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NBS, Roads Funds Administration partner for development

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NBS Bank has partnered the Roads Funds Administration (RFA) to construct a road section from Bingu National Stadium in Area 49 to Parliament roundabout in Lilongwe.

Under the agreement, NBS will finance the K7 billion project which is expected to commence anytime this month.

NBS Chief Executive Officer, Kwanele Ngwenga, stressed that the move is in line with the institution’s drive to be involved in more Public Private Partnership (PPP) deals as part of the bank’s contribution to the country’s development.

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“We have always believed that for an economy to grow, there should be PPPs in infrastructure development and there are a lot of funds that are idle in the country, such as pension funds that if put to use, will transform the economic landscape,” Ngwenya said.

Ngwenya’s sentiments were echoed by the bank’s Board Chairperson, Vizenge Kumwenda. Kumwenda said that the deal goes beyond the benefits of the bank as a lending institution but also the quality of the final product.

Board Chairperson of RFA, Bernadette Mandoloma, stressed that the move was adopted as a strategic plan incorporated in the department’s reforms agenda, which were approved by the Reforms Commission.

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“This will allow us as financiers of road maintenance, to free our resources for other road maintenance works while doing a more significant work as is the case,” Mandoloma said.

Secretary to the Treasury, Ben Botolo, who was also guest of honour during the signing ceremony, commended the two for embarking on the project.

He emphasised that more players should enter similar deals with other government departments to utilise resources that are locally available.

“We normally fund such projects using funds from development partners but now, we are saying let’s do it on our own and raise capital right here in Malawi,” Botolo said.

The project is expected to be completed by September 2019 while the RFA is expected to repay the money within the next five years.

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