Mining & Trade News

The Japanese Government will finance the long awaited construction of a dual carriage way from Lilongwe Hotel to Lali Lubani Road Junction.

CEO for Lilongwe City Council John Chome says in a statement that the Council in conjunction with the Ministry of Transport and Public Works and the Roads Authority have started the process to remove structures, trees and relocation of services such as water pipes, sewer lines, Electricity Supply Corporation of Malawi (ESCOM) poles, street light poles and telecommunication cables, that are in the path of the road expansion project.

The Government wants to turn the section of the M1 road in the city of Lilongwe into a dual carriage way in order to overcome the problem of traffic congestion in the Capital City.

The plan to construct of the dual carriage way comes after Government completed the construction of the Lilongwe City West By-Pass road, which was constructed with financing from the African Development Bank with a similar aim of reducing congestion in the City.

The Japanese Government also financed the expansion of the Chipembere Highway in Blantyre into a dual carriage way.

The European Union (EU) says Malawi needs to invest more in the transport sector if the country is to realise advancements in economic transformation.

Head of EU Delegation to Malawi, Sandra Passen, said poor road conditions pose a serious threat to international trade, local business development and Malawi’s overall economic growth.

The Ambassador was speaking at a signing ceremony of a K34 billion Loan Agreement between the European Investment Bank (EIB) and Malawi Government for the M1 Road Rehabilitation Project.

The road project, starting from Kamuzu International Airport junction in Lilongwe to Mzimba Turn Off targets rehabilitation of 301km of priority sections of the road identified as having the highest impact in facilitating trade, eliminating bottlenecks, and reducing road fatalities.

It will serve to enhance Malawi’s connectivity, boost regional trade and ease the movement of goods and people along the North-South Corridor.

Passen said ” EU is contributing K 34 billion from our African Investment Platform (AIP), which will be managed by the European Investment Bank (EIB) through a so called blending operation whereby EU grant funds are blended with loans from financial institutions. The project is also complemented by the rehabilitation work under the World Bank loan.”

She, however, said there is need for Malawi to embrace “a robust financial and operational policy to build long-term sustainability with efficiently managed revenues and timely preventative maintenance in the quest to achieve transport linkages.”

“Private sector investment in the sector is important and we need to broaden economic participation in transport services and improve competition,” she said.

The M1 road is an important transport link for the agriculture sector and its rehabilitation will support the market for agricultural produce.

The M1 Road Rehabilitation Project is one of three projects under the European Union’s flagship initiative for Africa, the External Investment Plan (EIP), as other projects are the Mozambique-Malawi 400 kV Interconnector being implemented by German Development Bank (KfW) and the planned rehabilitation of the Nsipe-Liwonde Road, which is part of the East-West Corridor, to be implemented by the African Development Bank (AfDB).

Currently, Malawi will have the first ever interchange- that will replace the area 18 roundabout in Lilongwe as government is constructing a dual carriage way stretching from Parliament roundabout to Bingu National Stadium round about.

Statistics indicates that Malawi has a road network of about 15,451 km, according to the Malawi Roads Authority 2016 coverage, of which only 30 percent are paved and the rest are unpaved and mostly in earth standard.

The Competition and Fair Trading Commission(CFTC) says it is investigating cross-border bus operators; InterCape, Taqwa and Jobella Star bus company over allegations that they mistreat their customers.

CFTC says the investigations have been instituted following complaints the Commission has received from passengers and baggage transportation customers for the said cross-border bus operators.

The Fair Trading regulator says, among other concerns raised by the customers, the companies have been denying liability of customers’ goods lost or damaged on transit.

The customers have also reported the companies to the Commission against improper handling of passengers particularly not attending to their physical or health situations during the trips, which is contrary to section 43 of the Competition and Fair Trading Act.

Acting Executive Director for CFTC  Martha Kaukonde  says in an interview that the Commission is handling the cases in accordance with the Competition and Fair Trading Act (CFTA) and the Consumer Protection Act (CPA) which, among other things, prohibit suppliers of goods and services from engaging in unconscionable conduct.

She says: “We have received complaints from customers that their goods are pushed or piled without proper care, which results in the luggage being lost while fragile items get smashed, and the operators have demonstrated unwillingness to provide satisfactory assistance to the affected travelers when they have presented their complaints to their respective offices.”

“The conduct by the said bus companies appear to amount to a violation of Section 43 (1) (g) of the CFTA Act which states that “a person shall not, in relation to a consumer, engage in unconscionable conduct in the trade of goods and services.”

Kaukonde says “so far the commission has followed up on affected customers and former employees in a quest to unearth relevant evidence to present before the board of the Commission that will determine penalties for the companies if found guilty.

Meanwhile, CFTC is urging victims of such malpractices to present their concerns to the Commission in a bid to improve the customer service delivery of the buses.

The Malawi Government has secured funds from the African Development Bank (AfDB) to kick-start the 53km Mangochi-Chiponde (M3) road rehabilitation project.

