The European Union and Malawi have signed an agreement for the rehabilitation of the M1 Road.
The agreement was signed by Malawi’s Minister of Finance Joseph Mwanamvekha, together with the Minister of Transport Ralph Juma and the Head of Delegation to Malawi, Sandra Paesen.
The road project is aimed at improving road connection in Malawi, as well as reducing accidents that are happening along the M1 road.
Speaking at a press briefing in Lilongwe at Capital Hill on Wednesday, Paesen, said that the EU is going to contribute MWK34 billion (43 million EUR) from African Investment Platform (AIP), which will be managed by the European Investment Bank (EIB) through a so-called blending operation, whereby EU grant funds are blended with loans from financial institutions.
“This project, the Malawi M1 Road Rehabilitation, comprises the rehabilitation of 301 km of priority road sections, which have been identified as having the highest impact in facilitating trade, eliminating bottlenecks and reducing road fatalities,” she said.
Paesen added that the project will serve to enhance Malawi’s connectivity, boost regional trade and ease the movement of goods and people along this North-South Corridor.
She noted that the M1 road is an important transport link for the agriculture sector and its rehabilitation will support the market for agricultural produce.
Speaking at the event, Jooma said his ministry will monitor the implementation of the project so that there should be no issues of poor quality of the works.
The minister thanked the European Investment Bank and the European Union for financing the project and he assured that every penny used will be account for.
In his remarks, Minister of Finance Mwanamvekha, said apart from the development and the increase of network, the road will create job opportunities for the people who will work on the road and the project will also create demand for various goods and services such as construction materials as a lot of infrastructure.
