By Wezzie Gausi
The Ministry of Water and Sanitation has said it needs $280 million (about K490 billion) to complete the Salima-Lilongwe Water Project.
The initiative is being implemented by Khato Civils and South Zambezi, as part of a joint venture.
According to the ministry, as of this month, the government has managed to pay $40 million (about K70 billion) to the contractors against the needed $58 million (about K101.5 billion) in the first phase.
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Speaking after appearing before members of the Parliamentary Committee on Government Assurance and Public Sector Reforms in Lilongwe Wednesday, Secretary for Water and Sanitation Elias Chimulambe said the money that was disbursed came from NBS Bank and CDH Investment Bank, which provided K55 billion and K50 billion, respectively, in March.
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He said the Special Purpose Vehicle had used part of the funds to make payments to the contractor in respect to the payment certificate issued by the contractor for mobilisation and commencement of works.
“Parliament passed a bill that authorised the government to borrow money from local banks for the project. That is why we had to borrow the money from the said banks for the works to commence.
“Since March 2024, the contractor made steady progress in mobilising equipment and machinery and established camp sites and offices at Lifuwu, Kanyenyeva and Chezi. Key equipment, including dozers and excavators, among others, has been mobilised,” Chimulambe said.
Committee chairperson Noel Lipipa said the project was long overdue.
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He said it was high time the government mobilised resources fast so that the contractor could commence works on the ground.
“We are impressed with what the ministry has told us but we strongly feel that issues of finance are still a challenge. As we all know, resources for this project have to be generated locally, which becomes a challenge,” Lipipa said.
The objective of the project is to increase water availability for Lilongwe City, Salima and Dowa districts.
