Parliament has approved a Bill which will allow the Southern Region Water Board (SRWB) to borrow €26.5 million (about K25 billion) from European Investment Bank (EIB) for Water Supply and Sanitation Programme in the Southern Region.

According to Minister of Finance Felix Mlusu, the borrowed money will, among other areas, be used for water projects in Mangochi and Liwonde Municipalities.

“This money will be used to bring water to the towns of Liwonde and Balaka but also to support the water project in Mangochi.

“In addition to that, it is also to enable us to settle up a power generation plant in Zomba which will be generating about three quarters of megawatt to support SRWB in terms of the energy which they require to pump water for their operations,” said Mlusu.

He added that the concession loan will be paid back at an interest rate of 1.1% for a 20-year repayment period.

“This is a very soft loan what we call concession loan, the interest rate is 1.1% and there is no facilitation fee to that loan and it is for repayment period of over 20 years with five-year grace period.

“So it’s actually very good loan for us at those terms that have been offered to us,” said Mlusu.

Earlier, upon appearing the parliamentary committee on natural resources and climate change, acting SRWB Chief Executive Officer (CEO) appealed Duncan Chambamba appealed to the lawmakers to back the passing of the Bill.