Tuesday, May 21, 2024

Malawi short in the arm as Pres. Chakwera signs a US$6.8billion Bridgin grant

Malawi short in the arm as Pres. Chakwera signs a US$6.8billion Bridgin grant

The Republic of Malawi has today, 28 November 2022, signed a BoT grant of US$6.8billion (about MK7.5Trillion) with Bridgin Foundation.

The President of Malawi, Dr. Lazarus McCathy Chakwera, witnessed the signing ceremony which took place at Kamuzu Palace in Lilongwe.

The investments in Malawi, mainly on a Build-Operate-Transfer (BoT) basis, over a period of 60 years.

The first project is the construction of Twin Towers within Capitol Hill for all government agencies and ministries renting property elsewhere to move into. After Bridgin recoups its investment via rental remittances to them, the Twin Towers will belong to Malawi Government.

The deal also includes funding the construction of Mombera University and other technical colleges. Bridgin will manage and collect the fees over a period of 20 years, before we take ownership of the institutions.

Thereafter, the investment package will turn its focus to construction of five hydro-electric power projects with a combined total of 1000 megawatts, each to take about 10 years to roll out.

According to the Agreement signed today, these electricity power projects will be handed over to Malawi 40 years from the time the last hydro plant is operationalized. By which time, it is projected that Bridgin would have returned its investment.

The summary of all projects earmarked for the grant package include the following;

  1. Construction of M’mbelwa University in Mzimba district with a budget of US$480 million.
  2. Construction and equipping of a Hi-Tech bioscience and fertilizer manufacturing industrial plant at LUANAR in Lilongwe.
  3. Construction, equipping, and full operationalization of a Hi-Tech Kamuzu University Teaching Hospital in Blantyre with satellite centres in Mzuzu, Lilongwe and Mangochi.
  4. A budget of US$3.3 billion towards the development of power generation facilities with total installed capacity of 1000 megawatts and related infrastructure upgrade and transmission.
  5. A budget of US$230 million towards the construction of Twin Towers at the Capitol Hill in Lilongwe.
  6. Construction and equipping of Mzuzu University Teaching, learning and Research facilities for geo-mining and establishment of business park in Mzuzu.
  7. Construction and equipping of MUST hi-tech technology and engineering hub in Thyolo.

Government says these projects will help Malawi achieve her Vision 2063 agenda, which is aimed at lifting the infrastructure and service delivery face of the country among other facets of development manifestations.


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