Government says all is set for commissioning of the long-delayed Lilongwe-Salima water project in January next year.
Principal Secretary in the Ministry of Water and Sanitation Elias Chimulambe disclosed the development in Lilongwe during a roundtable with the Parliamentary Committee on Natural Resources and Climate Change alongside the project’s contractor – Khato Civils.
According to Chimulambe, funds have been mobilised for commencement of the project and that the contractor has already signed contracting agreement.
Chimulambe said: “We have confirmed our preparedness to start the project, now we have all what it takes to start the project, which have the finances in place, the technical team is there, and our contractor has already signed the contract agreements and terms.”
He added that government is committed to inject 30 percent of the entire project estimated cost, which is $315 million, and the remaining 70 percent will be secured from investors.
“According to the arrangement in terms of financing for this project, government is supposed to secure 30 percent and 70 percent will come from investors. So, government has secured 30 percent, and we start the project with 30 percent and the investors come.
“We have a proper financing mechanism to make sure that the project is financed, so come January we will start with whatever is available and continue with the arrangement that we have put in place based on the financing agreement that we have had,” he said.
Earlier this year, Parliament adopted a NBS Bank Plc and National Bank of Malawi Plc (Lake Malawi water Supply Project) Loan (Authorisation) Bill, 2023.
The Bill was aimed at authorising the Government, of the one part to borrow from NBS Bank Plc as lead arranger, lender and agent, National Bank of Malawi et al as Lender, of the other part, for a loan not exceeding MK105, 000,000,000.
The funds are aimed at financing the abstraction and treatment of water from Lake Malawi at Lifuwu in Salima and transportation of the treated water through a 112 kilometre transmission pipeline to Lilongwe City under the Project.
Whilst expressing doubt on the 70 percent funding availability, the Committee says the commencement of the project is an exciting development.
“I think you will remember that the project started in 2016, as we speak, this is 2023 is about seven years since it started. Now that we are taught, they have agreed that the starting in January as a committee, very happy because we have always supported this project all along.
“We have told the PS that we are greatly concerned with the level of funding at this stage. Yes, they have signed a contract with Khato Civils to start the project in January, but as we speak, only 30 percent of the total funding has been secured therefore, we are not sure whether indeed it is seven 70 percent funding will be secured,” said George Million, the committee’s vice chairperson.
The government of Malawi has selected the Lake Malawi water Supply Project as a flagship project for implementation to cover the water supply gap in the city of Lilongwe and the surrounding areas.
The Project has been designed to meet the water supply requirements for Lilongwe City, surrounding areas and town centres along the M14 Lilongwe – Salima Road (Salima Town, Mvera, Dowa Turn Off and Chezi).
