Reserve Bank of Malawi (RBM) says delayed submission of payment certificates has stalled payment in euro to contractors rehabilitating the 302-kilometre (km) M1 section between Kamuzu International Airport (KIA) junction in Lilongwe to Rumphi.
In an interview yesterday, RBM spokesperson Boston Maliketi Banda confirmed that the central bank received instructions from Treasury to pay the contractors in foreign currency, but could not act without the required documentation.
on the road.
“We received instructions to pay in forex, but we are yet to receive certificates for payment,” he said.
The Nation had earlier yesterday contacted Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha for an update, but he referred the matter to the central bank.
In mid-February, the minister committed that contractors would be paid in euro under an off-budget arrangement.
By February this year, outstanding payments stood at 1.3 million euro (about K2.7 billion) for Lot 2, 1.7 million euro (about K3.6 billion) for Lot 3 and 2.8 million euro (about K5.9 billion) for Lot 4, excluding interest on delayed settlement.
Meanwhile, contractors working on the three sections have since withdrawn their services over non-payment in a move that threatens timelines on the 302km project which has seen about 170km completed.
In a separate interview, the Roads Authority said payment issues fall under the Roads Fund Administration, but confirmed ongoing engagements with Treasury and RBM to resolve the impasse.
Roads Fund Administration spokesperson Masauko Mngwaluko asked for more to consult on the matter.
The project, financed with support from the European Investment Bank (EIB), is being implemented in four lots by international contractors.
