Malawi gets K113bn financing for M1 Road rehabilitation: Mwanamvekha says project to generate economic benefits
Malawi government, the European Investment Bank (EIB) and the European Union has today signed a financing agreement worth 139 million euros (about K113 billion) for the rehabilitation of the 346 Kilometer stretch along M1 road.
The facility has been described as largest ever loan for investment in Malawi.
Of the 139 million euros or K113 billion, 120 million euros (approximately, K 97.3 billion) is earmarked for rehabilitation works for the Kamuzu International Airport Turn Off to Mzimba Junction sections of the M1 road, 15.5 million euros (about K12.6 billion) is an additional financing the rehabilitate the Kacheche to Chiweta section of the M1 in Rumphi district while 4 million euros (about K3.2 billion) is for a Technical Assistance Agreement for project implementation support to the Road Authority and Roads Fund Administration.
The rehabilitation works are expected to start from Kamuzu International Airport (KIA) Junction via Kasungu, then from Kasungu to Jenda, then from Jenda to Mzimba Junction and finally from Kacheche in to Chiweta in Rumphi district.
Currently, the M1 road is in dilapidated state and is considered as a death trap to motorists.
The rehabilitation works aim to reduce transport costs, cut travel time and facilitate export.
The M1 upgrade is also expected to improve international links to Zambia and enhance access to Dar es Salaam as part of the north-south regional transport corridor, according to Minister of Finance, Economic Planning and Development who signed the facility on behalf of Malawi government at Capital Hill, through a televised signing ceremony.
“By upgrading the road to modern standards, significant improvements in safety for road users are also an expected outcome of the project,” Mwanamvekha said.
Mwanamvekha-who is apparently winning donor confidence since assuming office in June this year- said the road project is crucial for the country because of its high economic importance for national and regional economies.
He said the M1 road provides an important international corridor between Malawi and neighbouring countries.
Said Mwanamvekha: “The bulk of our exports and imports are moved through this corridor. Unfortunately, the road corridor outlived its economic life and had deteriorated overtime. It has been leading to high maintenance and operating costs for users and this had made goods very uncompetitive due to high transport costs.
“As a country we cannot afford to just wait and see, therefore the loan from EIB and the Grant from the EU have come at the right time and will go along way is helping us improve this road corridor.”
According tom the minister, improving road links is crucial for the sustainable economic development of Malawi and the SADC region.
Apart from the direct benefits arising from the improved road condition, Mwanamvekha said the Project will generate a lot of economic benefits through job creation for the people employed to work on the road, the Project will also create demand for various goods and services like construction materials, mining and accommodation just to mention a few.
Speaking at the event, EU ambassador to Malawi Sandra Paesen said upgrading the M1 road will accelerate economic development across the country and provide new opportunities for agriculture.
She said: “We are pleased to provide 43 million euros of grant financing, through the EU Africa Investment Platform, for the project alongside national, European and international partners. This project will serve to enhance Malawi’s connectivity, boost regional trade and ease the movement of goods and people along this north-south corridor, ”.
She said the EU funds will be provided through blending operation whereby EU grant funds are blended with loans from financial institutions.
The EIB loan, represents our largest ever single engagement in Malawi since the start of its operations in 1977.
Over the last 40 years, EIB has helped to improve water supply, agriculture, aviation safety and energy across Malawi.
From the support, a 4 million euros (about K3.2 billion) of the EU grant funding is earmarked for the technical assistance, to support road construction and monitoring once construction is complete.
EIB is the long-term lending institution of the European Union owned by its Member States.
It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
Follow and Subscribe Nyasa TV :
SHONAI,STOP THAT STUPIDITY BEFORE MALAWIANS JUMP ON YOU.WHAT INSTITUTIONS DO YOU MEAN YOU FUCKUP? THE MONIES YOU CLAIM TO BE POURING GO TO MATHANYULA AND HIS RUNNING DOGS. FOR YOUR INFORMATION,YOU ARE BEING USED TO THROW OUR PEOPLE UNDER THE BUS.BY THE WAY,WHICH COUNTRIES ARE SATISFIED WITH AFRICA’S MOST CORRUP REGIME? CAN YOU POINT ONE OR TWO? ARE YOU ONE OF THE LOMWES WHO ARE MUTHALIKA’S CHOLA BOYS? SHONAI,YOU ARE THE MOST SELLOUT FUCKUP.ARE YOU PLEASANT TO WATCH MILLIONS OF OUR PEOPLE WITH THEIR CHILDREN STARVE TO DEATH? ARE YOU PLEASED TO SEE THAT OUR PEOPLE ARE DYING IN THE… Read more »
amakwilila nseu ndi madongo ,tala kusalazila pamwamba basi
.
Shame Devil.All the important instutions all over the world are pouring in monies in the country.what does that mean?They are satisfied with the leadership.No question about it .These doners have no nonsence.Mtambo with your master s you are waisting your time.these doners know you in and out.
HI ZBS, KODI MUMANGOWONA ZOIPA ZA BOMA BASI NKHANI YAMSEU NDIYE NUMBER IOOO IMENE A MWANAMVEKA ASAYINIRA KOMA ANAKATI DILU YALEOHEREKA BWENZI ILI NKHANI KODI AMATERO? A SULEMANI AKYANKHA BWINO IYO NDIYE NKHANI KOMA AKAYANKHA MBWERERERA NGATI DZULO INU ZIIIIIIIIIIIIIIIIIII AMATERO? PAJA KULI MARIA CHIDZANJA NKHMA WHO IS FIGHTING FOR MCP BEHIND CLOSED DOOR BEHIND ZODIAK PAJA IN THE 1990S SHE WAS AGAINST BOMA LA ZIPANI ZAMBIRI WHEN SHE WAS AT MBC KODI MAYERO/? IYI WAILESI IYI ZBS IYI NDI YA TAMBAL A WAKUDA IYI ZBS KODI MA PLITICAL SCIENTISTS NDI ATHINDWA,AG.PHIRI NDI AMKAMANGA BASI? AWA NDI ANDALE KAYA COZ… Read more »
This money is already stolen unless, you participate in the selection of the Main Contractor who should be from Europe (Particularly Germany) or South Africa. You should participate by appointing an outside company to conduct QC activities. And then an outside Project MANAGER as it was done with the Nkhata Bay – Mzuzu road. Else the DPP thieves will pounce on this money
What I know is that negotiations and planning started some years back. Sikuti amangoti kudzuka lero and have such kind of moneys.
May i propose that STRABAG should construct this road? Ma china or Mota Engil ayi
That money is already stolen…..
The Lilongwe to Kasungu stretch of the road need no rehabilitation but actual wide new road. EU make sure you hire contractors yourselves and monitor the work otherwise this money will be a christmas gift to cadets
Chonde chonde EU find a contractor and supervise yourself
It is high time M1 is dualised. In this age that’s the only road development we would call “modern”.
The project funds should be given to Malawi Government after the re-run.