Shortages of fuel and some imported basic commodities in economically troubled Malawi have affected the implementation schedules of major road construction projects, leading to ballooning costs for the projects, which are largely financed by international donors.

The Malawi Roads Authority (MRA) says the affected projects include the 101 km Karonga– Chitipa road in the northern region. The authority says it has shifted the completion date for the project, which is being financed by the Chinese government, from September 28, 2011, to the end of this year.

“The delay has been caused by diesel shortages and a change in the pavement design from natural gravel to crushed stone,” says the MRA.

Chinese company China Road & Bridge Corporation is the contractor for the $70-million project.

The MRA says the $57-million 102 km Zomba–Jali–Phalombe–Chitakale road project, in the southern region, has also been affected by shortages of fuel, cement, steel and bitumen. The project stalled when it reached the 75% completion mark. The outstanding work on this project will cost $33.83-million, and the financiers, the Arab Fund for International Development (Badea) and the Kuwaiti Fund, have already pledged to provide part of the funding – $4-million and $10-million respectively.

The contractor for the project is Kuwaiti’s MA Kharafi & Sons, while Saodi Al Muhana is the supervising consultant.

Yet another project which has stalled is the Thyolo–Thekerani–Muona–Bangula road project, which started in February 2011. Besides fuel shortages, the project’s progress was impeded by delays in concluding funding arrangements. However, the MRA assures that “things are now in order”, with the Malawi government having ratified loan agreements with financiers Badea, the Organisation of the Petroleum Exporting Countries (Opec) Fund for International Development, the Kuwaiti Fund and the Saudi Fund.

It says the revised project cost of $82-million means that the road will be constructed from Thyolo to Makhanga and not to Bangula as originally planned.

The MRA says it is also preparing to resume work on the rehabilitation and reconstruction of the 25 km Liwonde–Naminga road at an estimated cost of $23-million.

The contractor, MA Kharafi & Sons, also suspended works because of delays in accessing funding for the project, which is being financed by the Malawi government and the Opec Fund for International Development.

Construction of the 25 km road, which started on February 28, 2008, was initially expected to be completed by February 2009.

The contractor stopped working on the project after it had mobilised resources to the site. The MRA says work on the project is expected to resume this year as the authority has agreed with government to promptly pay the required instalment to the contractor.

“We are in the process of procuring another consultant in readiness for the restart of the project as soon as government settles the outstanding payments.”

Fuel shortages have also forced Portuguese contractor Mota-Engil to ask for more time to complete the 160 km rehabilitation of the Lilongwe–Nsipe road, whose supervising consultant is Germany’s Gauff Ingenieure.

The MRA says the project, which the Malawi government is financing in partnership with the European Union (EU), started on November 11, 2008, and was originally due for completion in October 2011.

“The contractor applied for an extension owing to diesel shortages.”

The EU is also financing the €27-million rehabilitation of the Chikhwawa–Nchalo–Bangula road, which was also affected by the fuel scarcity. Mota-Engil is the contractor for this project as well, whose supervising consultant is Denmark’s Grontmij/Carlo Bro.

The fuels shortages are largely a result of shortages of foreign exchange, while cement supply has been erratic because the major cement producer, Lafarge Malawi, depends on imported limestone.

The country’s foreign currency reserves reportedly stand at about one month of import cover, compared with a minimum of three months that is recom- mended by the International Monetary Fund (IMF).

The foreign currency shortages are as a result of low proceeds from sales of tobacco, the main cash crop, and the suspension of Budgetary support from international donors, whose financial injections used to cater for 40% of Malawi’s Budget.

The donors suspended their support to Malawi’s past administration because of concerns over bad governance and a lack of respect for the rule of law.

However, the donors, led by the IMF, have now decided to resume their aid to the country following the takeover by the new President, Joyce Banda.