K165m development funds down the drain

Malawi Government has resolved to demolish substandard projects built using Local Development Fund (LDF) money at a cost of K164.7 million ($329 400).

The projects earmarked for demolition are Usisya Market in Nkhata Bay and Ntcheu Bus Depot.

LDF director of urban development Mike Moyo confirmed that government is engaging another contractor to reconstruct the structures.

But the process of reconstruction means that government will have to spend K185.98 million ($371 960) more than the budgeted money in hiring a new contractor.

Usisya and Ntcheu facilities are part of LDF projects benefitting from the 11 million euros (about K5.5 billion) offered by the Germany government through KfW Bank. Eight projects nationwide are in the frame to benefit from K1.3 billion injection made available to date.

Moyo said the projects at Usisya and Ntcheu were scheduled to complete this month with a budget of K350.7 million ($701 400).

However, he said the projects have missed the deadline as Usisya Market is 50 percent complete whereas Ntcheu Bus Depot is at 46 percent.

The other six projects handled by other contractors are complete or are due for completion, he said. These are Phalula, Mthandizi and Ulongwe markets in Balaka, a multipurpose hall in Mangochi and other projects in Blantyre and Lilongwe.

Following the termination of the contract, the contractor is expected to surrender a performance bond of K35 million ($70 000), which is 10 percent of the total cost of the two projects, according to Moyo.

But people at a hard-to-reach area of Usisya are worried with the state of affairs.

Usisya is cut out from urban areas of Mzuzu and Nkhata Bay with the mountains and the lake, which makes it perilous to be reached, especially during rainy seasons.

“To us, a market is all we need because it would make it easy to access basic commodities,” said acting Senior Chief M’bwana.