cost of connection
356 Implement pumped storage power plant at Livingstonia 0 0 0 0 120,000,000
120,000,000 P3 Indicator: Generation capacity
359
Improved management of ESCOM (including reform
electricity tariff structure) and improve the financial and
operational performance of ESCOM
36,300,000 36,300,000 0 0 0 72,600,000 P3 Indicator: Operational Efficiency
361 Rural communities use alternative energy supplies for
power in under served areas 0 0 0 0 0 0 Fully funded
SUB THEME 2 TOTAL 533,800,000 416,925,000 360,625,000 320,625,000 440,625,000
2,072,600,000
365
3,250,000 16,250,000 21,666,667 16,250,000 7,583,333 65,000,000 P1 100%
additional
366
4,333,333 9,316,667 17,604,167 38,404,167 32,175,000 101,833,333 P1 100%
additional
367
2,166,667 16,250,000 9,100,000 9,100,000 9,100,000 45,716,667 P1 100% additional
Act 21,666,667 13,000,000 34,666,667 P1 100% additional
programs 10,833,333 16,250,000 21,666,667 21,666,667 21,666,667 92,083,333 P1
100% additional
10,833,333 54,166,667 P1 100% additional
368 Develop Management Information System (MIS) for the
water and sanitation 43,333,333 65,000,000 45,500,000 10,833,333 10,833,333
175,500,000 P2 100% additional
369 Recognize and implement obligations to international
agreements 2,166,667 3,250,000 4,333,333 4,333,333 4,333,333 18,416,667 P3 100%
additional
108,333,333 P1 100% additional
375 Establish database on water quality 3,250,000 5,416,667 5,416,667 2,166,667
2,166,667 18,416,667 P2 100% additional
376
Improve skills, technologies, techniques in water quality
monitoring and pollution control (catchment rehabilitation,
determining water quality)
2,166,667 2,166,667 3,250,000 3,250,000 2,166,667 13,000,000 P2 100% additional
378 Develop and disseminate guidelines and standards on
water quality and pollution control 10,833,333 10,833,333 10,833,333 10,833,333
10,833,333 54,166,667 P2 100% additional
377 Strengthen institutional arrangements for environmental
management 3,250,000 2,166,667 2,166,667 2,166,667 2,166,667 11,916,667 P3 100%
additional
379 Provide TA to local government and stakeholders on
2,166,667 14,083,333 P3 100% additional
Urban, Peri-Urban and Market Centres 0 0 0 0 0 0

399,750,000 333,233,333 66,516,667 1,265,766,667 P1 100% additional
1,083,333,333 813,583,333 270,833,333 2,451,583,333 P1 100% additional
1,354,166,667 352,083,333 2,711,583,333 P1 100% additional
385 Promote management arrangements in urban areas –
provide incentives for small scale providers 2,708,333 3,250,000 4,333,333
3,250,000 2,708,333 16,250,000 P2 100% additional
384 Establish contingency water supply reserves and
sanitation backup 16,250,000 21,666,667 27,083,333 32,500,000 32,500,000
130,000,000 P3 100% additional
systems 130,000,000 270,833,333 452,833,333 396,500,000 227,500,000
1,477,666,667 P1 100% additional
162,500,000 390,000,000 390,000,000 97,500,000 1,126,666,667 P1 100% additional
386 Ensure smooth transfer of devolved functions of rural
water supply and sanitation services 1,083,333 2,166,667 3,791,667 5,416,667
1,083,333 13,541,667 P3 100% additional
SUB THEME 3 TOTAL 526,933,333 1,583,400,000 3,329,245,833 3,461,195,833
1,166,750,000 10,067,525,000
Technology
P1
network (GWAN) 208,000,000 208,000,000 208,000,000 208,000,000 208,000,000
1,040,000,000 P1
401
65,000,000 65,000,000 65,000,000 65,000,000 65,000,000 325,000,000 P1
9,650,000 9,650,000 48,250,000 P1
389 Equip the Department of Meteorological Services with
modern weather monitoring and forecasting equipment 13,000,000 1,181,818
1,181,818 1,181,818 1,181,818 17,727,273 P2
390 Equip DAs with ICT services for collection and
dissemination of environmental, disaster warning info 13,000,000 13,000,000
13,000,000 13,000,000 13,000,000 65,000,000 P2
393 Establish communication link between DA and the
Department of Poverty and Disaster Management 196,560,000 79,418,182 72,198,347
65,634,861 59,668,055 473,479,445 P2
398 Promote development of a competitive value-added
services sector through ICT 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000
39,000,000 P2
399
Support the development of an innovative local industry
for the manufacture, assembling, repair and maintenance
of ICT products for domestic and export markets
2,600,000 2,600,000 2,600,000 2,600,000 2,600,000 13,000,000 P2
400 Achieve universal basic ICT literacy and improve the level
of ICT literacy in the country 39,000,000 39,000,000 39,000,000 39,000,000
39,000,000 195,000,000 P2
402
Promote active participation of all Malawians including
women, youth and persons with disabilities in developing
the information society
13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 65,000,000 P2
391 Establish a wide area network for all organizations
involved in disaster management 5,000,000 5,000,000 5,000,000 5,000,000
5,000,000 25,000,000 P3
392 Provide radios to communities to be used for transmitting
early warning messages 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
10,000,000 P3
396
Encourage collaboration between local and international
educational institutions to facilitate educational exchange
and the promotion of ICT education and training
26,000,000 26,000,000 26,000,000 26,000,000 26,000,000 130,000,000 P3
Telecommunications
P1
404 Continue liberalization of telecommunications sector 6,500,000 6,500,000
6,500,000 6,500,000 6,500,000 32,500,000 P2
406 Provision of model telecentres 26,000,000 26,000,000 26,000,000 26,000,000
26,000,000 130,000,000 P2
409 Facilitate research on issues of self regulation 1,200,000 1,200,000
1,200,000 1,200,000 1,200,000 6,000,000 P2
Broadcasting
13,000,000 13,000,000 65,000,000 P1
26,000,000 26,000,000 130,000,000 P1
412 Human capacity building through training 10,000,000 10,000,000 10,000,000
10,000,000 10,000,000 50,000,000 P2
413 Promotion of private sector participation in broadcasting 1,300,000
1,300,000 1,300,000 1,300,000 1,300,000 6,500,000 P3
414 Rehabilitate and computerise the existing TV and radio
stations 26,000,000 26,000,000 26,000,000 26,000,000 26,000,000 130,000,000 P3
SUB THEME 4 TOTAL 673,970,000 519,010,000 511,790,165 505,226,679 499,259,874
2,709,256,718
Development
Technology 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
25,000,000 25,000,000 25,000,000 25,000,000 125,000,000 P1 100% additional
200,000 200,000 200,000 14,600,000 P1 100% additional
15,000,000 15,000,000 10,000,000 70,000,000 P1 100% additional
P1 100% additional
5,000,000 5,000,000 5,000,000 25,000,000 P1 100% additional
additional
420 Design and implement STI capacity building programs to
produce S&T expertise 15,000,000 15,000,000 15,000,000 2,000,000 2,000,000
49,000,000 P2 100% additional
421 Promote recruitment and retention of qualified S&T
experts 15,000,000 10,000,000 5,000,000 0 0 30,000,000 P2 100% additional
424 Promote innovative schemes and culture 5,000,000 5,000,000 5,000,000
5,000,000 0 20,000,000 P2 100% additional
425 Identify and transfer competitive technologies 10,000,000 10,000,000

10,000,000 0 0 30,000,000 P2 100% additional
426 Establish financing mechanism that supports
commercialisation of technologies 1,000,000 0 0 0 0 1,000,000 P2 100% additional
428 Promote utilization and development of beneficial
indigenous technology 5,000,000 10,000,000 10,000,000 5,000,000 5,000,000
35,000,000 P2 100% additional
430 Mainstreaming of S&T in Government and private sector
operations 3,000,000 2,500,000 2,500,000 2,000,000 0 10,000,000 P2 100%
additional
433 Promote gender equity in STI activities 5,000,000 0 0 0 0 5,000,000 P2 100%
additional
434 Strengthen technology information services 35,000,000 35,000,000 0 0 0
70,000,000 P2 100% additional
416
Establish the National Science and Technology
Commission to coordinate technology research,
development, dissemination, evaluation and utilization
0 10,000,000 0 0 0 10,000,000 P3 100% additional
431 Establish and update a data bank on STI 5,000,000 0 0 0 0 5,000,000 P3 100%
additional
SUB THEME 5 TOTAL 1,182,000,000 1,173,500,000 1,092,700,000 1,059,200,000
1,047,200,000 5,554,600,000
71,357,839,134 362,464,324,578
100% additional
443
administration
9,750,000 9,750,000 9,750,000 9,750,000 9,750,000 48,750,000 P1 100% additional
SUB THEME 1 TOTAL 11,050,000 11,050,000 11,050,000 11,050,000 11,050,000
55,250,000
444
158,010,924 158,010,924 142,209,832 127,988,848 115,189,964 701,410,491 P1 100%
additional
age persons 2,000,000,000 1,000,000,000 1,000,000,000 500,000,000 500,000,000
445 Implement pay reforms, address recruitment and retention
problems, non-salary incentives 16,133,358 16,133,358 14,520,022 13,068,020
11,761,218 71,615,976 P2
446
Control size and cost of public sector and focuses them
on its priority areas, including donor funding for the public
sector
10,000,000 10,000,000 11,000,000 12,100,000 13,310,000 56,410,000 P2
450
Develop and implement national anti-corruption strategy
addressing root causes of corruption and involving public
and private sectors
15,000,000 15,750,000 16,537,500 17,364,375 18,232,594 82,884,469 P2 100%
additional
447 Enforce human resource policies and systems 650,000 650,000 650,000 650,000
650,000 3,250,000 P3
448
Implement the monitoring and evaluation roadmap
(includes coordination of donors, national statistical plan,
etc.)
3,768,975 3,768,975 4,145,873 4,560,460 5,016,506 21,260,789 P3
449 Enforce greater clarity on separation of roles between
Ministers and PSs
451 Strengthen the media capacity through training and
access to and distribution of public inform Min of Information
452 Establish community information centres Min of Information
453 Promote professionalism of media that delivers politically
impartial news coverage Min of Information
454 Enact access to information legislation to allow media
access to public information Min of Information
455 Enact public service broadcast legislation Min of Information

456 Select legislators with relevant skills and knowledge into
committees National Assembly
457 Provide adequate financial resources for functioning of the
459 Provide equal access to public media facilities Min of Information
SUB THEME 2 TOTAL 2,203,563,257 1,204,313,257 1,189,063,227 675,731,703
664,160,281 5,936,831,725
17,062,500 17,062,500 289,914,040 P1
2010/11
58,500,000 58,500,000 351,000,000 P1
2010/11
462 Build institutional capacity at the districts. 32,760,000 143,039,000
23,400,000 31,200,000 31,200,000 261,599,000 P2
2010/11
463
Strengthen operational links between decentralization
policy and national policy frameworks and the role in
policy making
464 Train communities for active participation in development
activities at the district. MOL
465 Define clear roles of all groups of stakeholders at the
district.
SUB THEME 3 TOTAL 292,136,000 290,037,540 106,814,500 106,762,500 106,762,500
902,513,040
49,821,800 49,821,801 266,034,000 P1 100% additional
electronic
database
481
10,720,000 10,720,000 10,720,000 10,720,000 10,720,000 53,600,000 P1 100%
additional
24,000,000 24,000,000 123,000,000 P1
6,000,000 30,000,000 P1 100% additional
construction of
new Blantyre Court
4,074,000 4,074,000 4,074,000 20,370,000 P1
467 Acknowledge customary laws and practices that are not in

