The European Union (EU) has announced 20.4 million euros (about K40 billion) additional funding for the completion of the the portion of the M1 between Kamuzu International Airport in Lilongwe to Songwe Border in Karonga.
Addressing the press in Lilongwe on Friday, EU Ambassador Rune Skinnebach said the EU mobilised the additional funding after the project costs increased due to some delays and inflation factors, among others.
Initially, the EU pumped in 140 million euros (about K273 billion) for the project which was expected to be completed by December 2024, and the envoy has since expressed hope that the new deadline of 2026 will be met.
Said Skinnebach: “Due to shortcomings in the initial detailed design prepared in 2018, further road deterioration and increased traffic loads, additional funding is now required to complete the necessary works as well as to cover part of the inflation costs and implementation support in order to ensure the sustainability of the project.
“In order to cover the additional financing gap, the EU has recently approved an additional investment grant of 20.4 million euro, which could be blended with the European Investment Bank concessional loan to be agreed with the government of Malawi in the coming months.”
In his reaction, Roads Authority chief executive officer Engineer Ammiel Champiti said the authority will ensure that the project is moving at the right pace to meet the new deadline.
He said the additional funding from the EU is greatly appreciated, adding that the Malawi Government is also contributing 20 million euro.
Said Champiti: “The reason is because this is a very critical road for Malawi. The delay on the project is approximately running over into 12 months. That’s an approximate period that we anticipate the project would take. When we consolidate, we get an estimate that it will take to that end.
“Currently, almost 75 percent of the fuel is coming through that road and also we have a lot of goods that are coming through the Dar es Salaam Port.”
Among others, the 20 million euro will be used to construct a new bridge over the Songwe River between Malawi and Tanzania, which will further enhance regional integration.
