Rédaction Africa Links 24 with Taonga Sabola
Published on 2024-03-25 06:43:58
Government plans to increase the K105 billion loan it borrowed from National Bank of Malawi and NBS Bank for the Salima-Lilongwe Water Project by an additional K70 billion in order to boost its equity contribution in the project, as reported by The Daily Times. This decision is outlined in the NBS Bank plc and National Bank of Malawi plc (Lake Malawi Water Supply Project) Loan (Authorisation) Amendment Bill of 2024, which is set to be presented during the current session of Parliament.
The bill, endorsed by Attorney General Thabo Chakaka Nyirenda, aims to amend the NBS Bank plc and National Bank of Malawi plc (Lake Malawi Water Supply Project) Loan (Authorisation) Act (No. 20 of 2023) to incorporate CDH Investment Bank Limited as one of the fund lenders for the Lake Malawi Water Supply Project. Additionally, the bill seeks to raise the originally approved K105 billion sum to offset the recent currency re-adjustment, as it falls short of the $100 million equity contribution from the government to the project.
Upon approval, the bill would elevate the government’s equity contribution to K175.1 billion at the prevailing exchange rate, constituting 30 percent of the total project cost. The contract for the project was awarded to Khato Civils and South Zambezi Joint Venture.
In a related development, Water and Sanitation Minister Abida Mia informed Parliament last month that the implementation of the K500 billion Lilongwe-Salima Water Project would resume on March 1, 2024. Mia assured that government has secured funds for the project, which is slated to be completed within 24 months.
“We have sourced funds from local banks and as we proceed, it is a viable project. We anticipate significant interest as we have already received expressions of interest from potential investors,” Mia stated in response to a query from Lilongwe City Centre Member of Parliament Alfred Jiya.
Mia affirmed that all necessary processes, including environmental assessments, have been conducted before initiating the project. She emphasized the importance of understanding the environmental implications of such projects before commencement.
Once finalized, the project is expected to benefit residents along the Salima-Lilongwe corridor, providing access to clean water and supporting irrigation for local farmers. The project had faced a seven-year hiatus primarily due to financial constraints but aims to leverage water resources from Lake Malawi in Salima to cater to the water needs of residents in Salima, Dowa, and Lilongwe.
Read the original article on The Times
