Opec Fund for International Development (Ofid) says it is dismayed with Malawi Government’s failure to utilise $350 000 (about K350 million) grant for the technical and economic feasibility study of new Mzuzu International Airport.

Speaking when he met Malawi Minister of Finance Simplex Chithyola Banda on the sidelines of this year’s World Bank Group/International Monetary Fund (IMF) Meetings in Marrakech, Morocco on Friday, Ofid assistant director general for Public Sector Operations Department, Fuad Albassam, said government is failing to recruit a consultant for the project two years after signing the grant.

Chithyola Banda with Albassam during the meeting on Friday

He said: “The project preparation grant is intended to finance the preparation of the feasibility study for the construction of a new airport for Mzuzu City.”

Albassam said the overall cost of the feasibility study is $800 000 with Ofid and the Arab Bank for Economic Development (Badea) each contributing $350 000 towards the study and the Government of Malawi contributing $100 000.

“It was expected to result in a potential $200 million [based on preliminary estimates] investment that Badea and the Ofid could subsequently finance with the government and other partners but two years down the line there has been no movement,” he said.

Albassam said this shows that the Malawi Government was not serious with the project and could potentially lose the grant if it does not identify and recruit a consultant.

In his response, Chithyola Banda said he will provide necessary policy direction to ensure that the process starts as soon as possible to make sure Malawi gets and utilises resources prudently.

“Mzuzu City deserves a modern international airport to facilitate aviation services in the North but how could we as a country not utilise the programme grant which was approved and signed in 2021.

“We need to move with speed and be patriotic to help turn around the economy and spearhead development,” he said.

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