Donors protest Salima-Lilongwe water project: World Bank withholds K60bn to Malawi

Malawi government has said World Bank has not released the K60 billion budget support from the World Bank, which was expected in August,  has not be released, as the  donors had  raised some issues including the decision to proceed with the Salima-Lilongwe water project – whose contract was given to Khato Civils Limited that unveiled the multibillion Kwacha project in 2016.

Botolo: World Bank has not released K60 budgetary support

Secretary to Treasury Ben Botolo told Budget and Finance Committee of Parliament in Lilongwe on Wednesday that World Bank has cited the decision not to disburse the budget support to be linked to the controversies surrounding the Salima-Lilongwe Water Supply Project whose contract was allegedly granted without following procurement and procedures.

Botolo said the donors have, therefore, pressured the World Bank “not to proceed with the disbursement of the budget support.”

The World Bank was expected to provide K60 billion in budgetary support of the K209 billion in grants.

The development partners and some civil society activist have been pushing for the halting of the project following lack of an environment impact assessment and feasibility study before Khato of Malawian billionaire Simbi Phiri was awarded a contract.

Khato Civils Limited  won the $500 million (approximately K360 billion) contract on  restricted tender process  where six civil engineering companies participated and these were Khato, Sinohydro Corporation, PW Engineering, Mota-Engil, China Railway and CMC di Ravenna.

The Salima-Lilongwe water project has no funding allocated to it in the financial plan for 2018/19.

Finance Minister Goodall Gondwe said the financing committee was taking time to ensure due diligence was done.

“Once this is done, we will seek the necessary waivers from the International Monetary Fund,” he said.

Khato Civils, is a construction and engineering company headquartered in South Africa and owned by a billionaire Simbi Phiri businessman whose father is from Malawi,

The company already unveiled to the media multi-million kwacha machinery for the construction of the pipeline from Lake Malawi in Salima to Lilongwe to ease water problems in Lilongwe, disclosing that $13 million (K9.8 billion) had already been invested in the project.

President Peter Mutharika is on record to have hit at development partners for allegedly interfering in the project’s implementation.

But Mutharika did not name the development partners allegedly pushing for the halting of the project whose setbacks have included lack of an environmental and social impact assessment (Esia) and feasibility study before the contract was awarded to Khato Civils Limited.

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mediaz
Guest
mediaz

Good kapumeni ndinu amend mukusokoneza zinthu,ndodo mpaka my offesi vomelezani kuti mwakula kachezeni ndi zizukulu.Iweso botolo usamatinamiza chonsecho ukudziwapo kanthu apumbwa inu,,,,,,kkkk

mtete
Guest
mtete

The thought of APM and his DPP cronies benefiting from this project sickness me.

May I appeal to Lilongwe Water Board to ensure areas where diplomas reside are water shed (or is it load shed) for longer periods should the situation get worse.

Holly Tit
Guest
Holly Tit

Paja some very dull Judge said that an assessment was not required before awarding the contract.

King Mfumu
Guest
King Mfumu

It seems like this Country’s enemies are resident at Capital Hill. The Secretary to the Treasury is being economical with the truth, if he insists that he is surprised by the withholding of funding by the World Bank.

When will this nightmare, end?

Ndatopa
Guest
Ndatopa

Pumping water uphill is as retarded as it gets!!! Well done World Bank and our development partners !

Upumbwa Wa Achaponda
Guest
Upumbwa Wa Achaponda

Well done development partners. Don’t give them that money. It will all end up in Chaponda and Ben Phiri’s pockets. Let that project set off after May elections and only on condition that either MCP or UTM are in power.

Releasing that money at this time will give DPP a chance to toy around with it for campaign. All the people of Malawi will see thereafter is a mare foundation stone and probably if lucky, 100 metres of water pipes at Kaphatenga.

Isn’t that the case at Nsanje Port?

Parallel Market
Guest
Parallel Market

This is a project of national importance. Malawi govt should proceed with Lilongwe – Salima Project for the benefit of malawians and not world bank. Gone are the days when someone can be telling us what to do in our homeland. Malawi is not a colony of anyone. Malawi Government is responsible to Malawi and malawians period. Let the Government seek funding from other countries like Iran, North Korea, China, Russia, Turkey, etc.

Holly Tit
Guest
Holly Tit

Hehehhheh. Muli nazo ndalama zopangira the project? Iran, Russia? China? Those are loans my friend. Not gifts. Hahahahaha. Kagwiritseni that money you stole from the police food rations case kkkkkk. As long as you want to keep stealing donor funds you will remain a colony and a slave!!

Make Malawi Great
Guest
Make Malawi Great

Dont support corrupt practices as a matter of fact World Bank give it to one of your trusted partners as US donors do USAID, DFID etc as usual ever these thieves in government especially now that the campaign period is around the corner!!

Mmora Muroma
Guest
Mmora Muroma

This is what, we levelheaded Malawians have been saying all along.
Makani aja apa agwira ntchito?
Procedures should be followed, no short cuts. Now this will take longer than it procedures were followed.
Shupiti makani.

Chilima Sangawine Wagwanayo
Guest
Chilima Sangawine Wagwanayo

A World Bank amafuna contractor akanakhala mzungu ndiye akanapanga release ndalama fast fast. Shire basin is funded by World Bank panopa project ikutha koma pa ground zero. Ndi zomwe amafuna. Thieves!

Holly Tit
Guest
Holly Tit

I don’t think so.

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