Salima-Lilongwe Water Project Equity Revised to $100 Million
On Friday, Parliament authorized the Minister of Finance to incur and adjust a sum of K105 billion to US$100 million for implementation of Salima-Lilongwe water project which intends to supply safe and clean water to the capital city and surrounding areas.
Finance Minister was authorized through Bill Number 6 of 2024 which sought to amend the NBS Bank Plc and National Bank of Malawi Plc under Lake Malawi Water Supply Project Loan Authorization Act of 2023.
The amendment of the bill has also incorporated CDH Investment Bank Limited, as one of the lenders of funds
for the Lake Malawi Water Supply Project and revised government equity upwards the sum of K105 billion to US$100 million equivalent to K173 billion.
In his remarks, Finance Minister Simplex Chithyola Banda justified, “Due to the recent currency realignment, the project falls short of the US$ 100 million equity contribution from Government into the Project.”
Banda said, “Government equity is 30 percent, and the other comes from Banks. The Project intends to support sustainable water supply to the city and other areas for different citizens benefit.”
Democractic Progressive Party – DPP Spokesperson on the Bill and MP for Thyolo Central Ben Phiri advised government that the project should not only benefit people from Lilongwe but also those living along the pipeline, that includes Dowa and Salima.
Phiri explained, “The water shouldn’t just come a long way without other use. The people along the pipeline can use it for Irrigation to improve the country’s food security.”
He however agreed with the increase and revision of the sum from what was approved last year of K105 billion to U$100 million and emphasized that a Malawian should implement the project which is Khato Civils.
On the other hand, UDF leader in the House Ned Phoya vehemently supported the bill and conquered with the fact that a Malawian Company, Khato Civils should be given an opportunity to implement it.
Phoya however expressed concern that, “Any project which stalls, does not excite people. I remember the area 18 people got supplied with contaminated water which is bad for people. We don’t need such scenarios again.”
Earlier this year, Ministry of Water and Sanitation admitted that the project by Khato Civils commenced and whole project worths over K500 billion.
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