National Bank of Malawi (NBM) Plc has partnered the Malawi Government in a public-private partnership (PPP) arrangement to boost water transport and shift cargo from road to water.
Under the arrangement, the bank will rehabilitate the ageing MV Ilala and procure two new vessels, according to Minister of Transport and Public Works Jappie Mhango.
Speaking in Parliament in Lilongwe yesterday, the minister said the planned shift to lake transport is a key pillar of the National Transport Master Plan designed to cut road maintenance costs and improve cargo efficiency.
a PPP arrangement. | Nation
Mhango was responding to Nkhotakota Central member of Parliament (MP) Sylvester Ayuba James (independent) who warned that in the absence of a deliberate transition to water transport, the cycle of road damage and costly rehabilitation would persist.
In response, the minister said: “We have partners that have come to our ministry. One of them is National Bank which has committed to rehabilitate the Ilala.
“As the MV Ilala is being rehabilitated, they will also procure two new vessels that will ply on the lake.”
Mhango said in an interview later that the arrangement with NBM Plc is a partnership rather than a loan, although timelines are yet to be finalised as discussions continue.
He said other firms such as Nico Holdings Plc have also expressed interest in infrastructure partnerships in road construction projects while additional investors are keen to modernise lake transport services.
In service since 1951, the MV Ilala remains Malawi’s main passenger and cargo vessel on Lake Malawi but has long been earmarked for replacement due to age and safety concerns.
Previously, government indicated that a new vessel would cost about $40 million (about K68 billion) while the Ilala itself has required frequent maintenance, including repairs to its anchor last year.
The latest initiative follows government’s decision to repossess the Ilala and other lake operations from private operator Mota-Engil and re-establish control through a resuscitated State-run Malawi Lake Services Company.
