Govt of Malawi and Kuwait Fund Sign a Road Construction Project Agreement0 Comments

By admin
Posted on 21 Nov 2013 at 4:16pm

malawi roadThe Malawi Government and the Kuwait Fund for Arab Development on Tuesday signed a financing agreement in form of concessional loan for the construction of the much-awaited Lirangwe-Chingale-Machinga Road . The signing ceremony took place on the sidelines of the 3rd Africa-Arab Summit, which opened on Tuesday, November 19, 2013 , in Kuwait . The State President Dr. Joyce Banda witnessed the signing of the US$10.2 million agreement. The agreement was signed, on behalf of the two parties, by Malawi’s Deputy Minister of Finance, Dr. Cornelius Mwalwanda and the Kuwait Fund for Arab Development , Director General, Abdulwahab Al-Bader . In her sentiments, the State President, Dr Joyce Banda said she was extremely delighted to witness the signing of the agreement which she said would go a long way in transforming lives of the people after the construction of the road. “It’s a dream come true; the people of these areas have suffered far too long and to imagine that the current earth road will be upgraded into an all weather bituminous road, which would facilitate smooth movement of goods and people, is more than gratifying. Due to the poor condition of the current road, most of the produce, including rice, sugarcane, cassava and maize, is not transported to the markets at the right time leading to loss of value and money,” she said. The Head of State said the tarmac road shall reduce travel time, particularly when the sick want to seek expert medical attention in Zomba, Machinga or Blantyre and that transportation costs and fares will also be competitive due to increased transport availability. Deputy Minister of Finance, Dr. Cornelius Mwalwanda said the implementation of the project shall contribute to the promotion of cross-border trade, tourism as well as the creation of employment due to increased economic activity along the road. On his part, the Kuwait Fund for Arab Development Director General, Abdulwahab Al-Bader said the project comprises civil engineering works of a bituminous road with a total length of about 62.3 kilometres; 6 metres carriage way and “asphalted shoulders of about 1 metre on each side. “The Project also involves construction of drainage facilities, bridges, erosion controls and traffic safety facilities. The Project also includes Consulting Services for revision and detailed designs and supervision of construction and it is expected to be completed by the end of 2014,” he said. The Total cost of the project is estimated at about MK18.026 billion. The funds provided by the Kuwait Fund for Arab Development will cover about 20.9 percent of the total cost of the project. The Saudi Fund for Development and the Arab Bank for Economic Development (BADEA) will provide funds amounting to 20.5 percent of the total cost each. The OPEC Fund for International Development and the Abu Dhabi Fund for Development will each provide 14.4 percent of the total cost, while the Government of Malawi will meet the remaining percentage. This is the seventh loan facility provided by the Kuwait Fund to the government of Malawi .

 

For more stories on investments and markets, please see HispanicBusiness’ Finance Channel

Read Also
Advertisement

Leave a Reply