Ministry of Energy Principal Secretary(PS) Alfonso Chikuni has said the planned roll out of Malawi Rural Electrification Programme Phase 9 this year could be delayed further due to lack of funds.
Speaking in an interview on Sunday, he said the roll-out has also been affected by forex shortages resulting in delayed procurement of some materials by contracted suppliers.
Chikuni further said Malawi Energy Regulatory Authority (Mera) has also not been remitting funds from fuel levy to Marep.
He said: ”Marep was suppossed to roll out in April this year. But we are facing a shortfall of about K15 billion.
”If Mera continues to fail remitting Marep funds, then the roll-out of Marep 9 and 10 will be affected.”
Mera chief executive officer Henry Kachaje blamed the delay to remit funds on the depletion of the fuel Price Stabilization Fund.
”It has been a struggle for us to pay importers for losses incurred during importation and sale of fuel, as a result, they also fail to effectively remit levies on fuel on time,” he said.
Kachaje said Mera is engaging Treasury on how best the issue can be resolved.
Preparations for Marep Phase 9 implementation began in 2021 but construction is yet to commence.
The project, to cost K40 billion, seeks to increase access to electricity for people in peri-urban and rural areas as part of governments efforts to reduce poverty, transform rural economies are improve productivity and quality of social services.
Source: The Nation_October 24, 2023_George Singini-Staff Reporter