EIB Loans Malawi K12bn for water supply
The European Investment Bank (EIB) and Malawi government have today signed a financing agreement worth K12 billion (US$27 million) towards the implementation of the Lilongwe Water Resources Efficiency project.
The resources, in form of a highly concessional loan with an interest rate of 1.5 and a repayment period of 25 years, intend to improve the investment in the Lilongwe Water Board so that the institution increases its water storage capacity at Kamuzu Dam and improve the water treatment facilities.
EIB vice President Valkon Ballorem and Finance, Economic Planning and Development Minister Goodall Gondwe signed the agreement at Capital Hill.
EIB is world’s largest lender for the water sector and owned directly by the 28 European Union member states.
Ballorem said the new investment is essential as the population of Lilongwe is expected to double in the next 20 years.
“Crucial upgrading and improvements to the city’s water infrastructure will be managed by the Lilongwe Water Board over the next four years and increase the supply of water in low income areas where services are currently limited as well as reducing water leakage,” he said.
According to Ballorem, the resources will help ensure efficient use of the existing water network and scarce water sources as the city is independent on water from the Lilongwe River.
The project, said the EIB veep, will both improve reliable water supply for customers and share water management best practices staff of the Lilongwe Water Board under a dedicated technical assistance program.
Reacting to EIB gesture, Gondwe said he was pleased to have signed the project which he said will help the government address some of its bottlenecks facing the Lilongwe Water Board.
Gondwe said the support from EIB will have a direct impact on the people residing in the city of Lilongwe.
The minister, however, urged the Lilongwe Water Board officials to ensure using the resources properly and for intended purpose.
“As you are aware, the present administration is very serious about tackling abuse of public resources and for this reason, any misappropriation of the resources will be punished according to law,” said Gondwe.
