Khato Civils has appealed to financiers of the K260 billion Salima-Lilongwe Water Supply Project to ensure timely disbursement of funds to avoid disruptions in the implementation of the project.
Speaking yesterday in Salima when Ministry of Water and Sanitation, Reserve Bank of Malawi and NBS Bank plc inspected the level of mobilisation and civil works, Khato Civils Group director of finance Pride Phiri said the project is on course as per the agreed schedules with the Malawi Government.
equipment in Salima. | George Singini
He said: “As a contractor we are committed to have the project completed within 24 months. But in mega projects, such as the Salima-Lilongwe Water Supply project, it works well with steady cash flow.”
Phiri indicated that Khato Civils has already spent about $81 million (about K142 billion )on the project of which $50 million (about K88 billion) is from the financier, saying among other things, the funds have been spent on marine and seismic engineering, structure designs, geotechnical surveys, equipment and human resource mobilisation, deposits for materials such associate steel, cement and pipes.
Khato Civils senior project and design engineer Tinofirei Mawanza said the works undertaken were ahead of time and that they have planned works activities in a way that they will not be affected by rains.
Ministry of Water and Sanitation Principal Secretary Elias Chimulambe expressed satisfaction with progress of the project, saying it is in line with work schedule and that the 100 percent mobilisation, commencement of the civil works gives hope that the project will be ready in 2026.
“We are impressed with what we have seen, they have started very well. They have all the materials in place, they have the steel, they have all other equipment suitable for the work that they are doing,” he said.
Government is contributing 30 percent of the money for the project while 70 percent will be provided by investors interested in the project.
Malawi Government has also borrowed funds from local commercial banks, NBS Bank plc as lead arranger for the project and CDH Investment Bank.
The project seeks to improve water supply to the capital city, Lilongwe, amidst growing population.
