Parliament has authorised government to borrow about K140 billion from the International Development Association of the World Bank for the Second Phase of the Shire Valley Transformation Programme.

According to Minister of Finance Sosten Gwengwe, the main objective of the Project is to develop irrigated commercial agriculture and strengthen the management of natural resources in the targeted areas in Chikwawa and Nsanje districts.

He said: “We are developing a biggest irrigation scheme in the country and we are now moving into the second phase of that project.

We must get serious with food production, not only for consumption but also for exports so the issue about irrigation schemes and mega farms.”

Gwengwe said the loan is payable within a 32-year period at a charge of 0.75 percent rate.

“Given the highest interest rates around the world as we speak you see that getting a loan which is at 0.75 percent repayable over 32 years is really like free money.

But if we are very serious as Malawians, it will actually be a springboard for us to launch into serious agriculture for exports,” he explained.

The second phase of the project is, among other things, aimed at developing the irrigation infrastructure and providing related services such as – constructing the main canal through Lengwe National Park.

The Shire Valley Transformation Programme is a multi-phased project covering construction of a reservoir dam, a main canal, secondary canals, tertiary canals and farmland development to promote commercial agriculture in the two aforementioned districts.