Roads rehab in k126bn deficit
Road users should not expect the condition of battered roads to improve soon as Ministry of Transport and Public Works faces a K126 billion deficit for their maintenance and rehabilitation.
Briefing the Parliamentary Committee on Transport and Public Infrastructure in Lilongwe yesterday, the ministry’s Principal Secretary (PS) responsible for administration Madalo Nyambose said K24 billion was allocated in the national budget for road maintenance against the projected K150 billion.
The ministry was called to Parliament to give an update on the status of infrastructure projects in the country.
Nyambose said it was difficult to maintain roads most of which are in bad shape with the given funding.
She said: “The road network in the country is 15 500 kilometres [km] of which 4 500 km is tarmac. All these roads have to be assessed every year and see where there is need for maintenance. There is a lot of work that needs to be done.”
Nyambose lamented the economic challenges facing the country, saying it has affected infrastructure development.
She said: “Contractors are beginning to ask for revision of contract sums following the devaluation of the local currency by 44 percent. And our ministry is currently in negotiation with concerned contractors.”
However, PS could not say how many projects have been affected and how much the government will need to raise to bill the gap.
Chipping in, committee chairperson Enock Phale pledged to engage the Treasury to consider allocating more resources for road projects.
He said they will also push the Malawi Energy Regulatory Authority (Mera) to remit funds collected from the road maintenance levy in the petroleum price build-up.
Phale said the arrangement is that the funds should be remitted to Roads Fund Administration (RFA) within 52 days from the day of fuel importation, but noted that Mera takes time.
He said: “Timely remittance would have financed more road maintenance works that the public need most.
“Now with the realignment of the kwacha, the value of the money that Mera owes Roads Fund Administration has been reduced.”
In a separate interview yesterday, RFA spokesperson Masauko Mngwaluko said Mera was yet to remit K80 billion to RFA as of October 2023.
He said: “If the funds had been received timely, it would have financed more maintenance works than now, more especially, with the realignment of the kwacha which has reduced the spending capacity of the same amount.”
Mngwaluko said the Energy Act has no provision for writing off levy arrears, as such, all the outstanding balances will be in full.
Mera spokesperson Fitina Khonje asked for more time to consult on the matter.
Besides the road maintenance levy, RFA also collects toll fees on the M1 between Blantyre and Lilongwe where two toll gates were erected at Chingeni in Ntcheu and Kalinyeke in Dedza.
In November last year, Minister of Transport and Public Works Jacob Hara told Parliament that the government was struggling to carry out maintenance of roads because it has not been able to raise enough funds through the levy.
Meanwhile, there are 28 road projects worth about K439.8 billion and fears abound that taxpayers will pay more due to cost overruns as a result of delays in the executing projects.