conflict with principles of human rights and the constitution 4,074,000
4,074,000 4,074,000 4,070,113 4,073,200 20,365,313 P2
468 Review and simplify legal language to ensure a
comprehensible justice system 6,080,000 3,619,048 3,619,048 3,619,048 3,619,048
20,556,190 P2
474 Increase number of court centres close to police stations
and main trading centres 88,200,000 51,857,143 51,349,206 51,046,863 50,758,917
293,212,130 P2
100% additional. Each district and rural court
centre estimated at MK30 million. Estimate
based on 6 new courts pa. Two court buildings,
staff quarters and furnishing
479 Design a programme for reviving traditional courts
including an appropriate training element 30,000,000 28,571,429 18,140,590
17,276,752 16,454,049 110,442,820 P2
472 Appoint judges based on merit 0 0 0 0 0 0 P3
480 Review forms of alternative dispute resolution and identify
the most appropriate forms 10,000,000 0 0 12,957,564 0 22,957,564 P3
466
Undertake periodic review and reform of laws and
procedures in light of constitutional provisions and
applicable international law
469 Strengthen and streamline the legislative drafting process
470 Enact and implement legislation to ensure duty bearers
enforce their functions and powers professionally
473 Continue the Civil Service Reform Programme to retain
legal professionals in the civil service
475 Review primary and informal justice initiatives
476
Design policies and mechanisms for consultation and
cooperation between formal and informal justice sector
players and to improve enhanced accountability of primary
justice agencies to the public
478 Provide primary justice and dispute resolution training for
traditional leaders
483 Design inter-agency approaches to prevention of crime
484 Recruit and train more police to reduce high police-
population ratio
485 Recruit and train police personnel – both in traditional
training and specialized areas including forensic support
486
Develop partnerships between the police and the local
communities and local accountability of the police to the
community, including civic education
487 Provide safe, secure and appropriately designed building
stock
489 Encourage community ownership of installations and
community participation in maintenance
490 Modify training programs to direct toward rehabilitation of
prisoners
492 Develop linkages with other programs for ex- convicts to
be part of the productive sector
493
Control proliferation of firearms (with NGOs to set up
national focal point to deal with issues of illicit trafficking
and firearms)
494 Conduct drug control programs (awareness raising
through faith based organizations)
495 Amend the Immigration Act
496 Introduce national registration and identification system
497 Establish joint programs with companies and communities
to tackle issues of anti-vandalism
498 Integration of police protection into industrial site plans
499 Educate Malawian establishments on the benefits for risk
management for protection of assets
500 Develop Private Security Policy and Act that provides
standards for inspection of private security firms
501 Generate funding support from Government and
development partners
502 Develop a harmonized approach to budget formulation,
presentation, allocation, distribution and accountability
503 Allocate resources between sector institutions effectively
to achieve the sector mission
504 Review, and where appropriate reform, business and
commercial-related laws
507 Design and implement a strategy to address the
administration and distribution of deceased estates
SUB THEME 4 TOTAL 1,022,894,800 197,023,133 182,682,997 192,224,516 177,748,040
1,772,573,486
959,720,821 8,667,168,251
101,845,732,418 99,703,326,059 516,647,360,055
38,794,457,321 36,845,732,418 34,703,326,059 191,647,360,055
21.1%
SUMMARY 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL
34,703,326,059 191,647,360,055
133,307,529,001 139,306,368,001 657,766,534,003
Real GDP 307,800,000,000 325,652,400,000 344,865,891,001 360,384,856,001
376,602,175,000 1,715,305,322,002
% of GDP 13.4% 12.3% 11.2% 10.2% 9.2% 11.2%
Table 4 all Activities Malawi Kwacha

Tourism
1 Development of ecotourism facilities in five priority sites 21,437,000
19,058,000 39,715,000 8,372,000 11,518,000 100,100,000 P2 Based on the estimates
in the Strategic
Development Plan
3
Upgrade to bitumen standard access roads leading to major
tourism areas and establishments (e.g. Mangochi, Salim,
Nkhata Bay)
31,616,000 65,988,000 88,920,000 0 0 186,524,000 P1
4 In line with current tourism regulations, inspect and classify
accommodation units and restaurants into grades 24,500,000 24,500,000 24,500,000
24,500,000 24,500,000 122,500,000 P1 Figure as requested in 2005/06 budget. 18m
MK
5
Tourism and Hotels Board to be financially empowered and
detached from the Ministry to regulate and enforce tourism
regulations and standards
124,000,000 0 0 0 0 124,000,000 P3 Seed money for establishment of board. Rental
for office, equipment, secretariat running costs
6 Conduct sensitisation campaigns on tourism regulations 4,000,000 3,000,000 0 0
0 7,000,000 P3 Based on 2005/06 budget estimates but no funds
allocated
budget. Funds to
8 Development of website for destination marketing 130,000 130,000 130,000
130,000 130,000 650,000 P2
Mining
9 Update geological and mineral data acquisition (remapping
the geology of Malawi) 50,000,000 25,000,000 25,000,000 25,000,000 25,000,000
150,000,000 P1F Ongoing. Some GoM funding (about 5%). 10% of
this is additional
12
37,500,000 31,250,000 31,250,000 25,000,000 25,000,000 150,000,000 P1 Not funded
13 Promotion of Mineral Sector 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000
22,500,000 P2 Ongoing. Some GoM funding (about 5%). 95% of
this is additional
this is additional
15
Enforce regulatory framework for standards in Mineral
Sector, including occupation healthy and safety and
environment
25,500,000 26,775,000 28,113,750 29,519,438 30,995,409 140,903,597 P2 Ongoing.
Some GoM funding (about 5%). 95% of
this is additional
16
Enhance Geohazard Mitigation through seismology and
disaster preparedness including for landslides and
earthquakes
20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 100,000,000 P3 Not funded
17 Creation of a Mining, Investment and Development Body to
use as a conduit for public- private partnerships 200,000,000 210,000,000
220,500,000 231,525,000 243,101,250 1,105,126,250 P2 New measure. Needs 100%
additional funding
Garments/cotton
18 Establish a Cotton Council in order to promote cotton 68,090,000 68,090,000
68,090,000 68,090,000 68,090,000 340,450,000 P2 GoM Part 2. Figure for the first
year includes
procurement of capital goods

20 Increase market access for apparel in international markets
(AGOA) 5,000,000 10,000,000 10,000,000 15,000,000 15,000,000 55,000,000 P1
Manufacturing
22
Promote and coordinate products/services research,
innovations and development to support production in
Malawi
7,000,000 10,000,000 10,000,000 10,000,000 10,000,000 47,000,000 P2 2
consultants, stakeholder consultations, 3
stakeholders meetings
23 Establish links for improving quality and quantity of raw
materials and processors, especially agricultural sector 4,500,000 4,500,000
5,000,000 5,000,000 5,000,000 24,000,000 P2
24 Identify, source and transfer manufacturing technologies,
machinery and plants to improve production 50,000,000 25,000,000 25,000,000
25,000,000 25,000,000 150,000,000 P2 Pilot plants, consultations, PSD
stakeholder
meetings
services 105,600,000 105,600,000 105,600,000 105,600,000 105,600,000 528,000,000
P1
(creation database, capacity building), child labour
control, human trafficking, HIV/AIDS control.
Some additionality required from introduction of
new structures in ministry - 50 % represents
additionality (approx. $1 m). Based on new
structures coming out of functional review in
ministries
26 Establish and operationalise a National Productivity Centre 10,000,000
70,000,000 20,000,000 10,000,000 10,000,000 120,000,000 P2 Staffing, equipment,
vehicles, administrative
expenses, salaries, rentals, operations
28 Encourage processing in rural areas, sub-contracting and
use of modern technology 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000
125,000,000 P3
Cost of design and implementation. MoLVT to
design policy. Mobilisation of rural communities,
employment policy. Commerce's responsibility to
implement. This is 100% additional requirement
29 Facilitate and implement Export Processing Zones (EPZs) 3,000,000 3,000,000
4,000,000 4,000,000 4,000,000 18,000,000 P2
30 Promote production of goods and services (OVOP) 4,500,000 4,500,000 4,500,000
3,000,000 3,000,000 19,500,000 P1F Project funded. Not additional
Agriculture
private sector
32 Strengthen agricultural research to improve agricultural
productivity 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000
500,000,000 P2
Research activities are expensive and on going.
Figures based on 2005/06 requirements. To
support food security
34 Shift to clonal tea varieties and promote market oriented
processing of tea 150,000,000 100,000,000 80,000,000 50,000,000 20,000,000
400,000,000 P2F
This is a cost to the private sector. Resources
already committed by the Commonwealth
Development Corporation
35 Factory refurbishment, replanting and irrigation of estates to
handle peak production 75,000,000 25,000,000 0 0 0 100,000,000 P2F This is a
cost to the private sector. Donor funds
already committed
36 Rationalize fees/levies in tobacco for higher farmer incomes 4,090,100
865,000 0 0 0 4,955,100 P2F Donors already expressed interest to finance
these policy revisions
37 Revise tobacco taxation policy 3,190,000 1,650,000 0 0 0 4,840,000 P2
38 Strengthen contract farming 5,234,000 2,190,000 1,090,000 8,514,000 P2
39 Intensify out-grower schemes 150,000,000 50,000,000 0 0 0 200,000,000 P2 Some

costs already committed donors for the
Dwangwa Outgrower Sugarcane scheme
40 Facilitate the provision of business support services to agroprocessors in
Malawi 15,000,000 15,000,000 15,000,000 15,000,000 10,000,000 70,000,000 P1
Equipment, training of artisans, consultancy,
accommodation etc
41 Research and develop appropriate technologies for use in
agro-processing 20,000,000 40,000,000 10,000,000 10,000,000 10,000,000
90,000,000 P2
GoM
43 Promote processing of goods and provision of services 41,600,000 41,600,000
41,600,000 36,600,000 36,600,000 198,000,000 P2 OVOP
44 Increase knowledge of and skills for agribusiness for
farmers and cooperatives 2,075,620 2,075,620 2,075,620 2,075,620 2,075,620
10,378,100 P2F This is an on going activity
45 Increase access to markets or to agro-processing firms 5,921,200 5,921,200
5,921,200 5,921,200 5,921,200 29,606,000 P2 To take care of international and
regional
marketing foras
46 Develop farmers’ organizations 8,648,400 8,648,400 86,484 86,484 86,484
17,556,252 P3 Development planned to be more vigorous in the
first two years
47 Provide market knowledge to farmers through extension
services 5,189,050 5,189,050 5,189,050 5,189,050 5,189,050 25,945,250 P2F
Ongoing training initiatives
48 Increase land under irrigation (irrigation perimeter)
schemes etc 646,529,000 646,529,000 646,529,000 646,529,000 646,529,000
78,080,000 78,080,000 78,080,000 390,400,000 P1
50m MK pa.
1,935,200,000 P1
Substantial part of this cost has already been paid
for. 100m MK pa GoM average contribution
52 Development and use of water harvesting 315,000,000 315,000,000 0 0 0
630,000,000 P2
Once systems developed during the first two
years can be used for more than five years and
beyond
53 Reach farmers with extension services 8,718,931 8,718,931 8,718,931 8,718,931
8,718,931 43,594,655 P1F Ongoing programme
54 Source pesticides and spray equipment for migratory pest
control 41,000,000 28,000,000 28,000,000 28,000,000 28,000,000 153,000,000 P2
Cost after first year does not include spray
equipment
55 Monitor/forecast outbreaks of migratory pests 5,500,000 5,500,000 5,500,000
56 Promote processing and proper handling and storage of
agricultural products via extension services 358,886 358,886 358,886 358,886
358,886 1,794,430 P2F Ongoing activity
57 Train farmers on low cost soil fertility management
techniques through extension services 5,000,000 5,000,000 5,000,000 5,000,000
5,000,000 25,000,000 P3F Ongoing activity
20,000,000 20,000,000 96,000,000 P1
evaluation
59 Facilitate access to credit, equipment and technology to
assist in value addition 3,500,000 9,000,000 6,000,000 2,400,000 1,500,000
22,400,000 P2 Identify resources for lending, establish a credit
reference bureau and support the MFI network
artisans and linking them to
loans
61 Undertake skills upgrading 10,000,000 5,000,000 5,000,000 4,000,000
24,000,000 P3 Accommodation, consultancy, stationery etc
62 Put in place strategies to help livestock farmers reach
markets 2,650,000 2,650,000 2,650,000 2,650,000 2,650,000 13,250,000 P1F Ongoing
activity
63 Strengthen advisory services in the production and

