House passes EIB Loan Authorisation Bill

Parliament on Tuesday passed the European Investment Bank (EIB) Loan Authorisation Bill to allow Lilongwe Water Board (LWB) borrow K11.2 billion to improve its capacity and service delivery.

According to Minister of Finance, Economic Planning and Development Goodall Gondwe, the loan, which will be channelled through the Lilongwe Water Resources Efficiency Programme to run for four years, will see LWB increase its capacity, improve installation of prepaid meters and information database systems as well as extend the connection network to low income areas.
Said Gondwe: “LWB will also build 100 kiosks, raise Kamuzu Dam 1 by five metres and build institutional capacity. Government will oversee the implementation of the programme by providing technical support.”
However, Malawi Congress Party (MCP) spokesperson on finance Kusamba Dzonzi said the Bill lacked basic and crucial information.
He said: “Why is the board raising Kamuzu Dam 1 by only five metres? How can the whole LWB want to borrow such amounts to install a water billing systems on pilot basis?”
Chitipa South member of Parliament (MP) Werani Chilenga (People’s Party-PP) echoed Dzonzi’s concerns by asking what will happen to the allocated money if the pilot project fails.

Said Chilenga: “Why is government prioritising wishes of urban dwellers only when there was no budget for boreholes last year?”
Zomba Central MP Patricia Kainga (PP), asked government to consider funding gravity water projects which she feels would benefit more people.
She said: “This programme will only benefit 20 percent of the country’s population whereas the gravity project would benefit almost everyone. This piecemeal approach will not benefit us at all.”
The repayment period of the loan is 25 years and attracts a 1.4 percent interest with a five-year grace period. n