Mining & Trade News

Malawi President Lazarus Chakwera says his administration is determined to scale-up transport infrastructure development projects in the country in order to attain job, wealth and food security creation agendas.

Chakwera cited in his speech themed   “Accelerating the Change Malawians Fought For” presented when he opened the third meeting in the 49 session of parliament and the 2021/2022 budget meeting in Lilongwe.

The president explained that improved transport infrastructure is part of the three delivery accelerators that the current administration will invest time, resources, and energy in to speed up the realization development agendas.

Chakwera said: “Transport infrastructure and public works has been identified as an accelerator of economic activities. There can be no exchange of goods and services without transport infrastructure.”

“In the next financial year, my Administration will commence construction and rehabilitation of several road projects including:  Expansion to dual carriageway of the M1 road from Crossroads Roundabout to Alimaunde in Kanengo, Lilongwe at a total cost of US$25 million through a grant from the People’s Republic of China.”

He also announced that government intends to expand to dual carriageway M1 Road Section between Lilongwe Hotel and Lilongwe CCAP estimated to cost about US$ 30 million with a grant from the Japanese Government and the stretch between Lilongwe Hotel and Crossroads Roundabout will be financed locally.

Government is also planning to rehabilitate M1 Road from Kamuzu International Airport Junction to Mzimba Turn Off and from Kacheche to Chiweta at an estimated cost of 195 million Euros co-financed by the European Investment Bank and the Malawi Government as well as Nsipe – Liwonde Road at an estimated cost of US$30 million financed by the African Development Bank.

Chakwera said: “My Administration will use part of the MK1 trillion Infrastructure bonds which will be raised on the local market to rehabilitate and upgrade eight roads.”

Among the roads to be refined from infrastructure bonds include; Nsanje – Marka Road – Completing upgrading to paved 28 kilometres; Dzaleka – Ntchisi – Mpalo – Malomo Road upgrading to paved road covering a distance of 70 kilometres and the M5 Balaka Market – Kaphatenga – Dwangwa Mukwiya (Nkhatabay) – rehabilitation covering a distance of 469 kilometers

“We will also commission the design and construction of the other stretch from Edingeni- Kamchocho-Euthini-Mpherembe-Rumphi as this road has a huge significance in this agricultural rich area,” he said.

On rail transport, the President stressed that his administration will resuscitate the Sena Corridor Railway from the Port of Beira in Mozambique to Limbe in Blantyre. The project will involve rehabilitation and upgrading of the 201 kilometre Limbe – Marka railway section.

Chakwera said: “The funding for these 40 works will also come from the MK1 trillion Government bond. In addition, my Administration will prioritize the construction of the Salima-Tunduma Railway-line under the Build Operate and Transfer Model following review of the relevant laws to make this happen.”

“Meanwhile, a feasibility study of this railway will start as a matter of urgency. Still on railway lines, we will also commence construction of a 170 metre long Rail – Road bridge across the Ruo River.”

On water transport services, the President announced that government will finalize the construction works on a MK10 billion Port at Likoma Island which will include a landing facility at Chizumulu Island.

He also said his government is planning to resuscitate local aviation industry through establishment of the Malawi Civil Aviation Authority to regulate the air transport sub – sector.

“We will have a fully-fledged Civil Aviation Authority by June 2022, my administration is determined to bring back the glory that our flagship airline once enjoyed and we will recapitalize Malawi Airlines.”

Meanwhile government is revising the National Construction Industry Act of 1996 and its subsidiary regulations to be in line with African Union’s Agenda 2063 and the Africa Continental Free Trade Area.

Government is expected to enforce Malawian construction firms Order of 2014 which requires foreign firms to either partner in a Joint Venture arrangement or subcontract at least 30 percent of the works by volume or value to local Malawians.

Malawi’s Roads Authority (RA) is inviting eligible consultants to supervise the rehabilitation and widening of four sections of the M1 road between capital city Lilongwe and Northern Region town of Karonga.

The project will, which will involve the rehabilitation of a total of 301km of the M1 road, will be financed using proceeds of a loan from the European Investment Bank (EIB) and a grant from the European Union (EU) under the Africa Investment Facility.

