Parliament authorize govt to borrow K20.5bn for rehabilitation of Lakeshore M5 Road
The Parliament has on Monday passed a bill authorising the government to borrow a loan of K20.5 billion from the OPEC Fund to rehabilitate the M5 from Benga to Dwangwa in Nkhotakota.
Presenting the motion on the Bill in the house, Minister of Finance, Sosten Gwengwe said the Road has the economic benefits to the country.
Gwengwe said the loan which has an interest of 1.5 per cent annually and the project will be jointly funded by African Bank, and the Malawi Government.
Gwengwr added that loan will be used to change single to double lane bridges.
“We need to pay attention to Road infrastructure if we really need to develop. Good road infrastructure facilities movement of people, goods hence enhancing trade in the country in the country and across the boarder.
“M5 is a regional corridor which connects Tanzania, Malawi and Mozambique, ” said Gwengwe.
Member of Parliament for Nkhotakota North, Henry Chimunthu Banda said the rehabilitation of the M5 Road will boost infrastructure and facilitate trade.
“Since resources that we have approved today amount to USD20m out of the USD121m we have asked him to extradite the additional resources, ” said Banda.
Meanwhile, Democratic Progressive Party Parliamentarian for Blantyre North, Francis Phiso has tipped the government to avoid the excessive borrowing.
“I was also wanting to cushion the government to take extra care in borrowing because I feel like some of these roads, we can upgrade using our tax money,” said Phiso.
The objective of the rehabilitation of M5 Road is to enhance socio-economic integration between Malawi, Mozambique and Tanzania through Nacala Corridor.