Government has said it will review the $500 million (about K400 billion) Salima– Lilongwe water pipeline project in light of reports that a feasibility study for the much-touted project is yet to be done despite the contractor, Khato Holdings Limited, said to have already spent millions of kwacha before commencement of the project.
Finance Minister, Goodall Gondwe, said in an interview yesterday that the authorities will have to find a way on how to deal with the issue of feasibility study since contract for the multi billion kwacha projects was already entered into.
Meanwhile, Chairperson of Khato Holdings Limited, Simbi Phiri has reportedly claimed that $56 million has already been spent on the project in procuring equipment among others.
Gondwe, nonetheless, backed the initial arrangement of awarding the contract before the study arguing that in some instances such things do happen.
“Certainly, we will have to do a review. What I mean is that we will have to deal with the question of feasibility study but I can assure you that elsewhere such cases do happen,” Gondwe said.
He said that government is yet to decide on which financier to fund the project adding that there are a number of investors that government will have to pick from, and that once the process is finalised people will be informed.
But sources close to the deal say that the Development Bank of Southern Africa is being courted to fund the project.
Spokesperson for Khato Ltd, Taonga Botolo, refused to comment, saying government officials and Lilongwe Water Board (LWB), are better placed to comment.
LWB Chief Executive Officer, Alfonso Chikuni, was also not immediately available for comment as his phone went unanswered despite several attempts.
But in an earlier interview with The Daily Times, Chikuni spoke in defence of the arrangement arguing that the agreement between the contractor and his office was that the feasibility study would be done after the contract was signed.
“I want to emphasise that no Environmental Impact Assessment (EIA) was done because that would mean a lot of time could be spent on the study. Yet we all know that we need the water very badly.
He, however, did not elaborate on when ‘an imminent water crisis’ will hit the capital city if nothing is done in haste to reverse the situation.
It is expected that 50 million litres of water will be supplied per day in Lilongwe once the project which will cover 125 kilometers is finalised.
Meanwhile, Attorney General Kalekeni Kaphale has also told the media that he wants a review of some details of the contract and has already offered his legal opinion.
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