The four targeted sections include; from the turn off to the Kamuzu international airport to kasungu (102 km); from Kasungu to Jenda (85.5 km); from Jenda to Mzimba turn off (46.74 km) ; and Kacheche to Chiweta (66.5 km).

The works will include the widening of carriageways, construction of shoulders, reconstruction of the pavement, widening of bridges and implementation of road safety interventions.

“The primary objective of the consultancy services is to simultaneously carry out the supervision of the rehabilitation and widening works on all four sections of the works including technical and financial supervision, contract management and to ensure that the works are carried out in accordance with the respective contract specifications and to the satisfaction of the implementing agency,” says RA in a statement.

It states that each section will have a defects liability period of 12 months during which limited input will be required by the consultant.

The contract for the provision of the consultancy services is expected to start not earlier than May 1, 2021 with an estimated total duration of 44 months (inception phase of 2 months, construction period of 30 months and defects notification of 12 months).

RA says the invitation for expressions of interest is open to all firms and joint ventures from all countries, and shall be followed by the production of short-listed consulting firms.

“The short-listed firms will be formally invited to submit technical and financial proposals, which shall be evaluated. Award of the contract shall be made on the basis of the most economically advantageous tender (MEAT),” states RA.

Government has confirmed that criminal locomotives attacks have contributed to low usage of the Nacala Corridor, a railway line that transfers goods between Malawi and Mozambique’s Indian Ocean Nacala Port opening access to regional and international markets.

Andrew Nthiko, spokesperson for Ministry of Transport and Public Works admits that despite rail transport being cheap and the Nacala Corridor being revamped, traders prefer using the Beira Port that has no rail route to import goods into Malawi.

The spokesperson says government has devised strategies to ensure safe and secure movements of people and goods on the Nacala rail route.

“We have introduced a toll-free line – 1718 – where any type of vandalism and theft can be reported to relevant authorizes,” Nthiko said.

He adds that government and the Central East Africa Railway (CEAR) has also identified hotspots of theft along the rail and placed cameras for easy tracing.

In a bid to facilitate continued use of the Beira Port, Nthiko says that the Malawi and Mozambique governments have agreed to extend the Limbe-Makhanga-Mutara railway line to the Sena line.

 “CFM of Mozambique has already secured funds to construct their 45 Kilometer line from Mutara. On the other hand, we have tendered for rehabilitation works for reconstruction of line from Marka to Bangula,” he says.

Nthiko further says that with the rehabilitation of the Nacala Corridor, government is optimistic that importers and exporters will start prioritizing rail transport when transferring goods.

“We hope to see people change their attitudes towards this mode of transport,” he explains.

Malawi is a landlocked country. As such, improving regional transport network is a necessary condition for both the country’s competitiveness as well as for improved regional and global economic integration.

Malawi’s rail operator Central East African Railways (CEAR) says it is making substantial progress in the the rehabilitation exercise for the Limbe-Makhanga railway line that was damaged by devastating floods in 2015.

CEAR Spokesperson Chisomo Mwamadi said in an interview that contractors who are working on re-installing the railways have completed 50% of the works.

Mwamadi explained that Limbe-Luchenza stretch of the railway is expected to be finished by April 2021.

He said CEAR has planned to rehabilitate a 72 km rail stretch from Limbe to Sandama while the rest of the line will be rehabilitated by the government.

Mwamadi said the Limbe-Luchenza rail rehabilitation exercise was divided into two phases with Phase 1 covering Limbe to Nansadi segment now 75% completed and Phase 2 covering the Nansadi-Luchenza stretch which is at 50%.

The works underway involve placing of ballast, replacing of bridge wooden sleepers, temping and bridge works at Nansadi.

Other works will include earthworks, installation of rails and track assembly.

Mwamadi, however, bemoans the impact of the coronavirus (Covid-19) pandemic saying it resulted in a five-month suspension of the works which has weighed in on the scheduled completion period.

