Mhango Blames Inadequate Fuel Levy Collections for Delayed Road Projects

Minister of Transport and Public Works Jappie Mhango has attributed delays in road construction and maintenance across the country to years of inadequate revenue collection through the fuel levy.

Speaking in Parliament on Thursday during question time, Mhango acknowledged that the roads sector is facing serious funding challenges, which have resulted in the deterioration of many roads and delayed completion of key infrastructure projects.

“We are not afraid to admit that for many years government was not collecting enough resources through the fuel levy to adequately finance road construction and maintenance,” he said.

The minister explained that the shortage of funds has affected both the rehabilitation of existing roads and the implementation of new road projects nationwide.

However, Mhango said the situation is gradually improving following the introduction of the Automatic Pricing Mechanism (APM), which has strengthened fuel levy collections by the Roads Fund Administration (RFA).

He disclosed that during the first quarter alone, the RFA collected K73 billion through the fuel levy, funds that will be used to maintain and rehabilitate roads across the country.

Mhango also said government has adopted innovative financing mechanisms to supplement resources, with commercial banks now supporting road infrastructure development through various financing arrangements.

He blamed the previous administration for creating financial challenges that continue to affect the sector but said the current government is steadily addressing the problems, although the process will take time.

The minister assured Members of Parliament that several road projects will soon be completed, including Kaunda Road and the M1 Road from Crossroads to the Old Town Hall in Lilongwe, following the release of funds by the Treasury to contractors working on priority projects.

Thursday’s sitting, which was dedicated to Private Members’ Day, saw legislators raise various development-related questions to different government ministries.

Meanwhile, the Parliamentary Committee on Health and the Public Accounts Committee also presented their reports to the House.