Govt signs K113.2bn financing agreement

Government is optimistic of a transformed and improved transportation sector in the country following the signing of a road financing agreement with the European Investment Bank through the European Union which will see the rehabilitation of the M1 road.

Minister of Finance, Economic Planning and Development, Joseph Mwanamvekha said this on Wednesday during the signing ceremony of the 140 million Euros which is equivalent to MK113.2 billion financing agreement.

In his words, Mwanamvekha said part of the funds is a loan whilst the other is a grant, and it will be used to rehabilitate the Kamuzu International Airport turnoff to Mzimba junction M1 road.

“We have signed two agreements; the first one is the 120 million Euros which will be used to rehabilitate the M1 road from Kamuzu International Airport turnoff to Mzimba junction of which 80 million Euros is a loan whilst the 40 million Euros is a grant,” he said.

Mwanamvekha added: “We have also signed a 15.5 million Euros as additional financing for the Kacheche – Chiweta Section of the M1 road. Besides that we have also signed a technical assistant agreement to support the Malawi Roads Authority for the project implementation worthy 4 million Euros.”

In her remarks, European Union Ambassador to Malawi, Sandra Paesan said the move marks a new beginning in the country’s economic growth as trade, transport and communication is expected to improve.

“Malawi is landlocked and this comes with various challenges, so good road networks and connection is the only option to proper linkage with other countries. This development will really mark a new dawn in Malawi’s economy. It will ease trade, transportation, communication and linkage and it will really transform the life of an ordinary Malawian.”

Minister of Transport and Public Works, Ralph Juma said the move will ease the transportation challenges the country has been experiencing.

“Malawians have been patiently waiting for the rehabilitation of the road, I am certain that we will do everything possible to ensure that we complete this project as soon as possible,” he said.

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