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Overview

Chinese Government provides RMB 150 million grant for M1 Dual Carriageway from Lilongwe City Centre to Kamuzu International Airport Project (Linked to Record ID#72400 and #69731)

Commitments (Constant USD, 2023)$22,822,468
Commitment Year2018Country of ActivityMalawiDirect Recipient Country of IncorporationMalawiSectorTransport And StorageFlow TypeGrant

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 15, 2018
Start (planned)
Jan 1, 2017
Start (actual)
Dec 28, 2021
End (planned)
Nov 1, 2018

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • China Ministry of Commerce

Cofinancing agencies

State-owned Banks

  • Japan Bank for International Corporation (JBIC)

Receiving agencies

Government Agencies

  • Government of Malawi

Implementing agencies

State-owned companies

  • CCCC First Highway Engineering Bureau
  • Shandong Luqiao Group Company Limited
  • X'ian Fangzhou Engineering Consulting Co. Ltd.

Loan desecription

Chinese Government provides RMB 150 million grant for M1 Dual Carriageway from Lilongwe City Centre to Kamuzu International Airport Project (Linked to Record ID#72400 and #69731)

Narrative

Full Description

Project narrative

In 2015, the Chinese Government pledged to provide $45 million to the Government of Malawi for the M1 Dual Carriageway from Lilongwe City Centre to Kamuzu International Airport Project. Then, in September 2017, the Chinese Government agreed to finance a feasibility study for the project. The feasibility study was undertaken in November 2017. Then, on November 15, 2018, the Chinese Government and the Government of Malawi signed a grant agreement for the M1 Dual Carriageway from Lilongwe City Centre to Kamuzu International Airport Project. The estimated monetary value of the grant commitment from China’s Ministry of Commerce (MOFCOM) is RMB 150 million. The purpose of the project is to upgrade a 9.5 km road (M1) from the Kamuzu International Airport (KIA) Junction in Lumbadzi to Lilongwe City Center. The stretch of road is to be upgraded from two lanes to four lanes, with independent bicycle lanes and sidewalks on both sides. The project has four road sections: (i) the KIA turn off to Alimaunde in Kanengo, (ii) the Kanengo to Mchinji Road roundabout, (iii) the Mchinji Road roundabout to BIWI, and (iv) BIWI to Bunda turn off. It is being co-financed by the Japan Bank for International Cooperation (JBIC), according to the according to the 2017 Malawi National Transport Master Plan. Shandong Luqiao Group Company Limited is the contractor responsible for project implementation. Its work is being supervised by a consortium consisting of CCCC First Highway Consultants Co. Ltd. and X'ian Fangzhou Engineering Consulting Co. Ltd. The project was originally scheduled to reach completion in November 2018. However, it did not officially commence until December 28, 2021. The project passed a mid-term inspection in August 2023. Then, on December 19, 2023, Malawi's Minister of Transport and representatives from the Economic and Commercial Counselor's Office of the Chinese Embassy in Malawi conducted an on-site project inspection. As of January 2023, the project had reportedly created employment opportunities for over 200 Malawians.

Staff comments

1. This project is also known as the Malawi Capital Airport M1 Highway Upgrading Project, the Lilongwe Dual Carriageway Project, the Lilongwe Dual Carriageway from Kanengo-Mchinji Roundabout on the M1 Road Project, and the Dual Carriageway from Lilongwe City Centre to Kamuzu International Airport Project. The Chinese project title is 马拉维M1公路项目 or 援马拉维首都机场M1公路升级改造项目. 2. This road is also known as the dual carriage from Kanengo through Area 25, Area 49 to Mchinji Road. 3. The project record may be linked to Record ID#72400 and #69731. This issue warrants further investigation. 4. Several sources suggest that the monetary value of the grant commitment is $50 million. For the time being, AidData relies on the RMB 150 million figure disclosed by the Chinese contractor responsible for project implementation (https://www.dropbox.com/s/st3y3nhw8cw2cpt/%E6%96%B0%E8%91%A1%E8%90%84%E6%A3%8B%E7%89%8C%E5%B9%B3%E5%8F%B0%E7%BD%91%E7%AB%99-%E9%A6%96%E9%A1%B5-%E6%AC%A2%E8%BF%8E%E6%82%A8%21%21%21.pdf?dl=0). This issue warrants further investigation.