The controversial Lilongwe-Salima project has landed Malawi Government in trouble with the World Bank.
The World Bank has said it will not provide K60 billion budgetary support to Malawi following government’s decision to go ahead with the controversial US$500 million project.
Secretary to the Treasury Ben Botolo told the Budget and Finance Committee of Parliament in Lilongwe on Tuesday that some of Malawi’s donors convinced the World Bank not to give Malawi the budgetary support.
“The issues currently being raised by donors were not part of the set conditionalities for the budget support,” Botolo told the committee.
According to Botolo, government will now be forced to cut down on expenditure by not implementing some projects.
“The impact on some of the programmes may be felt definitely. Others which we call flagship projects will continue,” he said.
In reaction, Malawi Congress Party Member of Parliament Alexander Kusamba Dzonzi who is also a member of the committee told Botolo to reveal the name of the donor who pressurised the World Bank to renege on its pledge so that Parliament should screen the donor.
Government awarded the Salima-Lilongwe Water Project to Khato Civils but there are concerns from various quarters over lack of Environmental Impact Assessment.