Chakwera’s K34bn Saudi Arabia deal sweetens as Parliament passes it: Construction Mangochi-Makanjira road to start
President Lazarus Chakwera’s trip to Saudi Arabia last year is bearing fruits as Parliament, yesterday, passed a bill that authenticates the K34bn deal meant to enhance trade, tourism, and transportation by constructing and rehabilitating the Mangochi-Makanjira road.
It will also increase regional trade opportunities, reduce transportation costs and travel time.
Saudi Arabia, through its Saudi Fund for Development, agreed with President Chakwera last year on a deal to lend K34 billion to Malawi for the Mangochi-Makanjira road however for the deal to start working Parliament was supposed to debate and pass it.
The deal was unanimously passed in Parliament yesterday to the delight of Finance Minister Simplex Chithyola who presented it.
“I can confirm that Parliament has this morning unanimously passed the Saudi Fund for Development (Construction and Rehabilitation of Mangochi-Makanjira Project) loan (authorization and ratification) bill of 2023.
The bill seeks to authorize and ratify the Loan Agreement, dated 9th November, 2023 which I duly signed, on behalf of the Malawi Government, with the Saudi Fund for Development,” he said.
In his remarks while in Saudi Arabia in November, the Malawi leader underlined that the since the beginning of the development cooperation in 2010, the Kingdom of Saudi Arabia has provided about 50 million dollars’ worth of concessional loans, which have gone a long way in cementing the partnership between our two nations.
“For example, it was the Saudi Fund for Development that partnered with us to build a state of the art 300 bed hospital in Phalombe, which is now providing various health services to our people, including ante-natal and neonatal services that were once provided at facilities too far away,” he said.
He added that it was the Saudi Fund for Development that partnered with us to construct 3 Teachers Training Colleges in Malawi with an annual enrolment of about 1,200 teacher trainees.
“It was the Saudi Fund for Development that contributed to the 3 financing of the Thyolo-Makwasa-Bangula road, which has improved connectivity for our farmers. It was the Saudi Fund for Development that supported our efforts at debt restructuring, as discussions between my officials and Kingdom of Saudi Arabia team have commenced in a win-win spirit, and we remain hopeful that through your support we will get a confirmation on debt restructuring assurances,” he said.
Chakwera hailed the Saudi government for the generous decision accept his proposal for the construction of the Makanjira road is a gift that will keep on giving for generations to come.
“As such, it is worthy of special recognition and our Saudi partners are worthy of special thanks. This important transport infrastructure will facilitate intra country trade and regional trade, and usher in a new wave of prosperity for Malawi,” he said.
On his part CEO of the Saudi Fund For Development, Sultan Almarshad, pledged to continue supporting Malawi in future infrastructure development projects.
“We are also in talking terms with the Malawi government in other future projects,” said Almarshad.
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