Malawi should improve its infrastructure—MIE
The Malawi Institution of Engineers (MIE) has said Malawi needs to do more to improve its infrastructure and turn around the country’s economic growth and development.
Speaking in an interview on Wednesday at Walkers Ferry in Blantyre when engineers toured Blantyre Water Board (BWB) projects, MIE president Andrew Thawe said utility companies must be allowed to make surpluses to enable them to meet their operational and capital investment requirements.
Thawe, who is also the BWB chief executive officer, argued that for utility companies—Escom and water boards—to make meaningful investments, tariffs must be raised to recover costs.
“The problems with utility tariffs is that they are too low for the companies to make surpluses and invest in huge projects that would spur the provision of electricity and water. With the utility companies experiencing financial problems, the only source for finance for investments is to borrow. But even debt becomes a problem to service when the companies have poor financial positions,” said Thawe.
He, however, said considering that some consumers can not afford utilities at market rates, the government has to ensure that they have access to them.
Recently, the Malawi Energy Regulatory Authority (Mera) approved a 37.28 percent average tariff increase to be implemented in a phases over a four-year period starting from April 4 2014 to ensure that Escom has a healthy financial position.
According to Mera, electricity tariffs will change from K31.54 per kilowatt hour to K43.24 per kilowatt hour over the period.
Commenting on roads, MIE has noted that there have been some improvements in the sector but the country still needs more and better road network.
Thawe added that so far there have been improvements in Escom’s investments and rehabilitation of its equipment.
He argued that the Green Belt Initiative (GBI) and the mining sector which he said are set to improve the country’s development will require a proper road infrastructure and power.
Thawe said the recently proposed projects in the power sector must materialise quickly if the GBI and the mining sector are to develop fully.
Apart from revitalising Escom, recently government said it will construct a coal-fired power plant at Kammwamba in Neno which is expected to add 300 megawatts to the national grid. According to authorities, the project still awaits financing from China to take off.
Malawi also signed a memorandum of understanding (MoU) for the construction of another coal-fired power plant by Intra Energy Corporation at Chipoka in Salima which will generate about 120 megawatts.
The country also signed a power interconnector with Mozambique which will see the country importing power from its neighbour.