He, nonetheless, said that CEAR has put in place strategies to speed up the rehabilitation exercise which will open up business in areas along the railway, which is a cheaper mode of transport compared to road transport currently widely used in Malawi.

The Directorate of Road Traffic and Safety Services has warned that it will revoke road service permits as well as deregister from its system taxis that are operating as intercity public service vehicles describing the trade as unlawful.

In a press release dated 25 September, 2020, the Directorate also says all drivers found on the wrong shall have “their professional driving permits revoked and subsequent offences suspended or cancelled.”

“The Directorate has noted with dismay that most taxis are operating as intercity public service vehicles which is against the Road Traffic Act (1997) and Road Traffic Regulations (2000). The regulations restrict operation of taxis within the cities or towns.”

The Directorate has also appealed to the travelling l public not to compromise their safety by avoiding the use of these taxis since they operate illegally, exceed the allowable seating capacity, they are fond of over speeding, and their insurance does not cover operation of such vehicles and their passengers.

The vehicles known to be doing this kind of illegal operation include Sientas, Voxys, Noahs, Hondas, Serenas and other similar vehicles.

The influx of taxis in major routes such as Blantyre-Lilongwe and Blantyre-Mzuzu is posing strong market competition to big buses, which are registered to ply these routes.

The Malawi Government says it is keen to revive rail transport as one of the main transport modes for the country.

Spokesperson for Ministry of Transport and Public Works Andrew Mthiko says currently the Government is working closely with the concessionaire Central East African Railways on the rehabilitation of railway transport facilities along the Nacala Corridor including train stations at Nkaya, Balaka, and Mchinji.

“I can also assure Malawians that the idle Limbe-Marka railway line will start functioning soon since rehabilitation and reconstruction works are underway between Limbe in Blantyre and Marka in Nsanje,” Mthiko said.

Malawi has a multi-modal transportation system comprising of road, rail, air and inland water transport. Most of the key infrastructure for the road, rail and inland water transport modes forms part of one or more of the international corridors used for the transportation of international freight including Nacala, Beira, Durban and Dar es Salaam. 

The national rail network covers central and southern parts of the country including the newly built line Nkaya to Kachaso (west) which is 136.5 kilometres long.

The other rail lines include Nkaya to Nayuchi which is a 99km stretch to the Eastern border with Mozambique, Nkaya to Limbe to Makhanga (South) which is 297 km, and Nkaya to Mchinji or Chipata (North and northwest).

The entire route is around 400km which comprises of 12km section between Chipata and Mchinji; 110km between Mchinji and Kanengo; 105.5km between Kanengo and Salima; and 172km section between Salima and Nkaya. The line terminates around 389km from the Tazara line and around 150 km from the Petauke mine in Zambia. The line loading capacity is 18 tonnes between Chipata and Salima, and 15 tonnes per axle between Salima and Nkaya.

Malawi mainly uses road transport which is more expensive that rail and water transport.

Malawi’s Ministry of Transport and Public Works has issued new regulations on public transportation as one way of preventing the spread of the global coronavirus pandemic.

This development comes barely a week after the Malawi government declared a national state of disaster and banned gatherings of more than 100 people.

The Ministry has set out some limitations and directives to public transportation on water, rail, road and air.

On rail transport, the Ministry has limited the number of passengers in the economy class section from 90 to 40 and from 52 to 28 passengers for the business class. Road transportation service providers have been directed to reduce the number of passengers to 60 % and water vessels are to reduce passenger capacity to 50%.

According to the press release signed by the Minister of Transport and Public Works Ralph Jooma, all international flights are suspended effective April 1, 2020.

“All international flights are suspended effective 1st April 2020 except for those aircrafts carrying health personnel, essential health equipment, emergency relief items, returning residents and cargo,” reads the press release

All public transportation service providers have since been directed to disinfect their cars and vessels before the commencement of any trip and to make sure that passengers wash hands before boarding a ship, bus or train.

The Ministry has further directed public transport service providers to have all their crew wear protective face masks and not to allow passengers carry any animals on any public vehicles.

