China Bringing Huge Investments, Grants To Malawi

Malawi is again to benefit from bilateral relation with Government of Peoples Republic of China following seven Investment projects to be carried out soon and number of grants worth of Millions.

President Professor Peter Mutharika disclosed during the news conference on Wednesday at Kamuzu Palace in Lilongwe that China is bringing investment to Malawi following his recent meeting with the Prime Minister of the People’s Republic of China, His Excellency Mr. Li Keqian, on 10^thSeptember this year, on the sidelines of the World Economic Forum that was held in the beautiful city of Dalian.

In his announcement, however, President Mutharika indicated that the Chinese Government approved for immediate implementation three projects while four projects will be subjected to further review and that a team of experts will be visiting Malawi before the end of December this year to discuss the technical aspects with their counterparts.

The Malawi leader disclosed that China has approved implementation of The 300 Megawatt Kam’mwamba Coal Fired Power Plant which he said will take three years to complete.

“This project is aimed at increasing the power generating capacity of Malawi to meet the ever increasing demand. The project cost is estimated at US$667 million.” He said adding “After completion we will say goodbye to power outages that we are experiencing!”

He then announced another US$50 million project called The E-Government (National Identity) Project. The Fibre Back-bone component of the project which will lay the fibre optic cables to increase internet connectivity, the second component of the National Identification Project, however, will be subjected to further discussions.

The third project he said is the Chileka International Airport “Before implementation commences, the Malawi Government will redesign the project, conduct feasibility study and an Environmental Impact Assessment. The total cost of the project is estimated at US$285 million” said Mutharika

The projects that are four projects subjected to further review are: the 140 Km Tsangano – Neno – Mwanza Road which is estimated to cost US$169.4 million; the 129.5 Km Mangochi – Makanjira Road expected to cost US$151.7 million; the Upgrading of the Phombeya – Makanjira– Nkhotakota – Chatoloma 220 KV Power Line valued cost at US$189; and The Lilongwe Dual Carriage Way from Kanengo – Mchinji Roundabout on the M1 Road to cost US$45 million.

President Mutharika has promised the nation that in all these projects a lot of Malawians will not only benefit by having the projects in their areas, but also will get jobs.

He then announced that the Chinese Government provided and signed with Malawi in January this year US$25 million grant whose Financing Agreement was signed in January 2015; and US$8 million grant interest-free loan.

He also mentioned that China has provided US$25 million whose Financing Agreement is being prepared for signing.

He then also disclosed that the Chinese Government agreed to disburse the two grants. He said the first grant is for the Construction of the Blantyre District Hospital and Cancer Centre in Blantyre at Kameza costing US$23; and Procurement of police vehicles for the Malawi Police Service costing US$2 million.

The second grant is a total sum of US$23 million for six projects which includes; Construction of a Technical Teacher Training College, Promotion of value addition activities for the Ministry of Industry and Trade and Support for technical services for the Bingu National Stadium constructed with the support of the Chinese Government.

“We thank the Chinese government for the support it is rendering to Malawi. This only signifies the strength of the bilateral relationship that exists between the two Governments.” Said Mutharika who mentioned more than once in his statement that his government will continue to impalement projects that are to support the Malawi economy.