RFA pays contractors, stalled projects resume

Roads Fund Administration (RFA) has paid concerned contractors part of their outstanding payments worth K14 billion,.

The payments have since triggered a resumption of works on most stalled projects.

Speaking on behalf of the concerned contractors who last month petitioned RFA demanding payment, their spokesperson Stanley Gwaza said the development followed a disbursement of funds from the authority.

He said most contractors have now received payments and have returned to their respective sites. Delays in disbursement of funds affected about 50 contractors.

Said Gwaza: “The contractors were handling projects in various parts of the country and the expectation is that RFA will keep clearing the certificates so that works are not affected.

“Of course, we have not checked with RFA regarding assurance for steady cash flow. We will engage them to give us assurance that they will continue to honour payments for certificates.”

Malawi Building and Civil Engineering Contractors and Allied Trade Association (Mabcata) president Wickly Mhango said it will take time for things to normalise in the construction sector in terms of payments because RFA has not been able to access road levies for some time.

RFA spokesperson Masauko Mngwaluko asked for more time to comment on the matter.

However, RFA earlier indicated that it was struggling to pay contractors because Malawi Energy Regulatory Authority (Mera) delayed remittance of road levy.

Mera chief executive officer Henry Kachaje did not pick up his phone when called for comment yesterday, but he is on record as having said Mera would start remitting the funds to RFA within the month of June.

In November 2023, Minister of Transport and Public Works Jacob Hara told Parliament that government was struggling to do maintenance works on roads because it was not able to raise funds through road levy.

Earlier this year, Ministry of Transport and Public Works officials also told the Parliamentary Committee on Transport and Public Infrastructure that the country needs over K150 billion per year for road maintenance, but that what is provided is way below the required amount.