marketing of livestock and its products 12,116,100 12,116,100 12,116,100
6,320,000 4,520,000 4,520,000 41,655,095 P1
beneficiaries+feeds. Implemented under MASAF,
Social Support Programmes
65 Strengthen surveillance in the control of livestock and crop
pests and diseases 24,232,200 24,232,200 24,232,200 24,232,200 24,232,200
121,161,000 P2F Ongoing activity
Natural Resources
67 Provide fish landing facilities and train communities trained
in modern fish processing 13,940,000 3,400,000 2,200,000 2,530,000 2,909,500
24,979,500 P3 Expanding scale of project. Jetties, beach access
facilities, cold rooms. Additional to donor project.
48,875,000 56,206,250 329,481,250 P1
and rehab and stocking of 500 fish ponds in total.
Presidential initiative. Costs based on project
concept note
69 Carry out capture fisheries programmes 7,450,000 9,450,000 14,600,000
16,790,000 19,308,500 67,598,500 P3 Natural inland water fisheries. Monitoring,
data
analysis and resource management.
70 Develop accreditation facilities for fish export 65,960,000 45,400,000
27,200,000 31,280,000 35,972,000 205,812,000 P2
Laboratories, detergents, lab equipment. EPAs,
focal point for inland fisheries. Laborities and
testing infrastructure large part of cost
71 Promote regional and international trade 20,900,000 46,600,000 30,900,000
35,535,000 40,865,250 174,800,250 P1F
Trade regulatory framework, policy, competent
authority. Impact studies and consultations for
EPA and afterwards. Donor funded 1.6m Euros
for studies and consultations (240m MK)
uncertain.
Forestry
72
Review the sustainability of de-linking the commercially
productive component of the industrial forest plantations of
the forestry department from the protection and extension
forestry components
2,000,000 2,000,000 3,000,000 2,000,000 0 9,000,000 P3F Reports. Donor funded
73 Introduce appropriate incentives to promote investment in
forest industries 2,000,000 2,000,000 3,000,000 0 0 7,000,000 P3 Investments
74 Registration with international standard bodies 4,000,000 3,000,000 2,000,000
1,000,000 1,000,000 11,000,000 P3 Reports
75 Undertake national surveys and documentation of forestry
industry statistics 2,000,000 2,000,000 1,000,000 0 0 5,000,000 P3 Reports
76 Improve forest products marketing and develop standards
and value added in the forestry industry 15,000,000 18,000,000 12,000,000
12,500,000 10,000,000 67,500,000 P3 Reports and standards
1,204,300,000 5,167,800,000 P1
MASAF or DAs - donor funded. 1.2m Euros (2006-
2011) committed by donors of which some
78 Identify training needs and develop training programmes 2,000,000 2,000,000
1,000,000 1,000,000 0 6,000,000 P2 Reports
79 Improve human resources capacity in the forestry sector 55,000,000 57,500,000

59,000,000 60,000,000 56,000,000 287,500,000 P2 No of people trained
80 Enforce forestry law 6,050,000 6,300,000 6,410,000 6,420,000 6,550,000
31,730,000 P2 Reports
funded /GoM
82 Recruit and retain environmental lawyers and develop
capacity to enforce standards 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000
15,000,000 P2 Environmental lawyers, appeals tribunal. GoM
83 Design and implement economic instruments to promote
sound environmental management 13,000,000 13,000,000 5,000,000 0 0 31,000,000
P1F Economic instruments. Donor funded
84 Development environmental standards 8,000,000 8,000,000 8,000,000 0 0
24,000,000 P2 Environment standards. Donor funded/GoM
85 Strengthen legal framework 30,000,000 26,200,000 22,496,000 22,895,680
20,407,334 121,999,014 P2
86
Establish and implement coordinating mechanism for
implementing international environmental conventions:
biodiversity, climate change, POPs, waste management,
Montreal, desertification etc.
7,500,000 8,100,000 8,748,000 9,447,840 10,203,667 43,999,507 P2F International
conventions. Donor funded
87 Coordinate implementation of Clean Development
Mechanism 12,500,000 13,500,000 14,580,000 15,746,400 17,006,112 73,332,512 P2
Cleaner technologies. CDM projects. 8% increase
in inputs assumed pa
88 Harmonize sector-specific strategies for dealing with
problems affecting common resources 0 0 10,000,000 10,000,000 10,000,000
30,000,000 P2F Sector-specific strategies. Donor funded
89
Develop policies and strategies for coordination of common
programme and activities undertaken by the various
stakeholders
30,000,000 30,000,000 150,000,000 P1
operational. GoM. District level implements, funds
via EAD, MoMNRE
Environmental Education andAwareness
93 Develop Environmental Information Management System
(EIMS) 20,000,000 10,000,000 5,000,000 5,000,000 5,000,000 45,000,000 P2F EIMS.
Donor funded
95 Conservation and Wildlife
pa. 2 radios pa.
97 Construct a sanctuary in Kasungu National Park in order to
repopulate the park 10,000,000 7,500,000 5,000,000 2,500,000 25,000,000 P1 100%
additional
98
electricity supply)
40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 200,000,000 P1
infrastructure to be provided/rehabilitated by other
GoM departments. Based on 2 protected areas
pa
99 Procure materials and drugs for tsetse control 11,250,000 10,000,000
10,000,000 31,250,000 P3 100% additional
100 Support communities to establish wildlife based enterprises
(e.g. ranching, farming, bee keeping) 5,000,000 5,000,000 5,000,000 5,000,000
5,000,000 25,000,000 P2 100% additional
101 Develop a PAC strategy and guidelines 5,000,000 5,000,000 5,000,000
5,000,000 5,000,000 25,000,000 P2 100% additional
103 Translocate dangerous animals to Protected Areas (Pas) 15,000,000 20,000,000
25,000,000 10,000,000 5,000,000 75,000,000 P3 100% additional
104 Conduct monitoring of key wildlife species 5,000,000 5,000,000 5,000,000
5,000,000 5,000,000 25,000,000 P2 100% additional
105 Develop research plan and guidelines 3,250,000 3,000,000 6,250,000 P2 100%
additional
106 Procure high tech research and monitoring equipment 3,000,000 3,000,000
3,000,000 3,000,000 3,000,000 15,000,000 P3 100% additional. Computers,
binoculars
SUB THEME 1 TOTAL 5,670,999,976 5,453,408,781 4,096,933,365 3,790,881,022
4,017,488,877 23,029,712,020
SUB THEME 2 Enabling Environment for Private Sector

Led Growth
Competitiveness
20,000,000 20,000,000 15,000,000 80,000,000 P1
from donors
108
areas (TEVET)
225,000,000 225,000,000 500,000,000 500,000,000 500,000,000 1,950,000,000 P1
period. Building unit cost 5.8m MK pa. Workshop
cost min 30m MK. Increase from 07/08 to 08/09
due to recruitment, holding expenses for more
students and upgrading of institutions. Some
donor assistance anticipated but most of this is
109 Update curriculum and equipment for economic needs
(vocational centres) 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000
60,000,000 P3 Secondary schools have funding, but this
addresses the vocational education costs
110 Increase enrolment of general education students in
vocational programme 20,000,000 20,000,000 20,000,000 30,000,000 30,000,000
120,000,000 P3
3,000,000 10,000,000 P1
Partly funded by donors. Travel, accommodation,
meetings, consultations etc
100,000,000 100,000,000 347,000,000 P1
114 Enhance coordination amongst micro finance institutions 2,000,000 2,000,000
2,500,000 0 0 6,500,000 P2
115 Increase loanable funds for SMEs 200,000,000 300,000,000 400,000,000
500,000,000 500,000,000 1,900,000,000 P2 Private sector funded
116 Improve infrastructure for SMEs 15,000,000 100,000,000 150,000,000 0 0
265,000,000 P2
Increased Investment 0
1,000,000 1,000,000 0 20,000,000 P1
Labour market surveys (120m MK for labour force
sample survey), policy development,
themes 15,000,000 25,000,000 25,000,000 15,000,000 5,000,000 85,000,000 P1
SUB THEME 2 TOTAL 563,000,000 789,500,000 1,213,000,000 1,181,000,000
1,162,000,000 4,908,500,000
121 Establish and enforce phyto-sanitary rules and regulations 3,200,000
3,200,000 3,200,000 3,200,000 3,200,000 16,000,000 P2 Ongoing activity
72,000,000 72,000,000 72,000,000 360,000,000 P1

warning system 8,377,000 8,377,000 2,750,000 2,750,000 2,750,000 25,004,000 P1
18,265,000 P1
SUB THEME 3 TOTAL 90,697,000 90,697,000 85,070,000 85,070,000 85,070,000
436,604,000
125 Harmonise standards for cross border and transit trade with
neighbouring countries 2,000,000 1,500,000 500,000 500,000 500,000 5,000,000 P2
donors and GoM. After
2008/09 totally GoM funded
127 Reorient Malawi Export Promotion Council 5,000,000 4,000,000 4,000,000
4,000,000 4,000,000 21,000,000 P2
128 Establish trade finance scheme 50,000,000 100,000,000 100,000,000
150,000,000 200,000,000 600,000,000 P2 Export credit guarantee scheme
129 Upgrade trade related skills of key staff in target institutions 2,000,000
3,000,000 4,000,000 5,000,000 5,000,000 19,000,000 P2
130 Enhance capacity building for producers and exporters 5,000,000 7,000,000
7,000,000 7,000,000 7,000,000 33,000,000 P2
131 Strengthen analytical capacity for trade policy analysis and
implementation 37,500,000 0 0 0 37,500,000 P2 Project
running
133 Export Promotion Council enabled to coordinate adequately
export promotion activities in Malawi/Re orient MEPC 90,000,000 90,000,000
70,000,000 70,000,000 70,000,000 390,000,000 P1 Export development Initiatives.
Need to
SUB THEME 4 TOTAL 378,980,000 367,980,000 255,500,000 301,500,000 351,500,000
1,655,460,000
1,000,000 0 0 10,000,000 P1
135
Strengthen core function of ADMARC in geographical areas
which are underserved by the private sector including
through reform of ADMARC
540,000,000 540,000,000 540,000,000 540,000,000 540,000,000 2,700,000,000 P1
136 Promote the deployment and exploitation of ICTs to support
the activities of the agricultural sector 12,000,000 12,000,000 12,000,000
12,000,000 12,000,000 60,000,000 P2 Coordinated by OPC
of cooperatives in rural areas 6,919,000 6,919,000 0 0 0 13,838,000 P2 2
consultants and stakeholder workshops
138 Strengthen policy environment for SMEs and Cooperatives 2,000,000 3,000,000
500,000 0 5,500,000 P2 Formulation and consultative costs
10,000,000 10,000,000 75,000,000 P1
140 Establish National Economic Empowerment Council 20,000,000 45,000,000
45,000,000 25,000,000 25,000,000 160,000,000 P2 Land, staffing, equipment,
furniture, vehicle etc
private sector
142
Establish programmes for increasing opportunities to
participate in economic activities including through creation
of a Product Development Fund
100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 500,000,000 P2
Capitalisation should be adequate for an effective
programme
143 Introduce tax incentives for private sector institutions
participating in rural industries 35,000,000 35,000,000 5,000,000 5,000,000
5,000,000 85,000,000 P2
144 Review the possibility of providing grants to match private
sector funding for empowerment related projects 14,000,000 14,000,000 14,000,000
0 0 42,000,000 P2
P1
147 Improve infrastructure for SMEs 100,000,000 100,000,000 100,000,000

100,000,000 100,000,000 500,000,000 P2 SME shed programme
148 Establish an SME Apex institution 12,300,000 9,000,000 4,500,000 2,500,000 0
28,300,000 P3
149
Formulate and execute an improved training programme on
small scale business management (OVOP) - capacity
building
66,600,000 66,600,000 66,600,000 39,100,000 39,100,000 278,000,000 P1 OVOP
project. To be donor funded and also GoM
51,900,000 26,400,000 26,400,000 208,500,000 P1
5,000,000 P1
152 Provide technical support from private sector programmes
related to off farm employment 5,000,000 5,600,000 7,000,000 10,000,000
10,000,000 37,600,000 P2 Private sector funding
153 Organise communities to produce outputs or develop local
industry 0
154 Strengthen understanding of micro-finance 2,000,000 2,000,000 2,000,000
4,000,000 4,000,000 14,000,000 P2
155 Enhance capacity of courts to handle business cases 0 0 P3
156
Encourage financial institutions to design tiered loan
packages to provide incentives to borrowers for loan
repayment
500,000 500,000 500,000 500,000 500,000 2,500,000 P2
3,000,000 3,000,000 14,000,000 P1
159 Provide training to all people who borrow for business
purposes through the training unit of the NEEC 5,000,000 5,000,000 5,000,000
5,000,000 5,000,000 25,000,000 P2
160 Support finance institutions in designing differentiated
financial products 2,000,000 5,500,000 8,000,000 4,000,000 19,500,000 P2 2
consultants and a workshop
161
Develop and strengthen the micro-finance sector to serve
small scale concerns and as part of the broader financial
system
2,000,000 3,000,000 3,000,000 4,000,000 4,000,000 16,000,000 P2
162 Develop a charter to increase the employment opportunities 6,000,000
6,000,000 4,000,000 4,000,000 3,000,000 23,000,000 P2
163 Enhance institutional framework supporting the
development of women entrepreneurs 12,500,000 15,000,000 12,500,000 5,000,000
45,000,000 P3
Development of Malawi Entrepreneur
Development Institute - subvented. Strengthening
laws - disability law, labour laws,
164 Train women in entrepreneurial skills and ability to manage
businesses 20,000,000 30,000,000 3,750,000 50,000,000 103,750,000 P2
165
25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 125,000,000 P1
150,000,000 150,000,000 870,000,000 P1
SUB THEME 5 TOTAL 1,402,219,000 1,428,269,000 1,288,750,000 1,136,500,000
1,177,750,000 6,433,488,000
167 Review and reconcile existing laws to ensure compatibility
with the land policy 10,000,000 20,000,000 10,000,000 0 0 40,000,000 P1F Funding
for this activity is secured thus this is not
additional
168 Develop a carefully structured programme on land
administration and land records 0 50,000,000 0 50,000,000 P2 100% additional
100% additional

