K489.8bn road projects stall

 Taxpayers should brace to pay more than budgeted for 28 road projects worth about K439.8 billion which have stalled due to several factors, including foreign exchange shortage and some contractors’ lack of capacity.

In its ‘2023 Progress Report on Implementation of Road Projects and Upcoming Projects Under Procurement’ submitted to Parliament last week, Roads Authority (RA) indicated that the projects missing deadlines include both those funded by the Malawi Government and by development partners as well some jointly funded by the two entities.

“Shortage of forex has affected most contractors as they are unable to import key construction materials. The scarcity of fuel had led to almost all contractors slowing down works on site,” reads the document in part.

The report further indicates that some contractors lack financial capacity to carry out works, leading to suspension of works and delays.

A summary on one project worth K31.4 billion reads: “The contractor has had capacity challenges to complete the remaining works and the [RA] board granted approval to curtail the works and repackage the remaining works.”

The report says other contributing factors to the delays include rains and disasters, lack of environmental and social impact assessments and delays in submitting the Construction, Environment and Soci a l Management Plan for the projects.

The report further indicates that delays in some projects are due to delayed payment of compensation to people affected by relocation to pave the way for the projects.

In an interview last week, RA acting chief executive officer Francis Dimu lamented the delays, saying they affect the public who are denied utilisation of the roads that fail to be delivered on time.

He also bemoaned funding challenges by government as further affecting the timely completion of projects.

Said Dimu: “Some projects are not being allocated the required amount. When you compare what we presented as our needs and the approved budget, the budget figures for each and every project, there is a difference.”

In the 2023/24 National Budget, the Annual National Roads Programme is allocated K123.218 billion of which K63.349 billion is for the development programme while K57.868 billion is for the recurrent budget.

Ministry of Transport and Public Works spokesperson Watson Maingo in an interview said the project delays are also a concern to the ministry.

“When the minister engaged contractors on days lost, he emphasised on the need to work extra hard,” he said.

On his part, Parliamentary Committee on Transport and Public Infrastructure chairperson Enock Phale expressed worry that roads are missing targets which in turn affects other developments.

He said the country needs good roads to support development and protect lives.

“Now that it is the dry season, we hope that contractors will expedite the construction and maintenance of some of the roads,” said Phale.

He also observed that the handling of multiple projects by one contractor has a bearing on capacity as contractors become overwhelmed when they are awarded multiple contracts.

Said Phale: “We wish the law would limit the awarding of contracts so that contractors are able to concentrate on a few and complete them before they participate in another lot.”

Thuchila Bridge project, one of the affected projects, has recorded a paltry seven percent progress against 100 percent time elapsed. The project commenced on September 26 2022 and was scheduled for completion by June 26 2023.

Other projects are the K41.3 billion 75-kilometre (km) Njakwa-Livingstonia, Phwezi Mphwamphwa and Livingstonia Loop Road in Rumphi District where physical progress is 68 percent against 112 percent time elapsed.

By December 2022, 51km of the road have been worked on. The completion date was April 3 2022 for the project which started on  November 1 2016.

The remaining 24km has been repackaged and a procurement process has begun.

The K9.7 billion Ntcheu- Tsangano Phase One covering 21km, which commenced on April 3 2018 and was to be completed by June 30 2023, has only recorded 74 percent progress against the 100 percent revised time elapsed.

Phase Two of the K6.7 billion Ntcheu-Tsangano Road has recorded 28 percent progress against 96 percent time elapsed. The project commenced on November 1 2021 and is set for completion by July 23 2023.

The K7.7 billion Rumphi-Nyika Road project, covering 20km, has recorded 35 percent progress against 89 percent of time elapsed. The project commenced on August 24 2022 and is to be completed by August 23 2023.

During an assessment tour of the M1 rehabilitation last week, Minister of Transport and Public Works Jacob Hara expressed dissatisfaction with the slow progress of the 42 million euro (about K53 billion) rehabilitation on the Lilongwe-Kasungu section.

On the other hand, Hara expressed satisfaction with progress in the Second Lot from Kasungu to Jenda in Mzimba being implemented by Mota- Engil and the Lot Three from Jenda to Mzimba Turn-off by Unik Construction Engineering Limited.

President Lazarus Chakwera on July 12 last year launched the rehabilitation works for the targeted sections of the M1 extending over 301 kilometres from KIA junction to Chiweta in Rumphi.