European Investment Bank gives nod to €117 million development project

By Durrell Namasani

It’s development galore as the Chakwera administration has had some good news in it’s efforts to develop the country.The European Investment Bank (EIB) on Wednesday 1st June, 2022, finally gave its “No Objection”nod on the M01 Road Rehabilitation Project.

According to a statement made available to 247Malawi News and signed by Kelvin Sato, public relations officer for Minister of Works Hon Jacob Hara, His Excellency Dr. Lazarus McCarthy Chakwera will on 5th July 2022 lead Malawians in a ground-breaking ceremony, kickstarting the project.

The Statement highlights that The following contractors have been awarded related contracts to execute the following project:

1. From KIA Junction upto Kasung Boma: China Jiangxi International_ together with _Jiangxi Transport Ltd

2. From Kasungu Boma upto Jenda: Mota Engil

3. From Jenda upto Mzimba Turn Off: Unik Constuction Engineering (Pty) Ltd.

4. From Kacheche upto Chiweta: China Henan International Co. Ltd.

Transport and Public Works Minister Hon Jacob Hara

Many Malawians have welcomed the news with Many describing the groundbreaking development as a testament that the Chakwera administration is serious about developing Malawi.

According to European Investment Bank, The M1 road is an important link in the North South Corridor network of COMESA. It is the backbone of the Malawi road network. The road facilitates regional trade with Mozambique in the South and further beyond to the countries of the SADC

The project is therefore of high priority for the Government as part of the Malawi Growth and Development Strategy. The need for rehabilitation and improvement arises from increased levels of traffic, high presence of pedestrian and bicycle traffic and because the overall condition of the road pavement is either nearing or has reached the end of its serviceable life. Rehabilitation and improvement of the almost 1,145 km will be undertaken in phases.

The rehabilitation of the M1 road is also important for the EU efforts to improve rural roads to allow smallholder farmers access wider markets. This will strengthen food security and links to agro-processors, which in turn contributes to sustainable agriculture and income growth among the predominantly poor rural population.

The EU contribution will co-finance, alongside the EIB loan, civil works and thus increase the concessionality of the financial package.