Khato Civils Urges Timely Funding for K260 Billion Water Supply Project
In an important development concerning Malawi’s infrastructure, Khato Civils is appealing to financiers involved in the massive K260 billion Salima-Lilongwe Water Supply Project to ensure timely fund disbursements. The construction company made these remarks during an inspection conducted in Salima, organized by the Ministry of Water and Sanitation in collaboration with the Reserve Bank of Malawi and NBS Bank plc. This project is poised to significantly enhance the water supply in Lilongwe, Malawi’s capital, addressing the needs of its growing population.
Pride Phiri, the director of finance at Khato Civils, provided insights on the project’s current status, stating that they are progressing according to the agreed-upon schedules with the Malawi Government. He emphasized the vital role of consistent cash flow in the success of mega projects like this one, which aims to deliver adequate water supply solutions within a tight 24-month timeframe.
To date, Khato Civils has already invested approximately million (around K142 billion) into the project. This substantial investment covers a broad scope of essential activities, including marine and seismic engineering, structural designs, and geotechnical surveys. The funds have also facilitated the purchase of crucial materials such as steel, cement, and pipes, which are integral to the construction process.
Furthermore, Tinofirei Mawanza, a senior project and design engineer at Khato Civils, announced that construction activities are already ahead of schedule. Plans have been put in place to ensure that adverse weather conditions, such as seasonal rains, will not hinder progress on the project.
Elias Chimulambe, the Principal Secretary at the Ministry of Water and Sanitation, also expressed optimism regarding the project’s timeline. He remarked, “We are impressed with what we have seen; they have started very well.” With 100% mobilization and the commencement of civil works, hopes are high that the project will be completed by 2026.
The financing structure for the project is notable, with the government contributing 30% of the funds, while the remaining 70% will be sourced from various investors and commercial financing, notably through NBS Bank plc as the lead arranger.
This ambitious project is a significant step toward meeting the increasing demand for water in Malawi’s capital and improving overall living conditions for its residents. As the country continues its journey towards sustainable development, successfully completing the Salima-Lilongwe Water Supply Project will be a landmark achievement.
