Parliament has differed a loan approval bill that seeks to authorize government to borrow money from African Development Fund amounting K27.3 billion for phase five of the Multinational Nacala Road Corridor Development project.
According to Minister of Finance, Economic Planning and Development Joseph Mwanamvekha, the project is vital for the country`s development as it will boost the transportation sector.
“We are going to rehabilitate the Msipe-Liwonde Road and also the One Stop Border Post at Chponde, this meant to sure that we facilitate trade among the three countries; Mozambique, Malawi and Zambia.
“As you are aware that trade is very important and also transportation plays a very important role in terms facilitating development of a country,” said Mwanamvekha.
Mwanamvekha has also asked tax-payers not to worry on the loan will be repaid saying this a soft loan.
“When we say we want a soft loan, it means we are trying to reduce the burden on Malawians, so the longer it takes, the less it pushes pressure on Malawians, and that’s good for us,” underscored Mwanamvekha.
Meanwhile, members of Parliament are expected to continue the committee stage of the loan authorization bill next week.
According to Mwanamvekha, if approved, the loan will be paid back in the next 40 years with a considerable interest rate.