Ministry of Forestry and Natural Resources has called for a K21 billion bailout for Blantyre Water Board (BWB) to help clear a debt it owes Electricity Supply Corporation of Malawi (Escom).
The ministry’s Principal Secretary (PS) Yanira Ntupanyama made the call on Thursday when she appeared before the Parliamentary Committee on Natural Resources and Climate Change to update it on how the recent water tariff hike is helping the water board.
She said BWB is facing a number of financial challenges and has failed to settle electricity bills that have now accumulated to K21 billion.
Ntupanyama said the cost of pumping water from Nkula to Blantyre is high as such BWB spends more money on electricity.
The PS said the board generates about K1.3 billion a month, but spends about K1.2 billion on electricity leaving it with K100 million for its operations.
Ntupanyama said: “Actually BWB presented a turnaround strategy because in so many ways they are not doing well because of the electricity bills. Due to the terrain of Blantyre, they pump water using a lot of electricity.
“The electricity bills are unbelievable because they have to pay over a billion every month. They cannot sustain themselves on this.”
She, therefore, asked government to bailout the board as its current situation is not sustainable.
The committee’s chairperson Welani Chilenga said a bailout will help improve operations of the board and ensure that people of Blantyre have reliable water supply.
“Escom is on the neck of BWB. Escom told us that they are not able to connect customers because the board owes them K21 billion.
“So, indeed if BWB is not bailed out, the consquences will be that they not be able to operate. They will just be paying Escom,” he said.
