The National Assembly passed on Tuesday afternoon two loan bills for the Mzimba Integrated Urban Water and Sanitation Project.
The House authorises OPEC Fund for International Development Loan worth K8 billion whose payment plan is 20 years and within it is 5 year grace period with 1% of interest per year.
Later, the House was presented with another Loan Authorisation Bill amounting to K2.7 billion (US$ 2.6 Million) from African Development Bank for the same Project whose payment plan is 40 yeas with 10 years grace period.
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Presenting the bill, Minister of Finance, Goodall Gondwe said the project will be implemented for a period of 4 years, to cost a total sum of US$22. 8 million and will be co-financed by OPEC, African Development Bank (ADB) and Government.
He said OPEC is providing 65% of the total cost, ADB will provide 22% while Government is expected to make 13% contribution.
While supporting the bill, Malawi Congress Party (MCP) shadow Minister of Finance, Alexander Kusamba Dzonzi expressed disappointment the borrowed money is not enough to completely end water problems for Mzimba district.
Dzonzi said MCP would have loved to see government borrow US$55 Million which is actual amount that is required to Carter water challenges in Mzimba
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