Minister of Finance Ken Lipenga has said out of about K25 billion ($76.5 million) that government will borrow from the Export-Import Bank of India, at least K8.48 billion will go towards construction ofÂ fuel reserves.
Commenting on the breakdown of the loan on Tuesday when he wound upÂ debate on the bill to authorise the borrowing, Lipenga said the sugarcane processing plant in Salima will be allocatedÂ at least K10.8 billion ($33.64 million) while the irrigation project component will have almost K5.24 billion ($16.36 million).
He told the House that the sugar processing facility will be under the Public-Private Partnership (PPP) arrangement where the private sector would also be invited to invest in the project.
â€œThe private investor will also partly supply the sugarcane,â€ said Lipenga.
On the fuel reserves, the minister said government, through the Malawi Energy Regulatory Authority (Mera), is rehabilitating existing fuel reserve facilities in Chilumba, Chipoka and Mchinji and that the facilities will later be taken over by the National Oil Company of Malawi (Nocma).
He said government decided to expand the storage capacity to enable it to buy the fuel in bulk at a fair price while maintaining supplies during lean periods.
The House later approved the borrowing.