LILONGWE-(MaraviPost)-Malawi’s Parliament has greenlit a €38 million loan from the European Investment Bank (EIB) to fund the second phase of the M1 Road Rehabilitation Project.
The loan will support the rehabilitation of approximately 347 kilometers of the single-carriage M1 Road, spanning five sections: Karonga-Songwe, Kacheche-Chiweta, Jenda-Mzimba, Kasungu-Jenda, and Kamuzu International Airport-Kasungu.
Finance Minister Joseph Mwanamvekha announced that the project is over 40% complete, with four contractors on board.
The loan comes with a 20-year repayment period and a fixed interest rate of about 4% per annum, combining credit and grant components.
Malawi Congress Party spokesperson on finance, Peter Dimba, welcomed the approval, praising the government’s commitment to implementing development projects initiated by the previous MCP administration.
The M1 Road is a critical transportation artery, and this rehabilitation project aims to improve road safety and facilitate trade growth, food security, and access to essential social services.
The EIB loan is part of a larger financing package, including a €43.1 million grant from the European Union.
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