Malawi borrows K3.4bn for Chingale Road
Malawi has borrowed $10 million (about K3.8 billion) from the Kuwait Fund for Arab Economic Development to upgrade the Lirangwe-Chingale-Machinga Road.
Parliament approved the bill so that the road is improved to an all weather 62.3 kilometres road.
According to Minister of Finance Maxwell Mkwezalamba, the road would improve social and economic development of the areas.
Construction works of the road will include bridges, drainages, earth works and environmental protection works.
“The project is expected to be launched in December. The funds will also be used to acquire vehicles and office equipment, land acquisition, review of the design and supervision,” said Mkwezalamba.
But the $10 million borrowed for the road is a drop in the ocean as government is expected to borrow an additional $30 million, $10 million each from the Saudi Fund for Development.
Government is expected to contribute $10 million towards the construction of the road, said Mkwezalamba.
The minister also denied that government’s borrowing had reached alarming levels.
“In taking the decision to borrow, government makes a debt sustainability analysis and we are sure that government will be able to service this debt,” he said.
The loan would be repaid at 1.5 percent interest per year over 24 years with a four-year grace period.
its 10.6 million usd and 4.2 bllion kwacha
Nanga old airport – nsalu -kasiya – Nsanthe road mubwereka liti ndalama zake?
osangokatengapo ma billion munampatsa Lutepo aja who passed on PP. Or withdraw the order to APL yamabasi a PP aja and ask for a refund?
Why borrow 3.5 billion kwacha instead of asking PP for a refund of the money they looted.