400,000,000 600,000,000 1,000,000,000 1,000,000,000 3,300,000,000 P1
171 Establish viable land markets 15,000,000 20,000,000 0 0 0 35,000,000 P2 100%
additional
282,250,000 400,000,000 162,500,000 0 1,124,750,000 P1 100% additional
173 Provide credit to support off farm livelihoods enhancing
activities 30,000,000 50,000,000 35,000,000 10,000,000 0 125,000,000 P2 100%
additional
174 Promote public awareness on land rights and land policy in
general 15,000,000 20,000,000 20,000,000 5,000,000 5,000,000 65,000,000 P1 100%
additional
100% additional
additional
177 Review Land Use Legislation 10,000,000 30,000,000 0 0 0 40,000,000 P2 100%
additional
178 Review of the National Physical Development Plan 10,000,000 0 0 0 10,000,000
P2 100% additional
179 Review the Town and Country Planning Act, planning
standards and regulations 45,000,000 30,000,000 0 0 0 75,000,000 P3 100%
additional
180 Sensitise local communities in aspects of land use planning
environment and community land resource management 8,000,000 7,000,000 5,000,000
6,000,000 6,000,000 32,000,000 P3 100% additional
184 Procurement of modern equipment for surveying, planning
and valuation 50,000,000 20,000,000 0 0 0 70,000,000 P3 100% additional
0 0 35,000,000 P1 100% additional
186
10,000,000 15,000,000 0 0 0 25,000,000 P1 100% additional
187
Mobilize resources to meet varying housing demands,
particularly rental housing for low-income and vulnerable
groups
7,500,000 27,500,000 20,000,000 20,000,000 0 75,000,000 P2 100% additional
188 Facilitate formulation of special funding schemes for groups
in poverty and the most vulnerable groups 5,000,000 2,000,000 0 0 1,000,000
8,000,000 P2 100% additional
0 20,000,000 P1 100% additional
190 Promote and encourage community participation in
infrastructure provision and maintenance 5,000,000 1,000,000 0 0 0 6,000,000 P3
100% additional
191
Conduct civic education/public awareness on the
importance of housing and available housing programmes
and/or housing delivery systems.
20,000,000 15,000,000 5,000,000 0 0 40,000,000 P3 100% additional
192
Facilitate the formulation of housing and multi-purpose
community development cooperatives, especially for
providing low-income housing
2,000,000 1,000,000 4,000,000 0 0 7,000,000 P3 100% additional
SUB THEME 6 TOTAL 927,500,000 1,070,750,000 1,132,000,000 1,213,500,000
1,022,000,000 5,365,750,000
7,815,808,877 41,829,514,020
194 Provide nutritious food and home based care kits to those
infected by HIV and AIDS 64,562,500 64,562,500 64,562,500 64,562,500 64,562,500
322,812,500 P3 Food supplies+monitoring visits. Funds from
NGOs and MoH
195 Provide supplementary feeding to malnourished pregnant,
lactating mothers, and under five children 154,015,000 154,015,000 154,015,000
154,015,000 154,015,000 770,075,000 P3 Data from MoH
196 Promote targeted school feeding programme to the most
vulnerable 624,000,000 624,000,000 624,000,000 624,000,000 624,000,000
3,120,000,000 P3F Donor funded
197 Promote therapeutic feeding to severely malnourished

under five children 147,812,000 147,812,000 147,812,000 147,812,000 147,812,000
739,060,000 Food supplies and monitoring visits
198 Expand small stock (e.g. goats, chickens etc) and grain
mills programme for the most vulnerable 450,000,000 450,000,000 450,000,000
450,000,000 450,000,000 2,250,000,000 P3
2 goats/10 chickens for 100,000
beneficiaries+feeds. Implemented under MASAF,
Social Support Programmes.
199 Introduce conditional and non conditional cash transfers to
infirmed, elderly, disabled, orphans, OVCs 375,000,000 375,000,000 375,000,000
375,000,000 375,000,000 1,875,000,000 P3F Donors fully funding. 300000 orphans @
K1000/orphans/month+admin costs
200 Support the most vulnerable with food and non food items
for their upkeep 32,000,000 32,000,000 32,000,000 32,000,000 32,000,000
160,000,000 P3 Includes support for ECD, Child protection. Donor
and GoM funded
201
Practice better prioritisation, design, delivery, and review of
safety nets/social protection programmes framework to be
consistent with MGDS
12,000,000 6,000,000 3,000,000 1,500,000 1,500,000 24,000,000 P1 Consultancy
costs, workshops
202 Promote and provide access to poor farm families to
agriculture inputs (subsidies, free inputs) 1,400,000 1,400,000 1,400,000
1,400,000 1,400,000 7,000,000 P2F
Inputs subsidy for most vulnerable. TIP. Fully
funded by GoM. 28 districts x 10 blind farmers x
K5,000 (subsidised)
203
Implement productivity enhancing interventions (e.g. public
works programmes: river diversion for irrigation,
afforestation, reservoir/dam construction, dykes, roads)
3,500,000,000 3,500,000,000 3,500,000,000 3,500,000,000 3,500,000,000
17,500,000,000 P1F
Employment cost 250,000 beneficiaries @
K125/day for 60 days+administrative cost.
MASAF and other donor funded. Fully funded
204 Enhance non-traditional PWP (e.g. manure making, bush
clearing) 750,000,000 750,000,000 750,000,000 750,000,000 750,000,000
3,750,000,000 P1F
100,000 beneficiaries @ K125/day for 60
days+administrative cost. Mainly urban based.
205 Promote small scale productive activities 250,000,000 250,000,000
250,000,000 250,000,000 250,000,000 1,250,000,000 P2
25,000 beneficiaries @ K20000
each+administrative costs. Microfinance via
NGOs
207 Provide low cost housing to the poor and vulnerable 35,000,000 35,000,000
35,000,000 35,000,000 35,000,000 175,000,000 P3F Fully GoM funded for last 3
yrs. 70 houses pa.
400,000 MK per house
208 Increased access to rehabilitation services by persons with
disabilities 53,750,000 53,750,000 53,750,000 53,750,000 53,750,000 268,750,000
P1
Equipment for braille printing and workshops. print
chichewa braille primers K500,000; purchase of a
braille emboss K2,000,000; braille writing slates
100 x K2,500 =K250,000
16,567,070 60,448,830 175,323,460 P1 100% additionality
P1
requirement)
212 Activities of Child Labour Control Unit 20,000,000 20,000,000 25,000,000
25,000,000 25,000,000 115,000,000 P2 Establishing unit in MoLVT. Equipment
(car), HR
SUB THEME 1 TOTAL 6,724,587,197 6,637,757,897 6,639,580,967 6,551,606,570
6,595,488,330 33,149,020,960
213 Promote integration of disaster management into
sustainable development programming at all levels 21,200,000 11,200,000
3,200,000 3,200,000 3,200,000 42,000,000 P1F
Development of plans for disaster response.
Donor funded, 7-8m MK. Additional. Funds not
usually provided through the GoM budget, until
disaster arrives.
214 Establish an effective early warning system 205,812,000 205,812,000

