Roads rehabilitation faces K126bn budget deficit

The Ministry of Transport and Public Works says it has a budgetary deficit of K126 billion for the rehabilitation of roads.   

According to the Ministry`s principal secretary responsible for administration Madalo Nyambose, issues like devaluation and forex scarcity have influenced the delay in road construction projects in the country.

Nyambose, who was speaking in Lilongwe on the sidelines of a meeting with the Parliamentary Committee on Transport and Public Infrastructures, said a good number of contractors are looking for adjustments of their deals.

“But of course, with the devaluation, most of the contractors now, looking for adjustments of their contracts.

“Some of which were fixed contracts, and then we have to go back to the authorities to do ask me for inclusion of any price escalation, formula, contracts, and we wait,” she said.

Nyambose said the Ministry has a budgetary deficit of K126 billion for maintenance and rehabilitation of the country`s roads.

“It is not a secret, there have been some economic shocks during the year; 2023-2024. We are talking about the devaluations; we are talking about the lack of forex.

“We are talking of fuel because of the lack of forex, these have heavily affected the infrastructure development because you know that most of the materials that we use for construction are imported,” she explained.

Reacting to the deficit, Enock Phale who chairs the Committee has vowed to engage Treasury on additional financing of the projects citing that there is low funding to the ministry.

“We have committed ourselves to engage the authorities. In this case, we engage Treasury and I just appreciate why there is that huge cut and why that they are not being resourced well.

“Much as resources basket might be small but look at what is happening. We need resources for preventive maintenance,” said Phale.

According to the Ministry, as of now all construction projects have been affected by the economic shock.

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