Treasury challenges city councils on project financing
Ministry of Finance, Economic Planning and Development has told city councils that it will release funding for construction of roads if they utilise the first allocation efficiently and quickly.
In the 2015/2016 national budget, government approved funds for city councils to improve roads in cities with Blantyre and Lilongwe getting K1.8 billion each, Mzuzu receiving K1.4 billion and Zomba K1 billion.
Five months before the financial year ends on June 30, government has only released K1.1 billion for Blantyre, K1.1 billion for Lilongwe and K1 billion for Mzuzu. The amount released means councils are scaling down the work they planned.
Government is struggling to fund various activities and budgets for some activities, including hospital operations, have been cut to enable it meet other needs.
However, Ministry of Finance, Economic Planning and Development spokesperson Nations Msowoya said on Thursday Treasury will release the remaining funds if the councils demonstrate that they can use the money efficiently and quickly.
“The fact that government has made a commitment to improve city roads should be evidence enough that those projects will be completed. Once the councils exhaust the current funding, Treasury will release the remaining funds,” said Msowoya.
Mzuzu City Council (MCC) mayor William Mkandawire said designing of the roads is at an advanced stage and soon the council will start engaging contractors to work on them.
He said the council planned to work on 10.1 kilometres with the K1.4 billion, but with the K1 billion released the council will work on 6.2 kilometres.