Meanwhile, the ministry has also said that no public transportation service provider should allow any passenger showing general symptoms of COVID-19.

“Those with common flu and showing general symptoms of COVID-19 should not be allowed to use any public transport service,” says Jooma.

He says government inspectors have been deployed to enforce the implementation of the measures.

The Ministry of Finance, Economic Planning and Development says it will in April this year start implementing the Enhanced Public Works Pilot Programme (EPWP) under Phase IV of Malawi Social Action Fund (MASAF) project.

The Ministry will implement the eight months’ programme through the National Local Government Finance Committee.

Executive Director of the National Local Government Finance Committee Alufeyo Banda explains in a Press Statement that Malawi Government will implement the public works programme with funding from the World Bank and the German Government through the German Technical Cooperation(GIZ).

Banda states that the objective of EPWP is to enhance the effectiveness of the regular public works programme which was implemented in 35 Local Authorities in the country by addressing key challenges faced during the implementation works.

He says some of the challenges include; lack of capacity for frontline staff which affected their ability to deliver quality supervision, non-adherence to sector norms and standards which led to poor quality community assets, lack of community ownership for public works programme assets and inadequate supervision and monitoring of resources by council officials.

The public works programme will be piloted in 10 districts of Blantyre, Balaka, Chiradzulo, Chitipa, Dowa, Karonga, Kasungu, Lilongwe, Nkhotakota and Phalombe.

In selecting the districts, the pilot considered several factors including poverty levels and food security, degree of land degradation and availability of the Unified Beneficiary Registry (UBR) data.

“The targeted number of the EPWP is 10,000 participants in a phase in all the 10 districts with 1,000 participants per district. The 1,000 will be selected from 5 micro-catchments in each of the 10 districts with every micro catchment not exceeding 230 acres,” Banda says.

The EPWP will focus on land resources conservation as its aim is to contribute towards conserving natural resources.

Participants will work for 12-days a month and receive a safety net wage paid bi-monthly.

In addition, 4000 beneficiaries will be linked to sustainable livelihoods interventions to enhance their capabilities.

“Sustainable livelihoods interventions will be implemented through a strategic linkage to the Community Savings and Investment Promotion Programme (COMSIP) and the District Community Development Office in the pilot districts,” says Banda.

Government is advancing with preparations to start rehabilitation of part of M1 Road from Kamuzu International Airport road junction to Mzimba Turn-Off, and the Kacheche-Chiweta section.

Minister of Finance, Economic Planning and Development Joseph Mwnamveka announced in his presentation of the mid-year National Budget Review that Government has finalized financing agreements for the road project totaling K140 billion with the European Investment Bank and the European Union (EU).

“Works on this road are expected to commence anytime soon as procurement of the contractor is at an advanced stage,” said Mwanamveka. 

He also said government has signed a 27.2 Million units of accounts loan agreement with the African Development Bank (AfDB) for the Liwonde-Nsipe road project, which is part of the Nacala Road Corridor Project, and procurement of a contractor for the road project is underway.

He said government allocated $47.9 billion to Roads Fund Administration for the completion of various road projects.

“I wish to emphasise that the focus of Government is to provide resources to finish existing projects rather than embarking on new ones,” he said.

The Minister reported significant progress on the Njakwa-Livingstonia road where completion of the second phase is expected to end by June this year.

Other road projects in progress include Ntcheu-Tsangano- Neno- Mwanza road which is expected to be completed by October this year and Nkhotakota- Dwangwa road rehabilitation expected to be completed by September this year.

Government is also in discussions with a number of donors for the financing of the Salima -Nkhotakota road, Jenda – Edingeni road, Mangochi – Makanjira road, the Lirangwe -Chingale – Machinga -Liwonde road, the Nambazo – Nasiyaya – Mswang’oma road, the Nkando – Mulomba – Phalombe road, and the Balaka – Chilipa – Mangochi road, among others.

Among other infrastructure developments, Mwanamveka said government has signed

loan agreement of US$90.0 million with the World Bank for the Equity with Quality and Learning at Secondary Schools Project.

“The project has already commenced,” he said.