20,830,000 20,830,000 20,830,000 474,114,000 P2
Equipment purchase. Donor and GoM funded.
Additional - no request previously made. 519m
MK Dept of Meteorological Services (Ministry of
Transport); 105m MK Ministry of Water
Development.
215 Provide timely emergency relief assistance to affected
people 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 500,000,000
P3
216 Improve mitigation and rehabilitation of areas affected by
disaster 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 40,000,000 P3
SUB THEME 2 TOTAL 335,012,000 325,012,000 132,030,000 132,030,000 132,030,000
1,056,114,000
6,727,518,330 34,205,134,960
SUB THEME 1 Health
217 Increase student intake into medical/health training
institutions 1,196,000,000 1,196,000,000 1,196,000,000 1,196,000,000
1,196,000,000 5,980,000,000 P1F swap prog 1.1 action 1 p43
218 Provide ARVs to HIV and AIDS infected health workers 81,900,000 171,600,000
302,250,000 468,000,000 668,850,000 1,692,600,000 P1F $300 pc cost of ARV pa.
Funded from Global
Fund.
219 Provide incentives to health workers at the local level
(proper working hours, etc.) 3,861,000,000 3,861,000,000 3,861,000,000
3,861,000,000 3,861,000,000 19,305,000,000 P2F swap p43 prog 1 output 1.2,
actions 1,2,8,9
220 Develop strategy to sustainably maintain qualified health
workers for the front line 11,908,000 9,776,000 9,776,000 9,776,000 0 41,236,000
P2F swap p50 prog 6 sub-prog 6.2 output 4 actions 1,2
221 Improve pharmaceutical and medical supplies and
distribution for timely procurement to reach health facilities 2,581,800,000
2,891,200,000 3,239,600,000 3,627,000,000 4,062,500,000 16,402,100,000 P1F swap
p44 prog 2 output 2.1, 2.2
222 Undertake close monitoring of drug management and
utilization 8,775,000 8,775,000 8,775,000 8,775,000 8,775,000 43,875,000 P3F
swap p51 prog 6 sub-prog 6.2.2 sub-output 3
actions 1, 2
223 Provide vaccines at clinics/communities 904,234,370 904,234,370 904,234,370
904,234,370 904,234,370 4,521,171,850 P1F
Vaccines- new vaccines for children under 1yr.
$6m pa - cost will decrease over time; $0.955649
(BCG, TT, measles, OPV) pa. Target 100%. Not
factored in population growth, 1.9% growth rate
balances out cost decrease. 05/06 $1m in budget,
remainder funded by donors.
224 Provide bed nets at clinics/communities 78,000,000 78,000,000 78,000,000
78,000,000 78,000,000 390,000,000 P1F
Based on a target of 60% of pregnant women and
children under 5 yrs, i.e. 200,000. Cost per net of
$3,
225 Strengthen training capacity in college of medicine for
pharm qualifications 171,600,000 171,600,000 171,600,000 171,600,000 171,600,000
858,000,000 P3F Costed in the Emergency Human Resource Plan
2004.
226
Rehabilitate, construct and maintain health structures:
buildings, medical equipment, telecommunication, electricity
and water through the facilities development program
1,173,900,000 1,300,000,000 1,361,100,000 1,436,500,000 1,436,500,000
6,708,000,000 P1F swap p46, prog 4 sub-progs 4.1, 4.2, 4.3, 4.4, 4.5
227 Improve planning and budgeting at all levels through
systems development at the central and district level 260,000 260,000 260,000
260,000 260,000 1,300,000 P1F swap p51 prog 6 sub-prog 6.2.2 sub-output 1
actions 1, 2
228 Undertake close monitoring of financial flows and usage 0 3,887,000 0
3,887,000 0 7,774,000 P1F swap p51 prog 6 sub-prog 6.2.2 sub-output 1
action 3
229 Modernize the operations of the health delivery system 21,000,000 20,909,091
19,834,711 24,000,000 24,000,000 109,743,802 P2
230 Introduce VIP latrines and other appropriate rural water
sanitation technologies 0 0 0 0 0 0
SUB THEME 1 TOTAL 10,090,377,370 10,617,241,461 11,152,430,081 11,789,032,370
12,411,719,370 56,060,800,652
231
Policy
232
micronutrient deficiency disorders particularly those caused
by Vitamin A, Iodine and iron deficiencies
in Nutrition Policy
233
Promotion of control, prevention and treatment of diseases
that have direct impact on nutrition and health status
average commercial
rates
234
300,000 300,000 300,000 300,000 300,000 1,500,000 P1 Based on policy
235
nutrition workers
237
Establishment of nutrition resource centres at all levels (i.e.
central, districts and community levels)
their requirements
238
nutrition
and
dissemination
239
Increase access and availability of services and information
to prevent consumers from health hazards
140,000 140,000 140,000 140,000 140,000 700,000 P2 Based on estimated cost of
quantity food
inspection, analysis, information dissemination
and clinical trials on new food
240
Review and include nutrition in the curricula of all learning
and training institutions
600,000 50,000 40,000 30,000 100,000 820,000 P2 Based on estimated cost
241
Policy design, dissemination, legislation and enforcement 350,000 20,000 20,000
25,000 100,000 515,000 P2 Based on policy
242 Advocacy and lobbying 250,000 120,000 120,000 120,000 120,000 730,000 P2
Estimated cost of planned activities
243
Initiate research on socio-economic impact of Nutrition 90,000 90,000 90,000
90,000 90,000 450,000 P2 20000/Study/Year
244
Harmonize and improve and nutrition security information
system for evidence based intervention
125,000 20,000 20,000 20,000 20,000 205,000 P3 Estimate based on the cost of a
similar exercise
245 Conduct Nutrition fairs at all levels 50,000 50,000 50,000 50,000 50,000
250,000 P3 Estimated cost of 10/S, 7/C, 6/N Fairs
246 Observe international Nutrition days 30,000 30,000 30,000 30,000 30,000
150,000 P3 Based on estimated cost
SUB THEME 2 TOTAL 3,466,617 2,256,617 2,077,417 2,017,057 2,104,769 11,922,477
247 Expand and scale up the scope and depth of HIV and AIDS
communication at local level 3,275,609,350 3,950,670,750 2,353,423,150
1,189,598,150 1,189,598,150 11,958,899,550 P1
148,232,500 148,232,500 757,900,000 P1
119,042,235 921,186,175 P1
250 Strengthen socio-cultural values and practices that prevent
the spread of HIV 6,630,000 14,430,000 10,725,000 14,917,500 14,917,500
61,620,000 P1
357,266,000 1,551,017,000 P1
252 Increase district and community level outreach for changing
practices 256,061,000 330,161,000 263,373,500 232,661,000 232,661,000
1,314,917,500 P1
379,358,200 1,939,789,800 P1
254
990,748,200 1,193,203,700 1,338,498,200 1,512,178,200 1,512,178,200
6,546,806,500 P1
139,965,800 1,077,391,250 P1
256
168,018,500 169,318,500 132,106,000 51,018,500 51,018,500 571,480,000 P1
impacts of HIV/AIDS
4,525,625,000 5,395,000,000 5,395,000,000 21,758,750,000 P1
258 Strengthen an integrated ART infrastructure and logistic
systems and a national quality assurance program for ART 95,048,200 119,384,200
29,918,200 25,888,200 25,888,200 296,127,000 P2
259 Expand provision and access to high quality and integrated
community home-based care (CHBC) services 193,505,000 708,500,000 129,376,000
94,276,000 94,276,000 1,219,933,000 P2
260 Establish mechanisms and Expand delivery of nutritional
support/ therapy to PLHA 949,053,300 1,467,772,800 1,468,097,800 1,457,372,800
1,457,372,800 6,799,669,500 P2
Mitigation of socio-economic and psychosocial impacts
of HIV/AIDS P2
261 Promote sustainable income generation and advocacy for
micro-finance programs for the infected and affected 377,858,000 454,675,000
253,500,000 245,180,000 245,180,000 1,576,393,000 P2
262 Promote and protect the rights of those infected and
affected 85,930,000 91,780,000 66,430,000 52,780,000 52,780,000 349,700,000 P2
263
Strengthen capacities of communities, districts, PLHA
Associations and FBOs to provide psychosocial support
and counselling
406,608,800 342,076,800 332,846,800 224,965,000 224,965,000 1,531,462,400 P2
based services 1,914,218,800 1,821,138,800 1,843,628,800 1,704,788,800
1,704,788,800 8,988,564,000 P1
265 Promote food security and nutrition among HIV affected
households 8,242,000 8,242,000 6,292,000 6,292,000 6,292,000 35,360,000 P2
Effective and efficient implementation of HIV/AIDS
response across the public and private sectors
266
Develop capacity and partnerships for a shared and
common understanding of mainstreaming in both public and
private sectors including civil society, NGOs, CBOs and
FBOs
927,392,700 145,293,200 89,048,700 80,650,700 80,650,700 1,323,036,000 P2
267 Increase the capacity of District Assemblies to oversee
HIV/AIDS activities in their districts 93,394,600 62,324,600 64,326,600
15,849,600 15,849,600 251,745,000 P2
268 Improve HIV/AIDS data collection, dissemination and
utilization at both national and district levels 288,611,700 705,424,200
396,492,200 137,532,200 137,532,200 1,665,592,500 P2
269 Improve planning, coordination and resource mobilisation in
the spirit of the three ones 541,937,500 433,420,000 340,080,000 333,190,000
333,190,000 1,981,817,500 P2 Y1 and Y2 include costs for integrating HIV/AIDS
in GoM plans and policies
270 Implement strategic approach to research and development 534,472,900
566,668,700 585,707,200 613,072,200 613,072,200 2,912,993,200 P2
SUB THEME 3 TOTAL 15,339,581,335 17,386,191,485 15,604,122,885 14,531,179,585
14,531,075,585 77,392,150,875
Primary
271 Expand and improve existing infrastructure and maximize
its use 845,000,000 845,000,000 845,000,000 845,000,000 845,000,000
4,225,000,000 P2
117,000,000 117,000,000 117,000,000 585,000,000 P1
273 Undertake social awareness campaigns and whole school
development 24,375,000 24,375,000 24,375,000 24,375,000 24,375,000 121,875,000
P3 $250/schoolx1500 primary schools whole country
274
development
357,825,000 328,110,714 627,110,714 692,110,714 714,396,429 2,719,553,571 P1
275 Provide adequate supply of teacher learning materials and
a child friendly environment 436,888,179 233,423,113 238,091,575 242,853,407
247,710,475 1,398,966,748 P2 $3.5 m 10 Y
276 Improve overall management and monitoring of inspection,
supervision and advisory 15,759,366 15,759,366 15,759,366 15,759,366 15,759,366
78,796,830 P1
Primary school inspection: 84 new inspectors; 25$
per headteacher (5159). PE 73%; training cost
27%
277 Mobilize community participation in primary school
management 33,533,500 16,766,750 16,766,750 16,766,750 16,766,750 100,600,500 P3
278 Review policies related to girls 1,392,857 1,392,857 1,392,857 1,392,857
1,392,857 6,964,286 P2
279 Provide block grants to schools to address equity issues 73,567,000
85,174,143 73,567,000 73,567,000 73,567,000 379,442,143 P2 200 000$ pa. $400 per
school for 5159 primary
schools
280 Review policies related to SN Education 1,392,857 1,392,857 1,392,857
1,392,857 1,392,857 6,964,286 P2
282 Provide direct assistance to schools to address equity
issues (relevant textbooks, brail, etc.) 14,760,000 14,760,000 14,760,000
14,760,000 14,760,000 73,800,000 P2
15 visually impaired schools (50,000MK per
month each, 9m MK total); 4 hearing impaired
schools (120,000MK per month each, a total of
5.76m MK) Total for both schools 14.76m MK pa.
A one-off grant of $600 per primary school per
year.
283 Design and standardized sign language for the deaf and
dumb 6,500,000 0 0 0 0 6,500,000 P3 One off grant $50,000
284
curriculum to include academic and non academic needs of
pupils and the effective orientation of teachers – introduce
PCAR curriculum
35,687,282 36,164,465 36,894,371 37,632,765 38,379,817 184,758,700 P1
pupil. ORT - $2 per 1or2 pupils; training - $10 per
teacher pa. TA 28%; ORT 63%; training 9%
3,182,400 15,912,000 P1 $240pc pa for 1020 master teachers. Covers also
managers, inspectors. Training only
286 Equip school planners with appropriate knowledge and
skills in micro-planning, monitoring and data management 10,011,105 10,011,105
10,011,105 2,956,005 2,956,005 35,945,325 P3
$100 pa for officials of the MoE for 3 years. 3867
officials involved in decentralization. information
on the decentralization process 5200 schools, $30
per school pa. PE 83%; training 17%
Secondary
for
288 Introduce double shift in urban school 6,500,000 6,500,000 6,500,000
6,500,000 6,500,000 32,500,000 P3 10 double schools x$5000
289 Increase access to secondary distance education 32,500,000 32,500,000
32,500,000 32,500,000 32,500,000 162,500,000 P3 10000 students $50 pa per school
678,600,000 3,241,550,000 P1
education 58,500,000 58,500,000 58,500,000 58,500,000 58,500,000 292,500,000 P1
292 Provide girl-friendly environment, in particular

accommodation in 90 secondary schools 557,142,857 557,142,857 557,142,857
557,142,857 557,142,857 2,785,714,286 P1F This is assuming constructing 15
accommodation
hostels a year at 40 million MK pa. Donor funded
293 Increase bursaries for the needy secondary students 88,400,000 93,600,000
97,500,000 101,400,000 105,300,000 486,200,000 P1F Expected to be in the budget.
Taken from
Education Sector Plan
294 Provide female secondary school teachers as models -
recruitment, deployment and training 289,286 300,000 310,714 321,429 332,143
1,553,571 P2
Target 1:40 female teacher: female pupil ratio. In
2005 ratio of 1:126. Need additional 1,337
teachers pa. Per teacher 150,000 MK pa.
Increase this by 10 teachers pa to take into
account pupil growth rate. 270 teachers in yr 1.
Training only as 5yrs to fully train teachers
295 Improve and increase special needs education facilities in
existing colleges 32,500,000 32,500,000 32,500,000 32,500,000 32,500,000
162,500,000 P2 $100 per student, 2500 students
6,964,286 P1
297 Provide block grants to schools relevant to special needs 27,300,000
27,300,000 27,300,000 27,300,000 27,300,000 136,500,000 P3 Provide 700 secondary
with a block grant of $600
per year per school
298
Introduce and implement curriculum responsive to needs of
individuals and the nation by including academic and nonacademic subjects
6,500,000 6,500,000 6,500,000 71,500,000 46,428,571 137,428,571 P1 TA $1m in
299 Provide trained guidance counsellors to all secondary
schools 19,071,000 19,071,000 19,071,000 19,071,000 19,071,000 95,355,000 P3
$150 p.school per year, 978 schools
300 Train school managers in planning, monitoring and
supervision 8,125,000 8,125,000 8,125,000 8,125,000 8,125,000 40,625,000 P3 $250
per cluster 250 clust pa
301 Increase the procurement and distribution of teaching and
learning materials 150,000,000 19,937,161 20,075,904 20,217,422 20,361,770
230,592,257 P2 $41.5 per student pa 1 book for 2 students 1 book
lasts 6 years
System (DEMIS) 12,714,000 12,714,000 12,714,000 12,714,000 12,714,000 63,570,000
303
Improve education planning and equip planners with
knowledge and skills in planning, monitoring and data
management, including monitoring the delivery of supplies
in the schools
127,140,000 0 0 0 0 127,140,000 P2 1 time grant $1000 to the school dev fund. TA
cost
1,300,000 1,300,000 6,500,000 P1
Tertiary
306 Recruit and train more academic staff (50% at current
levels, 70% at Master’s level, 30% at PhD level) 68,410,000 73,570,000
78,730,000 83,630,000 89,050,000 393,390,000 P2
Priority to train but depending on the funds from
GoM would send determine how many could be
trained. No funding obtained before
308 Develop new, parallel programmes, distance/virtual
learning, and short courses 100,000,000 39,200,000 39,200,000 39,200,000
39,200,000 256,800,000 P3
309 Develop a student financing policy including a student loan
scheme 6,678,000 8,468,000 140,000 140,000 140,000 15,566,000 P1 Funding through
financial institutions. Not GoM
funded
310 Promote local production of teaching and learning materials 48,812,000
22,204,000 36,190,000 7,700,000 7,700,000 122,606,000 P2
311 Expand provision of internet services, broad band internet
access established campus wide 590,940 4,768,400 6,378,400 3,806,400 6,518,400
22,062,540 P2
312 Expand teacher training education programs for primary
and secondary education 369,920 4,862,180 6,420,620 8,503,300 11,303,500
31,459,520 P2 To go in line with 246 and 246a. TTC under remit
of University
313 Create an enabling environment to accommodate female
students and people with disabilities 100,000,000 100,000,000 100,000,000
100,000,000 100,000,000 500,000,000 P2