The Roads Authority (RA) is, meanwhile, inviting consulting firms to undertake engineering studies including a feasibility study and detailed engineering designfor the project.

Procurement Specialist for RAMoses Malinda says in a press release that the consultancy assignment is expected to be executed in 46 weeks.

“Interested consultants must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff etc.),” Malinda explains.

He says consultants can also form joint-ventures to enhance their chances.

Malinda says RA will apply shortlisting and selection procedures stipulated in the AfDB’s ‘Rules and Procedures for the Use of Consultants’ of 2016.

He says: “Interested consultants may obtain further information at our website or physically contact us during office hours from 08:00to 16:00hrs local time from October 8th to 23rd, 2019 with clear indication of the bid title.”

The Mangochi-Chiponde road project is under the Multinational Nacala Road Corridor Development Project Phase V.

RA is a quasi-government body which was established by an Act of Parliament in year 2006 with a mandate to ensure that public roads are constructed, maintained and rehabilitated at all times.

The Roads Authority (RA) says it has acquired K1-bilion from the World Bank to carry out maintenance works on roads which were damaged by floods in 15 districts of the country.

Public Relations Officer (PRO) for Roads Authority Portia Kajanga told Mining and Trade Review that the African Development Bank (AfDB) has also shown interest to bankroll the exercise and is still negotiating with the government on amounts to be disbursed and other logistics.

“The damage caused by floods on the country’s road network was quiet big especially in the southern region of the country such that some roads had to be closed and some areas were cut off for a number of days,” she said.

Districts which were heavily affected by floods include Chiradzulu, Thyolo, Mulanje, Phalombe, Blantyre, Zomba, Nsanje, Chikwawa, Mwanza, Neno, Machinga, Balaka, Mangochi, Ntcheu and Dedza.

Kajanga said government already spent around US$866,000 to repair most of the affected roads by providing diversions for World Food Programme to access cut-off areas with relief items.

She said as an emergency response, RA has deployed emergency contractors to provide temporary routes in all areas where roads were washed away.

“Currently we are in the procurement process of acquiring other contractors to grade the roads once we access funding from AfDB,” she said.

She pointed out that among the affected roads, the most important is the M1 Road in Chikwawa which remained cut for about one and a half days which negatively impacted on travel plans for lots of people and organizations.

Kanjanga said the wash-aways on the Makanjira road also affected many people as the road          remained cut for three days before completion of construction of an alternative route.

Besides repairing the roads damaged by floods, the Roads Authority has lined up a number of road projects including construction of the 25.9km Nsanje-Marka Road which is part of a regional route connecting Malawi with the Port of Beira in Mozambique and beyond.

RA also plans to reconstruct and widen the Kaphatenga – Dwangwa Road in Nkhotakota  District and the work will involve replacing single lane and temporary bridges with permanent two lane bridges for the section spanning from Nkhotakota – Bua Bridge.

The other project on the cards is the rehabilitation of the 45km Mzimba – Mzarangwe which is of the key roads in the Northern Region of Malawi.

RA will also reconstruct and upgrade the Chiringa-Muloza road in Mulanje and Rumphi-Nyika-Chitipa road in the northern region which is currently of earth standard and will be upgraded to bitumen Class 1.

Malawi’s public road network coverage by end June 2016 remained 15.451km out of which about 28% are paved and 72% is earth/gravel surface.

Road re-classification studies done in 2016 identified about 9,478km of undesignated road network that serve the rural communities.

Road handles more than 70% on internal freight and 99% of passenger traffic, and more than 90% of international freight and passenger traffic.

Studies indicate that in Malawi, 55% of the costs of production are taken up by transportation costs as compared to 17% of other developing countries.

The condition of paved road network as indicated in a study conducted in June 2014 is 38% good, 40% fair and 22% poor.

BY FRANCIS TAYANJAH-PHIRI

Construction of Likoma Port is scheduled to finish by November 30 this year, when it will immediately start operating, the Marine Department says.

In an interview with Mining & Trade Review, the Department’s Chief Surveyor of Vessels Wilson Luwani rated the project at 85% completion.

He said the facility will be capable of handling two big ships at a time.

Luwani explained that currently there are ongoing construction works taking place for a fence, warehouse, and immigration/customs offices; and immediately after this, the port will be ready for operations.

“Apart from the docking bay, the facility [port] will have a warehouse, storage facilities, waiting shelter, jetty, and cargo handling equipment, among other things,” said Luwani.

He said the port was designed in a manner that it would not be prone to floods, as is the case with the Nkhata Bay one, which is currently submerged in water, following this year’s rising of water levels in most parts of Lake Malawi.

“This port was designed to handle the highest water levels ever recorded,” remarked Luwani.

However, he said the construction of the Port was not without challenges, citing, among others, shortage of fuel supply at the early stages of construction works.

