Delayed project implementation will force taxpayers to foot an additional K131 billion bill for the completion of the 31-kilometre (km) Chitipa-Ilomba Road over and above K34.5 billion already spent, it has emerged.
The project for the road that links Malawi to Tanzania, which started in December 2022, was initially billed at K34.5 billion and was expected to be completed by June 2024. However, it remains unfinished with the Roads Authority (RA) now indicating that an additional K131 billion will be required to complete the outstanding works.
In a notification of intention to award a contract published on Monday, RA said China Civil Engineering Construction Corporation will undertake the upgrading and completion of the road, among other projects.
Explaining the sharp increase, RA spokesperson Laurent Kumchenga said the K131 billion was the value of the new contract awarded to complete the outstanding works, based on the remaining scope and prevailing 2026 construction costs.
He said: “The K131 billion takes into account future material price escalations as the contract price will not be subject to price escalations.”
Kumchenga said the new contract covers asphalt surfacing, base course and sub-base; construction of one concrete bridge with pile foundations; eight box culverts and additional pipe culverts; road signage and road-line marking; implementation of the required environmental and social measures; and other associated works necessary to complete the road.
Commenting on the project, Construction Sector Transparency Initiative (CoST) Malawi chairperson Samuel Biton said while such escalation may result from design changes, inflation, unforeseen conditions, delays and additional works, every major increase should be quantified, authorised and supported by documentation.
In July this year, Minister of Transport and Public Works Jappie Mhango unveiled National Bank of Malawi (NBM) plc and FDH Bank plc as financiers of the 58-kilometre Golomoti-Monkey Bay Road, with each partner putting in K100 billion.
