Marep 9 deadline pressure mounts

The Public Procurement and Disposal of Assets Authority (PPDA) is yet to approve requests for contract price increases following the devaluation of the kwacha for contractors involved in the Malawi Rural Electrification Programme (Marep Phase 9).

According to Ministry of Energy Principal Secretary Alfonso Chikuni, the project completion timeline will likely be delayed by about three months due to the requests.

In an interview this week, Chikuni said the requests are driven by devaluation of the kwacha, rising fuel prices, and the increase in the minimum wage implemented by the government in late 2023.

He explained that the ministry scrutinised each request and submitted them to the PPDA for approval.

PPDA spokesperson Kate Kujaliwa confirmed that the authority received submissions from the Ministry of Energy for ‘No Objection’ for price adjustment on various contracts for Marep 9 following the re-alignment of kwacha.

“The review process of the submission is not in any way conditioned or attached to the said completion deadline of the Marep 9. Rather, all necessary procedures for the review are being undertaken in respect to the provisions of the public procurement and disposal of public assets legislation,” she said.

The Marep 9, which has faced delays since 2020 at the procurement and contracting stages, was initially planned for completion by March 31 2024.

The deadline was later extended to August 2024, and more recently, authorities expressed hope for completion by October 2024.

Marep 9 was estimated at K40 billion in 2022 but, as of now, about K62 billion has been spent, according to authorities.

Chikuni dismissed reports that some contractors have abandoned their sites due to these challenges.

Some contractors Weekend Nation spoke to confirmed that they have not abandoned sites, but that work is progressing slowly because of the outstanding issues.

One of the contractors, who did not want to be named, explained that he wrote the ministry last year on price escalations and the minimum wage increase and that several meetings were held with officials from the ministry, but there has been nothing tangible to date.

He said: “Fuel price has doubled from K1 920 to K2 742, representing a 42 percent increase. This means if we had budgeted for K1 million for a truck, then we are using K1 240 000 million for the same distance.”

This week, officials from Marep and the Parliamentary Committee on Government Assurance and Public Sector Reforms toured several Marep sites in Lilongwe, Mulanje and Mangochi districts to assess progress and challenges.

Speaking during the tour, Ministry of Energy deputy director for rural electrification Francisco Chingoli indicated that out of the 460 targeted centres, which aim to benefit 46 000 households, 160 have been completed and commissioned, benefiting 16 000 households.

Chingoli said the ministry is finalising preparations for Marep 10, which is expected to cost K105 billion, with procurement processes set to commence soon.

He added that 700 sites will be targeted under Marep 10, translating to 70 000 households.

In an interview, Parliamentary Committee on Government Assurance and Public Sector Reforms chairperson Noel Lipipa pointed out the major challenge is the disconnect between Marep and the Electricity Supply Corporation of Malawi (Escom).

He said the committee has since proposed a meeting with both parties to address identified bottlenecks.

One of Marep 9 beneficiaries in Kasanga Village, Traditional Authority Nankumba, Steven Lumasi, observed that most of those being connected are along the road, where power poles have been erected, while those away from the power lines are still waiting to be connected.

Chikuni also acknowledged that the ministry is grappling with a K40 billion funding deficit.

“Mera is not remitting fuel levies, and this is a problem,” he said.

The contracts for Marep 9 were signed in December last year and some contractors started work in January, 2024 while others started in February.

Marep was mooted to increase access to electricity, especially in rural areas where just about five percent of the population is connected.

Marep 9 planning started in 2019, with the first tender for the supply of materials floated in May 2020. However, the Tonse Alliance administration suspended issuance of new contracts in June 2020, a development which led to the expiry of bid validities.

Since Marep started in the 1980s, over 1 166 sites have been connected to the national grid, benefiting over 60 000 households or over 300 000 people accessing electricity.

Parliamentary Committee on Health chairperson Mathews Ngwale earlier lamented the delays in implementation of Marep 9, saying it has had a huge impact on health services.