FDH Bank plc has powered the rehabilitation of the 58.4 kilometres (km) Golomoti-Monkey Bay Road in what Minister of Transport and Public Works Jappie Mhango described as a major step towards revamping the country’s road network.
Through a K100 billion credit facility, the Malawi Stock Exchange-listed homegrown commercial bank will finance a 30km section of the road from Chantulo to Monkey Bay Turn-off classified as Lot 1. On the other hand, the section from Chantulo to Golomoti Trading Centre classified as Lot 2 will be funded by a yet-to-be unveiled partner, according to the minister.
the launch. | Courtesy of FDH Bank Plc
Mhango said the rehabilitation and reconstruction of the road, a shorter route to Lilongwe, will revamp the country’s road infrastructure and boost tourism, agriculture and fisheries.
He said Unik Construction is the contactor for Lot 1 and the construction period is 24 months while Lot 2 will be constructed by Mota-Engil.
Speaking during the launch at Sangadzi I Primary School in the area of Senior Chief Nankumba in Mangochi, Mhango said the project forms part of the government’s broader programme to rehabilitate key roads that have deteriorated over the years due to inadequate maintenance and effects of climate change.
He said government plans to repay loans financing strategic road projects through future toll gate collections and fuel levies.
“The reconstructed road will be designed to withstand floods and other climate-related shocks that have repeatedly damaged road infrastructure. We want a state-of-the-art road that will stand the test of time and open up economic opportunities, including attracting more tourists to Mangochi,” said Mhango.
The Golomoti-Monkey Bay section of the Masasa-Golomoti-Monkey Bay Road has over the years been prone to damage caused by flooding. The road further deteriorated in recent years that it took travellers more to cover the distance, mostly at speeds of about 50 km per hour.
In his remarks, the minister cautioned against illegal developments within road reserves, saying government will no longer compensate individuals or companies that construct buildings or install utility services within protected road corridors in contravention of the Public Roads Act, 2023.
FDH Financial Holdings Limited chief executive officer William Mpinganjira, whose group is the parent company for FDH Bank plc, said the bank financed the project because it realises that robust road infrastructure is critical to Malawi’s economic growth.
“Previously, we supported smaller projects, but we have now grown and are able to finance major developments that can spur economic growth. We are proud to be part of this national project,” he said.
Mpinganjira said the bank remains committed to supporting government in delivering transformative infrastructure projects through locally mobilised financial resources instead of relying solely on foreign financiers.
Roads Authority board chairperson Engineer Witness Kuwotcha said the authority will closely monitor the project to ensure the contractor delivers work that meets required standards.
He said the road is vital to Mangochi’s tourism industry and will also improve access to schools, health facilities, markets and other essential services for surrounding communities.
The Golomoti–Monkey Bay Road was constructed about two decades ago with support from the European Union.
The financial institutions financing model comes against a background of similar arrangements in Lilongwe with NBS Bank plc for the Parliament to Bingu National Stadium dual carriageway and Area 18 Traffic Interchange as well as the six-lane Saulos Klaus Chilima Highway funded by Standard Bank plc and Old Mutual Malawi Limited.
