The Ministry of Finance says about K9 billion (about $22.5m) is available for the construction of Phalombe District Hospital.
The project has delayed since 2005 following Parliament’s approval
Lipenga said this in Lilongwe on Monday during the signing ceremony of a K4 billion loan agreement between the Malawi Government and the Saudi Fund for Development.
Said Lipenga: “The Saudi Fund is providing to Malawi financial resources amounting to 45 million Saudi rial, which is equivalent to $12 million and K4 billion for the construction of the hospital. It will be co-financed by the Arab Bank for Economic Development and the Malawi Government.”
He said the Arab Bank will provide $7 million while the Malawi Government will provide close to $7million which, together with the $12 million from Saudi Fund, will add up to $26 million ,equivalent to K9 billion for the whole project.
Lipenga said the project could not start because there was need to secure the remaining funding from the Saudi Fund for Development.
Director general for the Saudi Fund, Hassan Alattas, said his country is glad to be part of the project that will contribute to the social and economic development of Malawi.
He assured Malawi that Saudi Arabia will continue to assist the country through Saudi Fund and other regional and international institutions.
“The assistance by the Kingdom of Saudi Arabia to the developing countries and Malawi in specific is not limited through the Saudi Fund for Development and also through many regional and international institutions, which Saudi Arabia is a major shareholder,” said Alattas.
In her remarks, Minister of Health Catherine Gotani Hara said the hospital will improve equity and access to health facilities and complement the national efforts to reduce maternal and infant mortality rates and other health ills.