Billions spent,no road yet
Three contractors engaged and a fourth one recently roped in, at least K3 billion spent, but nothing much to show for a 20-kilometre (km) road project.
This is the story of the 20km section of the Rumphi-Nyika Road between Chikwawa and Bembe in Rumphi District initially projected to cost K5.1 billion for upgrading to bitumen in 2018, but will now see taxpayers coughing up to K29.9 billion.
When former president Peter Mutharika launched rehabilitation works on the section on July 12 2018, Mota-Engil Malawi was engaged at a contract sum of K5.1 billion. However, the contractor left the site after doing preliminary works on six kilometres and after being paid paid at least K1.7 billion.
Next on site was Zhenjing Communications Construction Company Ltd and China Railway No.5 who were contracted to undertake maintenance works and were paid K1.2 billion.
Then on April 8 2022, Roads Authority (RA) issued a notice of awarding the contract to Unik Construction Limited at a cost of K7.694 billion to complete rehabilitation works on the 20km patch. However, the third contractor too left the project site last year after also getting an undisclosed payment.
This time around, RA has engaged a fourth contractor, Plem Construction Limited, which will undertake the works at K24 billion, taking the total project cost to K29.9 billion representing about 580 percent cost increase.
In an interview yesterday, RA board chairperson the Reverend Matilda Matabwa confirmed this development yesterday and acknowledged the delays on the project, saying changes of contractors were of great concern.
She said: “The contract was handed over to Plem Construction. For us to have the company mobilise and be present on site, it shows that all procedures have taken place and are concluded.
“We are assuring the public that this road will be worked on because Plem has accepted the contract and RA knows what the company is capable of in delivering the work.”
Matabwa said issues of cost overruns come as a result of the alignment of the kwacha to the United States dollar as well as fuel and other factors.
But the delays have raised concerns that the road, which leads to one of the country’s beautiful natural wonders, Nyika National Park, could be one of the many projects that have become cash cows for the political elite.
Rumphi West parliamentarian Yona Mkandawire (independent) is not amused and described the financing situation as deplorable.
He said: “It’s a shame that government continues to take people for granted. It’s simply a way of siphoning money. I called the RA board chair on the matter. I have made too much noise in Parliament, but there is nothing happening this far.
“We are worried because no funds are being provided and we may end up having government pay the costs of demurrage. The Minister of Transport [Jacob Hara] said in Parliament that the road project will start next year, and we wonder, what will the contractor be doing on site this time without funds?”
Plem Construction managing director Jay Khrishnan pledged his company’s commitment to deliver the project.
“Our company has never failed to complete a project. I understand we have to prove ourselves, but I can assure you that we will complete it,” he said.
Hara did not respond to our calls on several attempts, but in January this year, he conceded that 28 road projects worth about K439.8 billion were bound to cost taxpayers more due to cost overruns as a result of delays in executing them.
The World Bank Transport Infrastructure Sector Assessment Programme report released in February 2023 said the Malawi Government needs about K1.57 trillion to finance road projects by 2025 to promote connectivity and economic growth.
The report said the country’s comprehensive medium-term road infrastructure investment covering the year 2020-2025 would need roughly K2.30 trillion.
