Business and Finance

Weak Kwacha to hurt Salima- Lilongwe water project

Weak Kwacha to hurt Salima- Lilongwe water project

By Wezzie Gausi:

Fluctuation of the Malawi Kwacha is said to affect the cost of the Salima-Lilongwe Water Project, if the money were to be paid in local currency, the Parliamentary Committee on Natural Resources and Climate change has warned.

The project, which will be implemented by Khato Civils, was pegged at $313 million.

In an interview after touring the project site, committee chairperson Werani Chilenga said the committee was, however, impressed with the progress.

However, he said the only challenge will be the cost to the government, as devaluation increased the amount that is to be paid in local currency.

“So far so good, the implementing company has finalised the mobilisation of equipment to be used at the project. All things being equal, with enough funding, they told us that construction works may start soon,”Chilenga said.

Chief Executive Officer for Salima- Lilongwe Water Supply Company Valentine Kaupa assured the committee that the project is now registering positive progress on its key performance indicators of cost, schedule and quality

“Overall, the project is on track to deliver quality water to Lilongwe City, Salima and Dowa districts within the project cost, time and high standard. We are progressing well. Mobilisation is almost complete and the actual construction is expected to start in November 2024,” Kaupa said.

The government, through the Salima- Lilongwe Water Supply Company, is implementing the project to increase water availability for Lilongwe City, Salima, and Dowa districts for socio-economic development and to strengthen the capacity to respond to adverse climatic conditions and ensure sustainability of water supply.