News Column

Government and ADB Signs Loan and Grant Agreements Worth Mk41.6 Billion

August 4, 2014

Lydia Kalonde

The African Development Bank Group (ADB) has given Malawi Government loans and grants amounting to MK41.6 billion (US$104 million) to finance three major new operations in Road Infrastructure and Agriculture.

The signing ceremony which took place in Lilongwe Thursday this week was facilitated by Minister of Finance, Economic Planning and Development Goodall Gondwe and ADB Resident Representative Dr. Andrew Mwaba.

Speaking at the ceremony, ADB's Resident Representative said the signing of the agreements demonstrated commitment the bank has in supporting Malawi's' efforts to achieve inclusive growth and sustainable development.

Mwaba explained that the Nacala Road Corridor Development Phase IV Project will be financed with concessional African Development Fund resources worth MK24.9 billion (US$65.25 Million) as well as a grant of MK37.6 million (US$0.94 million.

"These resources will be used to rehabilitate a 75 km road between Liwonde and Mangochi, establish One Stop Border posts between Malawi, Mozambique and Zambia which will facilitate cross-border trade among the three countries," he said.

He added that Malawi will receive MK9.2 Billion (US$23 million) from the ADB Fund and MK3.2 billion (US$8 million) from the Nigerian Trust Fund (NTF) in concessional loans and also a grant worth MK1.9 billion (US$4.76 million) from the Rural Water Supply and Sanitation Initiative Trust Fund to support the implementation of the Sustainable rural Water and Sanitation Infrastructure Project.

According to Mwaba the project will be implemented in five districts of Rumphi, Nkhotakota, Ntcheu, Mangochi and Phalombe to improve health outcomes through increasing coverage of clean water and sanitation to more than half a million people.

He further added that this new project aims at freeing women and the girl child from the burden of fetching water from distant and dangerous rivers so that they can productively deploy their time in economic activities and school.

The ADB Representative highlighted that the bank through the African Water facility Trust Fund has also approved a grant amounting to Euro 1.79 Million to support the technical feasibility studies for the Shire Valley Irrigation Project which will help government of Malawi design projects to support its objective of expanding irrigated agriculture in the Lower Shire Valley.

He then urged government to speed up the procurement process for consulting firms and contractors to rapidly execute the various projects and studies that the bank is implementing and to timely complete the projects as delays in implementation are costly to the beneficiaries.

In his speech, Minister of Finance, Economic Planning and Development, Goodall Gondwe said the projects are highly beneficial to the economic growth of the country and will do their best to use the resources given for their intended purpose.

Gondwe said the Nacala Road Development Corridor Phase IV Project is very beneficial as it will link Liwonde and Mangochi which have major tourism places.

He also commended the support in Sustainable Rural Water and Sanitation Infrastructure Project which he said will boost irrigation farming and improve the sanitation of water in the country.

The Minister then assured the ADB that he will see to it that the projects will be implemented successfully and on time.

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Source: AllAfrica

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