K500bn money Bills on the table
Minister of Finance and Economic Affairs Sosten Gwengwe on Wednesday asked Parliament to pass seven money Bills worth $500 million (about K500 billion), saying the resources will help in resolving the current foreign exchange challenges
He said about $250 million (about K250 billion) is in form of grants and the other half loans.
Said Gwengwe: “We believe that this is one such measure that can start easing our pressures on forex, project money or project dollars being one of our major sources of forex apart from exports.”
The minister tabled the Emergency Power Project Loan Authorisation Bill which Parliament swiftly passed. The Bill is meant to allow Malawi access about K62 billion from the World Bank to rehabilitate Kapichira Hydro Power Station’s dam and transmission system which were damaged by Tropical Cyclone Ana in January this year.
The damage saw Malawi losing 129.6 megawatts (MW) on the national grid.
Gwengwe said: “The Bill seeks to authorise Minister of Finance to receive a gift, otherwise called a grant, amounting to special drawing rights [SDRs] 17.9 million which is about K25 billion, but also borrow from the International Development Association a loan of SDRs 26.8 million which is about K37 billion, to finance rehabilitation of Kapichira Hydro Power dam, but also to cater for transmission infrastructure damaged by Cyclone Ana.”
Democratic Progressive Party (DPP) spokesperson on the Bill, Welani Chilenga, supported the Bill but with reservations.
The other money Bills to be tabled include one supporting vulnerable people in terms of public works and social protection, another one to access money from the Opec Fund to finance rehabilitation of part of the M5 (Lakeshore Road) between Dwangwa and Salima and a Bill to access money from the African Development Bank to improve food security in the country. There is also a Bill for resources to fight Covid-19.
