Opec Fund queries govt on road projects

Opec Fund for International Development (Ofid) has said it is discouraged by stagnation of road projects in Malawi despite additional financing and support from co-financiers, The Nation has learnt.

In a letter dated May 8 2015 and signed by Ofid assistant director Faud Albassam addressed to Roads Authority (RA) chief executive officer Trevor Hiwa, Ofid has also told the Malawi Government to tread carefully on Local Competitive Bid (LCB).

The letter has been copied to Ministry of Finance, Economic Planning and Development as well as Ministry of Transport and Public Works.

It has come in the wake of government terminating and re-tendering the K3.9 billion worth Liwonde-Naminga Road project.

Reads the letter in part: “We would like to draw your attention to the fact that it has been more than 14 years since the first loan for the project was approved and only 25 percent were complete prior to their suspension in January 2009.

“Factors such as issues of compensation for removal of private properties along the road and cost overrun have caused major delays in the start-up of the project. Ofid experience with the implementation of transport sector projects in Malawi, especially in the road sub-sector, is not very encouraging.”

Ofid’s reaction was also in reference to the decision made by government last year to terminate contract for the Thyolo-Makwasa-Thekerani-Muona Road because government alleged the contractor demonstrated lack of financial muscle.

Ofid has since asked government to give a report from the consultant outlining the main features of the project based on the revised design.

In an interview, Minister of Transport and Public Works Francis Kasaila admitted a lot of hiccups in the road sector, but said government is doing all it can to ensure that there are right people on the ground.

He said: “For the Liwonde-Naminga Road, the contractor’s fee was too high and we have told him to rethink the rates. But on the other roads, [Thyolo-Makwasa-Thekerani-Muona Road] there were also issues to do with contracts and their performances, but the co-financiers are right, there has just been a lot of issues,” he said.

Over the years, most road projects in Malawi have never finished within set deadlines, doubling or tripling initial project costs.