Khato mobilises for K551bn water project
Khato Civils, the contractor for the $351 million (about K551 billion) Salima- Lilongwe Water Project, says it has now mobilised the entire plant and equipment to execute the project.
The development raises hope that construction of the long-awaited project expected to solve water woes in the capital city will commence soon.
A project update posted on Khato Civils Facebook page indicates that the company has already procured a high-tech concrete batching plant and carbon steel pipes for the 120 kilometre pipeline project and that production of the carbon steel pipes is underway.
Reads the update: “At this stage, the entire plant for the project has been mobilised, including trucks, trailers and cranes, and are ready for shipment to Malawi.”
And in an interview on Sunday, Khato Civils spokesperson Daniel Mababa confirmed that mobilisation is at an advanced stage and that there is personnel on the ground.
However, he could not say when the construction of the water supply system will commence.
In a separate interview, Ministry of Water and Sanitation Principal Secretary Elias Chimulambe said the contractor is within schedule.
He said the contractor has set up a camp and cleared the site for the treatment plant.
Said Chimulambe: “The contractor was procuring materials and most of the materials have now been secured, which will see physical works progress well once construction starts.
“The contractor could not start digging trenches because people were yet to harvest their crops. If he rushes to do the treatment plant, you might find that something goes wrong. So, he wants to ensure that everything is in place.”
On the funding secured for the project, he said the ministry is comfortable with the 30 percent funding that government has provided to start the project.
Chimulambe added that NBS Bank plc will also arrange for the rest of the funding, as the bank is the lead arranger for the project financing.
In April 2023 , Parliament approved a Bill allowing government to borrow K105 billion from local banks to finance construction of the water project awarded to Khato Civils/South Zambezi joint venture.
President Lazarus Chakwera assented to Bill No. 6 of 2024: NBS Bank plc and National Bank of Malawi plc (Lake Malawi Water Supply Project) Loan (Authorisation).
The financing arrangement attracted protests, but the Malawi Supreme Court of Appeal ruled that the two banks were free to proceed to lend government the money, thereby lifting an order sought by Forum for National Development stopping the process.
