Parliament nods to K15bn grants for NSO, water project
Parliament has authorised the Treasury to receive two grants worth K15.02 billion from the International Development Association (IDA) of the World Bank and the African Development Fund (ADF).
During the sitting on Wednesday, members of Parliament (MPs) approved a grant worth 11 200 special drawing rights, an equivalent of $15 million (about K15 billion) to fund the Southern Africa Development Community (Sadc) regional statistics project designed to strengthen the institutional capacity of the National Statistical Office (NSO) to produce, disseminate and use quality statistics.
Addressing the House, Minister of Finance and Economic Affairs Sosten Gwengwe said the IDA grant would attract a commitment fee of 0.5 percent on all undisbursed funds
He, therefore, urged the lawmakers to ensure that all funds are disbursed at the end of the implementation period.
Parliament also approved a grant worth $23 000 (over K23 million) from the ADF to fund the Rumphi Water and Sanitation Services Improvement Project.
The project was created to increase access to potable water and quality sanitation services in the district and the surrounding areas through the upgrading of transmission line, the water treatment plant and construction of new storage tanks with a higher storage capacity.
The two bills passed without incident as members from both sides of the aisle supported the motions.
In his response, Zomba Central MP Bester Awali, who spoke on behalf of the opposition Democratic Progressive Party, said the grant will help NSO harmonise its operations and improve collaborations with other institutions in the region.
In an interview after the bills were passed, DPP spokesperson on Finance Ralph Jooma said he was happy that the government is using grants to finance its projects amid concerns on the country’s rising debt burden.
He said: “The most important thing is that the government is using grants which we will not have to pay back. We need to check the national debt which has grown to about K8 trillion.
“That is unsustainable. So, we are happy the government is using grants. This will alleviate pressure on government debt.”
Malawi’s debt stock currently stands at K7.9 trillion, or 75.7 percent of gross domestic product (GDP), which is about 15.7 percentage points higher than the 60 percent threshold recommended by global financial institutions.
The growing debt stock prompted the International Monetary Fund and the World Bank to downgrade Malawi’s risk of external debt distress from moderate to high.
