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RFA sees fuel levy boosting road rehab

Roads Fund Administration (RFA) says it expects the projected K250 billion road maintenance levy in the 2026/27 financial year to boost road construction and maintenance nationwide.

RFA chief executive officer Stewart Malata said in Lilongwe yesterday after meeting Lilongwe City Council officials and committed K15.5 billion for city roads projects.

The allocation will support the completion of stalled works and kick-start new projects.

Malata said the resumption of fuel levy remittances, collected by the Malawi Energy Regulatory Authority (Mera), has restored a critical funding stream, but warned it will take four to five years to recover from the disruption that crippled maintenance and construction.

But he said the projected K250 billion remains inadequate for a growing and ageing road network.

Malata: It is not enough.
| Andrew Viano

“The K250 billion may seem significant, but it is not enough when you consider the needs on the ground and the cost of maintaining a kilometre of a road. It is, however, a start,” said Malata.

He said RFA is prioritising durable road construction to reduce long-term maintenance costs, adding that allocations to councils will be reviewed mid-year, subject to continued levy remittances.

Lilongwe City chief executive officer Clement Stambuli said contractors have been engaged and works are expected to start within 60 days.

The projects include rehabilitation of the Area 18-Senti Road, a link between the six-lane Saulos Klaus Chilima Highway and Youth Drive to Kamuzu Barracks, Area 49 Shire Road and Area 43 Road, as well as construction of a bridge at Cherub and a new road linking Area 47 and Area 49.

Stambuli said K500 million from the allocation is earmarked for pothole patching across the city, targeting areas 47, 43, 10, 11 and parts of 25.

In March, RFA said it had budgeted K300 billion for nationwide road maintenance and rehabilitation, including K100 billion for routine works and K50 billion for repairs on the M1 between Lilongwe and Blantyre.

City councils are expected to share K40 billion, while municipal councils will receive K11 billion. A further K15 billion has been set aside for emergency works.

Fuel levy remittances were disrupted in 2023 after government suspended the Automatic Pricing Mechanism to contain pump prices, depleting the Price Stabilisation Fund and halting payments to RFA.

The move led to arrears of about K1.29 trillion owed to fuel importers and K593 billion in unremitted levies to public institutions.

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