Millennium Challenge Account Malawi II (MCA-M II) has signed implementing entity agreements with key partners responsible for executing the compact’s transport component, signalling roll out of the $350 million (about K612 billion) transport and land compact.
The signing of the agreements in Lilongwe yesterday formalises partnerships to improve over 300 kilometres (km) of roads across four strategic corridors.
The compact requires MCA-M II to finalise the agreements with all implementing entities before the funds are released.
The project will, among other improvements, upgrade to paved standard an 83km Mkanda-Linga corridor in Mchinji, 53km Chileka-Likuni corridor in Lilongwe, 77km Chantulo-Mkutumula corridor in Balaka and Mangochi and 67km Euthini-Chikwawa corridor in Mzimba and Rumphi and spot rehabilitation of the 57km road between Golomoti and Monkey Bay Turn-Off in Mangochi District.
Speaking during the signing ceremony, MCA-M II chief executive officer Dye Mawindo expressed optimism that when completed, the four road corridors will improve access to markets and other strategic zones, thereby paving the way for socio-economic empowerment in the project areas.
He said: “We have locations such as Chantulo, which have arable and productive land, but are underutilised because farmers do not have access to markets.
“If we can improve the roads, access will improve, transport costs will go down and smallholder farmers will have better economic prospects.”
Mawindo said rehabilitating the Golomoti -Monkey Bay Turn-Off section will also boost the tourism sector by connecting Lilongwe and other key tourism sites in Mangochi as well as other lakeshore districts.
He, however, said there is need for coordination with other key stakeholders such as the Competition and Fair Trading Commission to ensure that transporters offer competitive rates when the projects are completed.
Ministry of Transport and Public Works director of roads Kelvin Mphonda, whose ministry is a key implementing partner, said the signing sets the foundation for resource deployment and the initiation of projects critical to enhancing the nation’s transportation infrastructure.
He said the project could experience some cost overruns following concerns that the prices quoted in the initial project three years ago might be lower than the required costs.
But Mponda said this is normal for long-term projects.
Roads Authority board chairperson Matilda Matabwa said they intend to use the project’s first phase to determine the real value of the construction works and revise the cost accordingly.
“We are confident that when we approach Millennium Challenge Corporation [MCC] with the revised figures, they will be willing to accommodate us,” she said.
The MCA-M II will begin reviewing bids next month with construction works expected to start early next year. All construction works are expected to be completed within 30 months.
The transport and land compact is also expected to improve the housing conditions of the people who will be affected by the construction project.
MCA-M II has set aside $5.6 million (about K10 billion) to compensate affected individuals by either rebuilding their structures and compensating them for land losses or offering cash compensation.
MCC, a US government agency created by the US Congress in January 2004, provides grants and assistance to developing countries that meet set requirements.
The first $257.1 million (about K450 billion) MCA compact in Malawi focused on transforming the country’s power sector in three areas, namely the Infrastructure Development Project, the Power Sector Reform Project and the Environmental and Natural Resource Management Project.