“Other challenges were; water levels making it difficult to do works under the main platform and weather patterns including heavy winds on the lake which made it difficult to supply building materials,” said Luwani.

He said the other challenges included difficulty to find locally qualified personnel to do special professional works for instance underwater works, and the devaluation of the Malawi Kwacha along with inflation, which kept the contract sum rising.

Luwani disclosed that the total cost of this project was initially projected at MK10 billion, but rose to MK22 billion, due to the stated factors.

“The Government of Malawi funded the project, and the contractor is Mota-Engil,” he said.

Luwani stated that the port, once operational, will impact positively on the development of the Island district by ensuring improved efficiency in cargo handling.

“This will translate into increased trade operations; as it will enhance time saving and low operational costs with the jetty in place,” he said

By Wahard Betha

The Malawi Government through the Ministry of Transport and Public Works says it has begun restructuring the country’s air transport industry, which includes the establishment of an airport operator which has been set to be operated and managed by Airport Development Limited (ADL) under the Ministry.

The 2024 Annual Economic Report published by the Ministry of Finance and Economic Affairs explains that the mandate of ADL was extended to assume responsibility of all public aerodromes with expectations to complete the process by October 30,2024.

It reads: “The Department of Civil Aviation will further be restructured to be responsible for aviation policy in the Ministry.”

“The process of restructuring will result in the movement of human resources to where their skills and capabilities best fit and will be utilized most effectively and efficiently.”

It also says Malawi has initiated Bilateral Air Service Agreements (BASA) with Kuwait, Uganda and Mozambique, which should result in the introduction of additional flights between Malawi and the aforementioned countries.

Meanwhile, the Ministry is undertaking various projects in the air transport industry including: Development of the New Mzuzu Airport; Essential Aviation Safety Equipment Upgrade; Rehabilitation of Mzuzu Airport Resources and; Upgrade of Aviation Safety Resources.

The report, however, says the air transport industry is still encountering challenges including forex shortages and the unintended effects of devaluation.

It reads: “The scarcity of forex has compromised the attractiveness of the Malawi market to airlines as they face challenges to remit their proceeds from Malawi.”

“Government will continue to have dialogue with the airlines and other key stakeholders to ensure that airlines are able to remit their proceeds.

Apart from the air transport industry, the report also highlights some of the major activities in the railways sub-sector which include the ongoing design, upgrade and rehabilitation of the Marka – Bangula railway line, which were significantly affected by Tropical Cyclone Freddy considering that most of these are currently being implemented in the southern region which was heavily affected.

Other ongoing projects in the rail subsector includes; rehabilitation of the Nkaya-Salima-Lilongwe-Mchinji Railway Section (399km); Construction of the Ruo Breakaway Rail/Road Bridge Construction works for the Ruo Breakaway Rail/Road Bridge on the Makhanga to Sandama railway section; Construction of a Rail Network to the North of Malawi and; Railway Operations Training Programme.

The ministry responsible plans to complete works for the construction of the Marka-Bangula railway in the 2024/25 financial year.

By Thokozani Kachingwe

The Malawi Government says it is advancing with preparations to extend the country’s railway network to the Northern Region.

Public Relations Officer for the Ministry of Transport and Public Works Watson Maingo told Mining & Trade Review that currently the Ministry is preparing to conduct feasibility studies and later proceed with actual implementation of the project.

Maingo said that the purpose of the project is to reduce transport costs which will culminate into reduced prices for goods on the market including Malawi’s export commodities in so doing making them competitive globally.  

He said the project will also help to minimise pressure on the country’s roads which cater for transportation of a large percentage of goods in the country.

Maingo explained that the feasibility studies will, among other things, come up with the cost estimates for the project.

In a separate interview, Chairman of the Transport and Public Works Committee in Parliament Enock Phale said extending the railway to the Northern Region corridor will significantly help to reduce prices of commodities in the country as the rail, a relatively cheaper means of transport compared to roads, will also be used for the transportation of fuel.

Phale said: “Due to our overreliance on road transport, some types of the trucks that are driving on our roads are very heavy, thereby putting a lot of distress to our road network.”

“We need to diversify our modes of transport so that we have very heavy cargo hauled through rail.

He said Malawi needs not to lag behind in developing its rail network in order to establish a seamless rail transport network with other countries in the region which are also revamping their railway networks.

Phale also said developing the railway network is key to State President Lazarus Chikwera’s strategy of developing Agriculture, Tourism and Mining sectors to propel economic growth, which is dubbed the ATM strategy.

Though cut-off from the rail network, the northern region hosts a number of areas with potential for agriculture, mining and tourism activities.

The Ministry of Finance and Economic Affairs stated in the 2024 economic report that in this financial year, it will continue to work on the procurement of consultancy services for the study on establishing a railway line to the north.

The report reads: “The procurement for a Transaction Advisor to prepare a feasibility study for the extension of the railway line to Northern Malawi, was concluded and a service provider was identified by the Public Private Partnership Commission (PPPC).”