The Malawi government has settled for a financing agreement of a loan of about MK12 billion with the European Investment Bank (EIB) for the Lilongwe Water Supply Resources Efficiency Programme.

Minister of Finance, Economic Planning and
Development, Dr Goodall Gondwe, the new
water investment in the capital city is both
crucial and strategic considering Lilongwe’s
population is projected to double in the
next 20 years.

Gondwe says the loan will help the nation.
“Lilongwe represents Malawi in that a
delegation coming, say, from the United
States of America, finding no water in
Lilongwe would rather say there in no
water in Malawi than in Lilongwe,” said

The finance minister further disclosed that
the loan, which is payable in 25 years with
a grace period of five years, would help
increase Lilongwe’s water supply storage at
capacity at Kamuzu Dam as well as improve
its water treatment facilities.
“These investments will help Lilongwe
Water Board (LWB) to increase its volume of
treated water for its customers while at the
same time reducing the nonrevenue water
by improving the distribution network of
the Water Board.

LWB Board Chairman, Rev Dr. Billy Gama,
who disclosed on the sidelines that Kamuzu
dam would, with the funding store up to 18
million cubic meters, enough to contain the
current demand of water in the city until

He, however, disclosed that between now
and 2020, the board would be working on
Diamphwe dam which would complement
Kamuzu dam.
In his remarks, EIB Vice President, Pim van
Ballekom, recounted that his bank has
worked with Malawi on various
development projects and was willing to
make more investments, but challenged
that that would depend on how the loan
would be put to use.
He said the bank also planned to invest in
the country’s private sector saying Malawi
needed more than just public sector
investment if it was to attain the aspired
Gondwe has since challenged LWB to put
the loan resources to the intended use
promising accordingly punishment to
anyone who misappropriate any resources.
EIB has 40 years working relationship with
Malawi having worked with Government
since the 1970s.


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