House approves K20bn loan for M5
Parliament on Monday approved a Bill for the government to borrow $20 million (about K20 billion) from the Opec Fund for the rehabilitation of the M5 stretch in Nkhotakota District.
The Bill seeks to authorise the Minister of Finance and Economic Affairs, on behalf of Malawi Government, to borrow the funds to finance the rehabilitation works on the Benga-Nkhotakota-Dwangwa section of the M5 and ancillary works under the Southern African Development Community (Sadc) Sub-Regional Transport and Trade Facilitation project.
Minister of Finance and Economic Affairs Sosten Gwengwe said after the passage of the Bill, the road infrastructure to be rehabilitated will facilitate the movement of people and goods and will boost trade in the Sadc region.
He said: “The road is taken as a regional corridor as it connects people in Malawi, Mozambique and Tanzania and we have got partners who are very much interested in us being able to move goods and people via this route.
Gwengwe said the project will be jointly funded by the Opec Fund for International Development, the African Development Bank (AfDB) and the Malawi Government.
“So, the board of AfDB will be meeting next month and will be approving the next chunk of the funds for the road project and that the Ministry of Transport through the Roads Authority are already in talks regarding the procurement process,” he said.
Nkhotakota North East legislator Overstone Kondowe (Malawi Congress Party) yesterday applauded the House for approving the Bill, saying the M5 is key as it helps farmers in the district to move their goods to the markets.
The project, will among others, rehabilitate the 101 kilometre road linking Benga to Dwangwa, including the conversion of single lane bridges to double lane, construction of two weighbridges and rehabilitation of 50 km of district feeder roads in Nkhotakota and Salima districts.