12,756,300 13,076,200 13,370,800 62,425,500 P1
316 Provide relevant skills to academic staff through regular
training 10,303,000 6,243,000 3,380,000 1,400,000 21,326,000 P3
317 Conduct regular curriculum reviews to match national
needs and modularise courses 0 7,000,000 3,703,000 8,230,000 2,010,000
20,943,000 P3
318 Provide labs with adequate modern equipment 0 0 0 0 0 0 Included in
rehabilitation and expansion of
physical infrastructure
319 Decentralize decision making processes 812,000 672,000 588,000 420,000
420,000 2,912,000 P2
P1
321
Establish planning units and equip planners with
appropriate knowledge and skills in planning, monitoring
and data management
70,000 3,640,000 3,710,000 P2
SUB THEME 4 TOTAL 5,716,659,456 4,081,450,876 4,150,676,898 4,275,720,836
4,303,891,104 22,528,399,170
SUB THEME 5 Gender
324 Undertake affirmative action to increase women decision
makers in high levels of the public and private sectors 16,250,000 7,800,000
8,450,000 10,400,000 13,000,000 55,900,000 P2 100 % additionality requirement
325 Include gender equality provisions in the Laws of Malawi 11,700,000
SUB THEME 5 TOTAL 120,770,000 112,645,000 103,545,000 108,095,000 112,320,000
557,375,000
31,361,110,828 156,550,648,174
Roads
327
decked bridges
1,387,880,000 1,489,020,000 1,523,730,000 1,587,170,000 1,625,910,000
7,613,710,000 P1
plan and represents 100% additional requirement
5,800,000 5,900,000 26,400,000 P1 100% additional
329 Modernisation and maintenance of Malawi Traffic
Information System (MALTIS) 50,000,000 30,000,000 20,000,000 30,000,000
30,000,000 160,000,000 P2 100% additional
2,000,000 46,000,000 P1
331 Harmonize country’s highway code, road signs, signals and
axle-load regulations within the region 2,000,000 2,000,000 2,000,000 2,000,000
2,000,000 10,000,000 P2 Needs to be determined at international forums.
100% additional requirement
332 Involve private sector in the monitoring and operations of
road transport services 3,200,000 3,800,000 3,200,000 3,800,000 4,000,000
18,000,000 P2 100% additional
Other
Shipping
260,000,000 P1 100% additional
335 Review concession agreements for inland shipping 0 5,200,000 0 0 0 5,200,000
P2 100% additional
336 Develop, rehabilitate and maintenance of port facilities 195,000,000

390,000,000 455,000,000 390,000,000 227,500,000 1,657,500,000 P2 100% additional
337 Strengthen the marine search and rescue 0 26,000,000 26,000,000 13,000,000 0
65,000,000 P2 100% additional
338 Establish international shipping line and negotiate with
Mozambique on ports 0 0 0 0 0 0 P3 100% additional
13,000,000 P1 100% additional
340 Resuscitate the National Shippers Council and maintain
selective membership in international organisations 0 130,000,000 65,000,000 0
195,000,000 P2 100% additional
65,000,000,000 65,000,000,000 325,000,000,000 P1 100% additional
Civil Aviation
500,000 34,500,000 P1 100% additional
343 Establish where feasible autonomous airport or Civil
Aviation authorities 260,000,000 130,000,000 130,000,000 0 0 520,000,000 P2 100%
additional
10,000,000 10,000,000 5,000,000 5,000,000 40,000,000 P1 100% additional
500,000,000 500,000,000 3,000,000,000 P1
346 Strengthen safety and security measures at all airports 50,000,000
10,000,000 10,000,000 10,000,000 10,000,000 90,000,000 P2 100% additional
347 Strengthen safety oversight provision in the aviation sector 3,000,000
2,000,000 1,000,000 500,000 500,000 7,000,000 P2 100% additional
Railways
348 Review the railways act 0 1,000,000 1,000,000 0 0 2,000,000 P2 100%
additional
SUB THEME 1 TOTAL 68,755,080,000 68,289,080,000 68,478,596,000 68,333,582,600
68,204,004,260 342,060,342,860
SUB THEME 2 Energy
349
Rehabilitate two more stations for power distribution and
complete the ones under construction (e.g. Kapichira power
station) and upgrade existing ones (Nkula A and B)
431,300,000 431,300,000 0 0 0 862,600,000 P1F Indicator: Generation capacity.
Donor funded
350 Engage in interconnection with Mozambique and
rehabilitation of existing power generation (2007) 210,000,000 210,000,000
210,000,000 210,000,000 210,000,000 1,050,000,000 P2F Indicator: Available
capacity. Donor funded
351 Rehabilitate and expand the transmission and distribution 30,000,000
30,000,000 30,000,000 0 0 90,000,000 P2 Indicator: Level of outage
352 Protect the catchment area along the lake and Shire river 50,000,000
30,000,000 30,000,000 20,000,000 20,000,000 150,000,000 P3 Indicator: Level of
outage
353
Reduce the cost of connection by using affordable
connection and metering methods (e.g. use of pre-wired
boards and pre-paid meters)
100,000,000 68,750,000 68,750,000 68,750,000 68,750,000 375,000,000 P3
Indicator: Cost of connection
354
Prepare a plan and delineate implementation
responsibilities for the reduction of siltation in reservoirs and
protect catchment area to lake Shire
20,000,000 20,000,000 40,000,000 P2 Indicator: Level of outage
355 Explore alternative energy sources (gas, coal, solar, etc.) 70,000,000
29,375,000 29,375,000 29,375,000 29,375,000 187,500,000 P2 Indictor:
Availability of alternative sources
356 Implement pumped storage power plant at Livingstonia 0 0 0 0 120,000,000
120,000,000 P3 Indicator: Generation capacity
357 Integrate planning of electrification, investment and
transport, water and ITC 6,300,000 6,300,000 6,300,000 6,300,000 6,300,000
31,500,000 P3F Indicator: Integrated plan. Fully funded
established
359
Improved management of ESCOM (including reform
electricity tariff structure) and improve the financial and
operational performance of ESCOM
36,300,000 36,300,000 0 0 0 72,600,000 P3 Indicator: Operational Efficiency
360
7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 37,500,000 P1 Indicator:
361 Rural communities use alternative energy supplies for
power in under served areas 0 0 0 0 0 0 Fully funded
362
Accelerate the rural electrification programme (promote grid
and off-grid rural electrification by public and private
providers)
125,000,000 125,000,000 125,000,000 125,000,000 125,000,000 625,000,000 P2
Indicator: No. of centres electrified
364 Create awareness of the use of renewable energy (solar,
wind, biomass, and micro hydro) 4,000,000 4,000,000 4,000,000 4,000,000
4,000,000 20,000,000 P2F Indicator: No. of people using renewables. Fully
funded
SUB THEME 2 TOTAL 1,185,400,000 1,068,525,000 580,925,000 540,925,000
660,925,000 4,036,700,000
365
3,250,000 16,250,000 21,666,667 16,250,000 7,583,333 65,000,000 P1 100%
additional
366
protection in an integrated manner including development of
small community and large dams (conservation areas
4,333,333 9,316,667 17,604,167 38,404,167 32,175,000 101,833,333 P1 100%
additional
367
Proactively implement management of water resources and
incorporate local governments and communities in planning
and management of water and sanitation including
catchment protection and rehabilitation
2,166,667 16,250,000 9,100,000 9,100,000 9,100,000 45,716,667 P1 100% additional
368 Develop Management Information System (MIS) for the
water and sanitation 43,333,333 65,000,000 45,500,000 10,833,333 10,833,333
175,500,000 P2 100% additional
369 Recognize and implement obligations to international
agreements 2,166,667 3,250,000 4,333,333 4,333,333 4,333,333 18,416,667 P3 100%
additional
370 Revise Water Resources Act of 1969 and Water Works Act 21,666,667 13,000,000
34,666,667 P1 100% additional
programs 10,833,333 16,250,000 21,666,667 21,666,667 21,666,667 92,083,333 P1
100% additional
10,833,333 54,166,667 P1 100% additional
Water quality and pollution control 0 0 0 0 0 0
108,333,333 P1 100% additional
375 Establish database on water quality 3,250,000 5,416,667 5,416,667 2,166,667
2,166,667 18,416,667 P2 100% additional
376
Improve skills, technologies, techniques in water quality
monitoring and pollution control (catchment rehabilitation,
determining water quality)
2,166,667 2,166,667 3,250,000 3,250,000 2,166,667 13,000,000 P2 100% additional
377 Strengthen institutional arrangements for environmental
management 3,250,000 2,166,667 2,166,667 2,166,667 2,166,667 11,916,667 P3 100%
additional
378 Develop and disseminate guidelines and standards on
10,833,333 54,166,667 P2 100% additional
379 Provide TA to local government and stakeholders on water
quality and pollution control 2,708,333 3,250,000 3,250,000 2,708,333 2,166,667
14,083,333 P3 100% additional
Urban, Peri-Urban and Market Centres 0 0 0 0 0 0

