Malawi Government has said it will compensate communities who will be affected by the rehabilitation of the Mzuzu-Nkhata Bay Road to start soon.
Finance Minister Ken Lipenga confirmed on Friday that government has already allocated about K650 million (about $1.6m) for the exercise.
He was speaking in Lilongwe when he represented government in the signing ceremony of various loans and grants totalling K29.2 billion (about $73m) with the African Development Bank (AfDB).
Lipenga added that some technical teams from government are currently working on the modalities before disbursing the compensation to the affected communities.
Among other components, the rehabilitation project will include construction of roadside market structures at selected locations.
Government also plans to hold road safety and HIV and Aids awareness campaigns in the project area.
“The project will also contribute to trade and integration of the Sadc and Comesa regions, as it forms part of the Mtwara Development Corridor, which extends from Tanzania’s port of Mtwara through mainland Tanzania, northern Mozambique and some parts,” he said
AfDB office in Malawi says it hopes to embark on preparatory studies for the financing of the Mtwara Corridor as a multinational project with other development partners.