399,750,000 333,233,333 66,516,667 1,265,766,667 P1 100% additional
1,083,333,333 813,583,333 270,833,333 2,451,583,333 P1 100% additional
1,354,166,667 352,083,333 2,711,583,333 P1 100% additional
384 Establish contingency water supply reserves and sanitation
backup 16,250,000 21,666,667 27,083,333 32,500,000 32,500,000 130,000,000 P3
100% additional
385 Promote management arrangements in urban areas –
provide incentives for small scale providers 2,708,333 3,250,000 4,333,333
3,250,000 2,708,333 16,250,000 P2 100% additional
386 Ensure smooth transfer of devolved functions of rural water
supply and sanitation services 1,083,333 2,166,667 3,791,667 5,416,667 1,083,333
13,541,667 P3 100% additional
systems 130,000,000 270,833,333 452,833,333 396,500,000 227,500,000
1,477,666,667 P1 100% additional
162,500,000 390,000,000 390,000,000 97,500,000 1,126,666,667 P1 100% additional
SUB THEME 3 TOTAL 526,933,333 1,583,400,000 3,329,245,833 3,461,195,833
1,166,750,000 10,067,525,000
Technology
389 Equip the Department of Meteorological Services with
modern weather monitoring and forecasting equipment 13,000,000 1,181,818
1,181,818 1,181,818 1,181,818 17,727,273 P2
390 Equip DAs with ICT services for collection and
dissemination of environmental, disaster warning info 13,000,000 13,000,000
13,000,000 13,000,000 13,000,000 65,000,000 P2
391 Establish a wide area network for all organizations involved
in disaster management 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
25,000,000 P3
392 Provide radios to communities to be used for transmitting
early warning messages 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
10,000,000 P3
393 Establish communication link between DA and the
Department of Poverty and Disaster Management 196,560,000 79,418,182 72,198,347
65,634,861 59,668,055 473,479,445 P2
P1
network (GWAN) 208,000,000 208,000,000 208,000,000 208,000,000 208,000,000
1,040,000,000 P1
396
Encourage collaboration between local and international
educational institutions to facilitate educational exchange
and the promotion of ICT education and training
26,000,000 26,000,000 26,000,000 26,000,000 26,000,000 130,000,000 P3
398 Promote development of a competitive value-added
services sector through ICT 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000
39,000,000 P2
399
Support the development of an innovative local industry for
the manufacture, assembling, repair and maintenance of
ICT products for domestic and export markets
2,600,000 2,600,000 2,600,000 2,600,000 2,600,000 13,000,000 P2
400 Achieve universal basic ICT literacy and improve the level
of ICT literacy in the country 39,000,000 39,000,000 39,000,000 39,000,000
39,000,000 195,000,000 P2
401
facilitate business and administrative processes to increase
productivity and economic growth
65,000,000 65,000,000 65,000,000 65,000,000 65,000,000 325,000,000 P1
402
Promote active participation of all Malawians including
women, youth and persons with disabilities in developing
the information society
13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 65,000,000 P2
9,650,000 9,650,000 48,250,000 P1
Telecommunications
404 Continue liberalization of telecommunications sector 6,500,000 6,500,000
6,500,000 6,500,000 6,500,000 32,500,000 P2
406 Provision of model telecentres 26,000,000 26,000,000 26,000,000 26,000,000
26,000,000 130,000,000 P2
P1
408 Strengthen the regulatory body (MACRA) 1,846,000 1,846,000 1,846,000
1,846,000 1,846,000 9,230,000 P2F Fully funded
409 Facilitate research on issues of self regulation 1,200,000 1,200,000
1,200,000 1,200,000 1,200,000 6,000,000 P2
Broadcasting
13,000,000 13,000,000 65,000,000 P1
26,000,000 26,000,000 130,000,000 P1
412 Human capacity building through training 10,000,000 10,000,000 10,000,000
10,000,000 10,000,000 50,000,000 P2
413 Promotion of private sector participation in broadcasting 1,300,000
1,300,000 1,300,000 1,300,000 1,300,000 6,500,000 P3
414 Rehabilitate and computerise the existing TV and radio
stations 26,000,000 26,000,000 26,000,000 26,000,000 26,000,000 130,000,000 P3
SUB THEME 4 TOTAL 675,816,000 520,856,000 513,636,165 507,072,679 501,105,874
2,718,486,718
Development
Technology 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
416
Establish the National Science and Technology
Commission to coordinate technology research,
development, dissemination, evaluation and utilization
0 10,000,000 0 0 0 10,000,000 P3 100% additional
25,000,000 25,000,000 25,000,000 25,000,000 125,000,000 P1 100% additional
200,000 200,000 200,000 14,600,000 P1 100% additional
15,000,000 15,000,000 10,000,000 70,000,000 P1 100% additional
420 Design and implement STI capacity building programs to
produce S&T expertise 15,000,000 15,000,000 15,000,000 2,000,000 2,000,000
49,000,000 P2 100% additional
421 Promote recruitment and retention of qualified S&T experts 15,000,000
10,000,000 5,000,000 0 0 30,000,000 P2 100% additional
424 Promote innovative schemes and culture 5,000,000 5,000,000 5,000,000
5,000,000 0 20,000,000 P2 100% additional
425 Identify and transfer competitive technologies 10,000,000 10,000,000
10,000,000 0 0 30,000,000 P2 100% additional
426 Establish financing mechanism that supports
commercialisation of technologies 1,000,000 0 0 0 0 1,000,000 P2 100% additional
428 Promote utilization and development of beneficial
indigenous technology 5,000,000 10,000,000 10,000,000 5,000,000 5,000,000
35,000,000 P2 100% additional
P1 100% additional
430 Mainstreaming of S&T in Government and private sector
operations 3,000,000 2,500,000 2,500,000 2,000,000 0 10,000,000 P2 100%
additional
431 Establish and update a data bank on STI 5,000,000 0 0 0 0 5,000,000 P3 100%
additional
5,000,000 5,000,000 5,000,000 25,000,000 P1 100% additional
433 Promote gender equity in STI activities 5,000,000 0 0 0 0 5,000,000 P2 100%
additional
434 Strengthen technology information services 35,000,000 35,000,000 0 0 0
70,000,000 P2 100% additional
435 Strengthening of Malawi industrial research and technology
development centre 20,000,000 20,000,000 40,000,000 P1 100% additional
SUB THEME 5 TOTAL 1,182,000,000 1,173,500,000 1,092,700,000 1,059,200,000
1,047,200,000 5,554,600,000
71,579,985,134 364,437,654,578
436 Improve financial management systems and skills to
operate them, MoF and AGD 130,000,000 195,000,000 130,000,000 65,000,000
97,500,000 617,500,000 P1F
This item has been budget for and supported by
donors. MoF does not consider this to be
additional
437 Enforce adherence of line ministries and parastatals to
Public and Finance Management Act 650,000 650,000 650,000 650,000 650,000
3,250,000 P1F
This is a small item but important nonetheless.
Implementation will not require significant
additional resources and will be covered under
existing resource provision
438 Negotiate multilateral debt write-downs 650,000 650,000 650,000 1,950,000
P2F This is an existing activity and will not require
additional resources
100% additional
440 Receive better donor aid assistance projections and
improve funding flows 6,500,000 6,500,000 3,250,000 1,625,000 1,625,000
19,500,000 P2F Donors have funded consultants to develop data
base for MoF
441
Strengthen the capacity of Debt and Aid Management
Division to better co-ordinate donors and manage aid
inflows
13,000,000 13,000,000 13,000,000 6,500,000 6,500,000 52,000,000 P3F This is
already budgeted for under donor project
and is not therefore considered additional by MoF
442 Negotiate with donors an action plan for harmonization,
alignment and better aid coordination 3,250,000 65,000,000 48,750,000 36,562,500
27,421,875 180,984,375 P3F Cost will be covered by donors
443
administration
9,750,000 9,750,000 9,750,000 9,750,000 9,750,000 48,750,000 P1 100% additional
SUB THEME 1 TOTAL 165,100,000 291,850,000 207,350,000 121,387,500 144,746,875
930,434,375
444
transparent appointment and promotion of personnel based
on merit and performance
158,010,924 158,010,924 142,209,832 127,988,848 115,189,964 701,410,491 P1 100%
additional
445 Implement pay reforms, address recruitment and retention
problems, non-salary incentives 16,133,358 16,133,358 14,520,022 13,068,020
11,761,218 71,615,976 P2
446
Control size and cost of public sector and focuses them on
its priority areas, including donor funding for the public
sector
10,000,000 10,000,000 11,000,000 12,100,000 13,310,000 56,410,000 P2
447 Enforce human resource policies and systems 650,000 650,000 650,000 650,000
650,000 3,250,000 P3
448
Implement the monitoring and evaluation roadmap
(includes coordination of donors, national statistical plan,
etc.)
3,768,975 3,768,975 4,145,873 4,560,460 5,016,506 21,260,789 P3
449 Enforce greater clarity on separation of roles between
Ministers and PSs
450
Develop and implement national anti-corruption strategy
addressing root causes of corruption and involving public
and private sectors
15,000,000 15,750,000 16,537,500 17,364,375 18,232,594 82,884,469 P2 100%
additional
451 Strengthen the media capacity through training and access
to and distribution of public inform Min of Information
452 Establish community information centres Min of Information
453 Promote professionalism of media that delivers politically
impartial news coverage Min of Information
454 Enact access to information legislation to allow media

access to public information Min of Information
455 Enact public service broadcast legislation Min of Information
456 Select legislators with relevant skills and knowledge into
457 Provide adequate financial resources for functioning of the
458 Provide national registration and identification to voting age
persons 2,000,000,000 1,000,000,000 1,000,000,000 500,000,000 500,000,000
459 Provide equal access to public media facilities Min of Information
SUB THEME 2 TOTAL 2,203,563,257 1,204,313,257 1,189,063,227 675,731,703
664,160,281 5,936,831,725
17,062,500 17,062,500 289,914,040 P1
2010/11
58,500,000 58,500,000 351,000,000 P1
2010/11
462 Build institutional capacity at the districts. 32,760,000 143,039,000
23,400,000 31,200,000 31,200,000 261,599,000 P2
2010/11
463
Strengthen operational links between decentralization
policy and national policy frameworks and the role in policy
making
464 Train communities for active participation in development
activities at the district. MOL
465 Define clear roles of all groups of stakeholders at the
district.
SUB THEME 3 TOTAL 292,136,000 290,037,540 106,814,500 106,762,500 106,762,500
902,513,040
466
Undertake periodic review and reform of laws and
procedures in light of constitutional provisions and
applicable international law
467 Acknowledge customary laws and practices that are not in
conflict with principles of human rights and the constitution 4,074,000
4,074,000 4,074,000 4,070,113 4,073,200 20,365,313 P2
468 Review and simplify legal language to ensure a
comprehensible justice system 6,080,000 3,619,048 3,619,048 3,619,048 3,619,048
20,556,190 P2
469 Strengthen and streamline the legislative drafting process
470 Enact and implement legislation to ensure duty bearers
enforce their functions and powers professionally
49,821,800 49,821,801 266,034,000 P1 100% additional
472 Appoint judges based on merit 0 0 0 0 0 0 P3
473 Continue the Civil Service Reform Programme to retain
legal professionals in the civil service
474 Increase number of court centres close to police stations

and main trading centres 88,200,000 51,857,143 51,349,206 51,046,863 50,758,917
293,212,130 P2
100% additional. Each district and rural court
centre estimated at MK30 million. Estimate based
on 6 new courts pa. Two court buildings, staff
quarters and furnishing
475 Review primary and informal justice initiatives
476
Design policies and mechanisms for consultation and
cooperation between formal and informal justice sector
players and to improve enhanced accountability of primary
justice agencies to the public
electronic
database
478 Provide primary justice and dispute resolution training for
traditional leaders
479 Design a programme for reviving traditional courts including
an appropriate training element 30,000,000 28,571,429 18,140,590 17,276,752
16,454,049 110,442,820 P2
480 Review forms of alternative dispute resolution and identify
the most appropriate forms 10,000,000 0 0 12,957,564 0 22,957,564 P3
481
10,720,000 10,720,000 10,720,000 10,720,000 10,720,000 53,600,000 P1 100%
additional
483 Design inter-agency approaches to prevention of crime
484 Recruit and train more police to reduce high police-
population ratio
485 Recruit and train police personnel – both in traditional
training and specialized areas including forensic support
486
Develop partnerships between the police and the local
communities and local accountability of the police to the
community, including civic education
487 Provide safe, secure and appropriately designed building
stock
24,000,000 24,000,000 123,000,000 P1
100% additional. Covers 12 court centres pa > 60
in total. Estimated at MK10 million per court.
489 Encourage community ownership of installations and
community participation in maintenance
490 Modify training programs to direct toward rehabilitation of
prisoners
6,000,000 30,000,000 P1 100% additional
492 Develop linkages with other programs for ex- convicts to be
part of the productive sector
493
Control proliferation of firearms (with NGOs to set up
national focal point to deal with issues of illicit trafficking and
firearms)
494 Conduct drug control programs (awareness raising through
faith based organizations)
495 Amend the Immigration Act
496 Introduce national registration and identification system
497 Establish joint programs with companies and communities
to tackle issues of anti-vandalism
498 Integration of police protection into industrial site plans

499 Educate Malawian establishments on the benefits for risk
management for protection of assets
500 Develop Private Security Policy and Act that provides
standards for inspection of private security firms
501 Generate funding support from Government and
development partners
502 Develop a harmonized approach to budget formulation,
presentation, allocation, distribution and accountability
503 Allocate resources between sector institutions effectively to
achieve the sector mission
504 Review, and where appropriate reform, business and
commercial-related laws
construction of
new Blantyre Court
4,074,000 4,074,000 4,074,000 20,370,000 P1
507 Design and implement a strategy to address the
administration and distribution of deceased estates
SUB THEME 4 TOTAL 1,022,894,800 197,023,133 182,682,997 192,224,516 177,748,040
1,772,573,486
1,093,417,696 9,542,352,626
120,096,214,772 118,577,840,865 606,565,304,358
56,536,730,335 55,096,214,772 53,577,840,865 281,565,304,358
14.9%
SUMMARY 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL
53,577,840,865 281,565,304,358
133,307,529,001 139,306,368,001 657,766,534,003
Real GDP 307,800,000,000 325,652,400,000 344,865,891,001 360,384,856,001
376,602,175,000 1,715,305,322,002
% of GDP 19.0% 17.8% 16.4% 15.3% 14.2% 16.4%
Terms of Reference
A1
February 2006
Revised Terms of Reference
Revised Terms of Reference
A1
Malawi Growth and Development Strategy
Based on discussions around the Terms of Reference (version of 24/11/05), this

note
breaks down the ToRs into: the current contract focussing on costing the MGDS;
and
possible follow up activities, for which a new contract would be required:
Costing the MGDS (current contract)
1. Key sectors to be jointly identified for the costing exercise, based on the
largest budgetary allocations and MGDS priorities; and
2. Determine the cost to the Government of implementing the MGDS in these
sectors, entailing estimating the cost of implementing the priority focus
actions to achieve the medium term expected outcomes. The cost estimates
will form part of input in the process of prioritising the strategies. This will
be
an iterative process of costing, priority setting and target setting.
Ultimately,
the cost estimates will also help the government in mobilizing resources for
the implementation of the strategy.
Possible Follow up Activities (new contract)
1. Further refinement of the costings undertaken in Phase 1 and expansion of

the costings to other MGDS sectors;
2. Assist in developing a macro-fiscal framework based upon the IMF’s PRGF
and subsequently, develop a model for projecting resource envelopes for
each of the years during which the strategy will be implemented;
3. Develop three resource envelope scenarios: 1) a base case based on the
PRGF projections; 2) a more pessimistic scenario; and 3) a more optimistic
projection;
4. Review the methodology for costing the MPRS and the MGDS and develop
guidelines for the costing approach taken, also develop detailed guidelines
for revising the costs when the main underlying assumptions change; and
5. Translate the MGDS costing in budgetary terms, taking into account the
macro-fiscal constraint.
A report will be submitted two weeks after the ended project
A1-1
February 2006
TERMS OF REFERENCE
Phase Two: Malawi Growth and Development Strategy
Macro-framework and Costing of MGDS
A. Background
The Government of Malawi is in the process of developing the Malawi Growth and
Development Strategy. The strategy defines comprehensively the actions that the
government intends to undertake in the medium term (2006 – 2011) in order to
achieve
its growth and development objectives. Development of the strategy is being
guided by a
Steering Committee. The Steering Committee is comprised of representatives from
Ministry of Finance, Ministry of Economic Planning and Development, the Reserve
Bank, Ministry of Trade and Private Sector Development, and Malawi Investment
Promotion Agency (MIPA). The committee reports directly to the Economic
Management Subcommittee of the Cabinet. The Steering Committee has in turn
instituted a Technical Working Group that is responsible for the actual
formulation of the
strategy.
The formulation of the strategy is in two phases. The first phase focused on
identifying
the government’s long term goals and the medium term objectives to attain those
goals.
Constraints and strategies for achieving the medium-term objectives were then
identified.
To this end, the team consulted various existing strategy documents such as the
Malawi
Economic Growth Strategy, the Malawi Poverty Reduction Strategy, and other
strategies;
sector policy documents, MPRS progress reports and reports from other existing
analytical pieces of work. The team also held consultations with line
ministries, civil
society, private sector and donors on the longer-term goals, medium term
outcomes, key
constraints, and focus actions. The framework for consultations was a matrix
indicating
the long-term goals, intermediate objectives, constraints, and strategies for
addressing the
constraints.
Phase II will build on and deepen the work of Phase I. This includes (a) filling
gaps in
the strategy matrix where they still exist (b) identifying target variables
(indicators) (c)
establishing their baseline values (d) setting their target values (e)
estimating the cost of
reaching the targets set (f) prioritization of strategies (g) drafting of the
strategy
document. The Steering Committee has established a Phase II Working Group to
work
with the Technical Working Group in most of the work lined up for phase two. The
Phase II Working Group will comprise: Ministry of Finance, Monitoring and
Evaluation
Department in the Ministry of Economic Planning and Development , The Reserve
Bank,
Members of the MGDS Technical Working Group, and the IMF. These terms of
reference will guide their work.
B. Expected Outputs of the Phase II Working Group
The Phase II Working Group is expected to work closely with the Steering
Committee to
ensure that the work is consistent with the strategy process and deepens the
strategy. It is
expected that this work will feed into the strategy and meet the end December
timeline.
The Working Group will identify consultants to assist in undertaking the
following tasks:
i) Macroeconomic projections: Develop a macro-framework based upon the IMF

PRGF. The macro-economic framework will define the values that various macro-
variables are projected to take over the strategy period. These macro values
will be input
into the model for projecting the resource envelopes for each of the years
during which
the strategy will be implemented. In turn, the resource envelopes, together with
the
strategy costings will be useful input into the process of strategy
prioritization.
ii) Indicators and Targets: Identify monitoring indicators for the MGDS,
establish their
baseline values, and then set their target values. The indicators can be
qualitative and
quantitative, but where feasible should be SMART (i.e. specific, measurable,
achievable,
relevant, and time bound). These indicators and targets will be used to monitor
and
evaluate implementation and performance of the MGDS.
iii) Costing of the MGDS: Determine the cost of implementing the MGDS. This will
entail estimating the cost of implementing the priority focus actions to achieve
the
medium term expected outcomes. The cost estimates will form part of input in the
process of prioritizing the strategies. This will be an iterative process of
costing, priority
setting and target setting. Ultimately, the cost estimates will also help the
government in
mobilizing resources for the implementation of the strategy.
The Working Group will not only determine the cost of implementing the strategy,
but
will also define the role that the costings are supposed to play in the budget
process. In
particular, the Working Group will be expected to develop clear guidelines for
the
alignment of the budget to the MGDS. This will entail (a) reviewing the current
system of
translating MPRS strategies into budgetary activities, (b) developing guidelines
on how
the MGDS costings are expected to provide input into the budget process, and (c)
developing guidelines for assessing the extent to which the budget is aligned to
the
MGDS;
iv) Prioritization of the MGDS: Prioritize the long-term goals, the intermediate
objectives, and the strategies for achieve the objectives. The process of
determining the
priorities will benefit from projections of the resource envelope, the costing
exercise, and
from more robust analyses of consequences of medium- and long-run strategies on
other
components of the economy.1
1 In particular, the Development Economics -- Prospects Group (DEPG) of the

World Bank is planning to
design a dynamic and recursive computable general equilibrium (CGE) model for
Malawi that will be used
to analyse the impact of alternative strategies on the macroeconomy The Working
Group is expected to
consider the findings of the analyses in determining the strategy priorities.
v) Scenarios: Develop scenarios of what the priorities and targets would be
given additional resources.
C. Duration of the Work

It is expected that this work will largely be accomplished by 22nd December
2005, though
further refinement and development of some elements may continues into 2006.
CONSULTANCY DETAILS
1.0 Objective of the Consultancy

The consultancy aims at projecting the macro-framework within which the strategy
will
be implemented, and determining how much it will cost to implement the MGDS.
This
will entail estimating the cost of reaching the various indicators and targets
to be set in
the strategy (or alternatively, estimating the cost of undertaking the various
actions
required to reach those targets). The cost estimates will form part of input in
the process
of prioritizing the strategies. Ultimately, the cost estimates will also help
the government
in mobilizing resources for the implementation of the strategy.
2.0 Specific Tasks

In carrying out the assignment, the consultant is expected to undertake the
following
specific tasks. The major emphasis of the consultancy input will be the costing
of the
MGDS, rather than on developing and projecting the macroeconomic framework.
i) Assist in developing a macro-framework based upon the IMF’s PRGF and

subsequently, develop a model for projecting resource envelopes for each of the
years
during which the strategy will be implemented;
ii) Review the methodology used in costing the MPRSP. After reviewing the
methodology, the consultant will need to decide whether or not to use the same
methodology in costing the MGDS or whether to use a completely different
approach.2
2 The consultant is advised to consider complementing whatever methodology is

adopted with the World
Bank’s friendly and excel based simulation tool for costing known as Simulation
for Social Indicators and
Poverty (SimSIP) The tool has been developed by the Poverty Group of the World
Bank and is useful for
costing targets relating to education, health, infrastructure, and poverty.
Any decision made will have to be explained to the Working Group before the
actual
costing begins. The presentation of the adopted methodology to the Working Group
will
need to include an outline of its limitations;
iii) Outline all the main assumptions made in arriving at the costings;
iv) Develop detailed and clear guidelines for revising the costs when the main
underlying
assumptions change;
v) Define the role that the costings are supposed to play in the budget process.
In
particular, develop clear guidelines for the alignment of the budget to the
MGDS. This
will entail (a) reviewing the current system of translating MPRS strategies into
budgetary
activities, (b) developing guidelines on how the MGDS costings are expected to
provide
input into the budget process,3 and (c) developing guidelines for assessing the
extent to
which the budget is aligned to the MGDS;
vi) Recommend, whether the MGDS costings should be presented as costs for
achieving
certain targets or as costs for implementing the strategies/actions for
achieving those
targets, or in terms of both;
vii) Advise on how the Working Group should respond to the proposal by the
UNDP’s
Millennium Project that the exercise of costing the MGDS be linked to that of
costing the
MDGs;
viii) Propose ways in which capacity can be developed in government to carry out
this
type of work in-house.
3.0 Outputs
The consultant is expected to produce a report with costing, guidelines, and
recommendations in line with these terms of reference.
4.0 Reporting Relationship and Collaboration

The consultant will report to the chairperson of the Phase II MGDS Working
Group. The
consultant is also expected to collaborate with another consultant who will be
engaged to
assist with the setting of targets and prioritization. In particular, there will
be
collaboration in advising the Working Group on how the various tasks fit
together.
5.0 Experience/Qualifications
3 In developing these guidelines, the consultant will also need to make
recommendations on how, on top of
the MGDS costings, other sources of input into the budget, such as Public
Expenditure Reviews will have
to be dealt with.
The consultant must be a holder of at least a masters degree in a relevant field
and will
have demonstrable experience in costing projects. Experience in costing country
strategies will be an added advantage.
6.0 Timing and duration of the consultancy

It is estimated that the consultancy will be for a total number of 30 days.
The Phase II Working Group is scheduled to present its progress and findings at
a high
level meeting in Malawi on 22 December. Accordingly an early start to the
consultancy
support is required, though given the time constraints some elements of the work
may run
into early 2006.
In order to achieve the maximum contribution prior to 22 December, consideration

will
be given to engaging a small team of consultants (two or three persons) if a
single
individual cannot be identified to undertake all the work in the time required.

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Approach and Methodology

Links to the Budget and Resource Ceilings 7

Abbreviations and Acronyms

2 Approach and Methodology

3 Public expenditure is a core government activity, which facilitates the

4 This interrelationship requires effective linkages between public policy,

5 Costing and prioritisation is necessary to reconcile needs with resource

6 Fitting policy based activities to a hard budget constraint requires public

9 A step-wise approach has been taken to the costing and prioritisation of

10 The above approach has been applied consistently by stakeholders to the

1) the aggregate resource envelope is determined1/;

2) discretionary expenditure (wages and salaries; debt service; pensions and

3) the resource requirement to service on-going public sector programmes and

14 While this approach to the costing exercise has facilitated prioritisation

15 The tables presented in Section 5 show the detailed costings:

1/ Although in itself this clearly cannot be expected to provide additional

Links to the Budget and Resource Ceilings

25 In order to achieve an implementable plan, the MGDS must be closely linked

26 Ideally, this estimation of available resources should be an activity running

28 The imposition of these ceilings on MGDS costed activities will necessitate

Linkage with the PSIP (Public Sector Investment Programme)

29 The Government of Malawi’s PSIP is a crucial element of the budget

Recurrent/Capital Expenditure Balance

Synchronisation with the Budget Cycle

Expenditure Codes and Budget Classification

33 Once performance targets are determined as part of the Monitoring and

34 This costing and prioritisation exercise is part of a broader initiative to

35 Costing and prioritisation is part of the necessary process of reconciling

36 A crucial next step in this process is therefore the determination of the

• determination of the aggregate resource envelope for 2006/07 and forward

Table 2 All P1s

Table 3 all Priorities Additional

Table 4 all Activities

Exchange rate: Malawi Kwacha to USD 130

Exchange rate: Malawi Kwacha to USD 130

Exchange rate: Malawi Kwacha to USD 130

Exchange rate: Malawi Kwacha to USD 130

Exchange rate: Malawi Kwacha to USD 130

Exchange rate: Malawi Kwacha to USD 130

Exchange rate: Malawi Kwacha to USD 130

Exchange rate: Malawi Kwacha to USD 130

Exchange rate: Malawi Kwacha to USD 130

Exchange rate: Malawi Kwacha to USD 130

Exchange rate: Malawi Kwacha to USD 130

Exchange rate: Malawi Kwacha to USD 130

Exchange rate: Malawi Kwacha to USD 130

2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL Priority Observations

77 Reforestation programme 955,900,000 1,044,600,000 1,007,100,000 955,900,000

217 Increase student intake into medical/health training

248 Promote and support HIV protective interventions

407 Procurement and installation of modern

SUB THEME 3 Decentralisation

% of total expenditure 32.3% 31.3% 30.8% 30.3% 28.0% 30.5%

2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL Priority Observations

20 Increase market access for apparel in international

50 Rehabilitation of existing irrigation structures 78,080,000 78,080,000

68 Promote fish production from fish farming 83,700,000 98,200,000 42,500,000

Environmental Education and Awareness

113 Design, develop and implement Private Sector