 INFRASTRUCTURE |
It is recognised that infrastructure in the form of roads, electricity, water and telecommunications is inadequate. With respect to road government is committed to ensuring that appropriate funds are transferred by the Petroleum Control Commission to the National Roads Authority to enable it maintain and rehabilitate the road infrastructure. Government will also endeavour to continue seeking donor support for the National Road Authority to perform its functions in recognition of the fact that fuel levy funds alone are not adequate. Given the decentralisation programme, Government will also ensure that those feeder roads which will be the responsability of the District Assemblies to carry out this work and by ensuring that the Assemblies themselves are able to generate own funds for such operations.
(no 1 "The Kapichira Dam," An ESCOM project)
With respect to electricity, the major issue of concern is the frequent power interruptions which are costly to business through disturbing production processes or through extra costs of purchasing electricity generator sets. The Electricity Supply Commission of Malawi is the statutory body responsible for the generation, transmission, and distribution of electrical power throughout the country. Malawi’s current installed capacity is 224 megawatts, of which 214 megawatts is hydro-generated, 10 megawatts is diesel generated, and a standby facility generates 15 megawatts. Since 1998, electricity generation, transmission and distribution is open for private investment. Government efforts are underway to identify a strategic partner for ESCOM to acquire a stake in electricity distribution. In addition, it is also recommended to restructure ESCOM in order to introduce efficiency in the organisation. Grid interconnection with neighbouring SADC states like Mozambique is also under consideration to ensure the availability of adequate and reliable power supply.
| General Tariff where demand is less than 25kVA | | Fixed charge for single phase supply, per month | US$ 2.9216 | | Fixed charge for three phase supply, per month | US$ 4.0726 | | Charge per kWh | US$ 0.0524 |
Maximum demand Tariff (Low Voltage consumers) with demand of 25kVA supplied at 11kV or 33kV | | Fixed charge, per month | US $ 13.5954 | | Maximum demand charge, per kVA, per month | US $ 12.2901 | | Charge per kWh | US $ 0.0204 |
Maximum Demand Tariff (Medium Voltage Consumers) with demand of 25kVA supplied at 11kV or 33 kV | | Fixed charge, per month | US $ 13.0784 | | Maximum demand charge, per kVa, per month | US $ 11.5147 | | Charge per kWh | US $ 0.0193 |
Rates as of 20th April, 2000
Malawi has one of the lowest key performance indicators in telecommunications in the world with one telephone line for every 300 people and with an average waiting time for telephone connection of more than 10 years. However, government is committed to reversing this trend by initiating reforms at the Malawi Posts and Telecommunications Corporation including the de-linking of the postal services from the telecommunications as well as the establishment of additional telephone exchange units in various parts of the country, especially urban areas. | The establishment of the Malawi Communications Regulatory Authority (MACRA) is also an example of government efforts to ensure the efficient operation of the telecommunication system in Malawi. Government is keen therefore for MPTC to have a strategic partner as well as to ensure the availability of other related telecommunications services such as high speed data transmission of 64 kilobytes per second and paging services.
( No 2- photo)
Malawi has two mobile phone operators namely CELTEL limited and Telekom Networks Malawi (TNM). Cellphone services are therefore available in all major towns and cities. International dialing facilities are also available. Both operators are expanding to cover the rural areas in the country.
Finally, water supply in Malawi is governed by the Water Resources Act, the Blantyre Water Works Act and the Lilongwe Water Works Act. The overall authority on national water resources management is the Ministry of Water development. The Blantyre and Lilongwe Water Boards are responsible for the provision of water in those two cities. Connection charges can vary depending on the type of site, and its location in relation to the main source of water.
| Consumption charges | Quantity | Rates | | LILONGWE | First 100 cubic metres | US $ 0.64 per cu. metre | | | In excess of 100 cubic metres | US $ 0.82 per cu. metre | | | First 10 cubic metres | US $ 3.78 per cu. metre | | BLANTYRE | Up to 30 cubic metres | US $ 0.75 per cu. metre | | | Over 30 cubic Metres | US $ 0.88 per cu. metre |
Rates as of 20th April, 2000
Water supply constraints largely stem from huge debts accumulated by the water providers while at the same time having uncollected funds. It is therefore government’s intention to speed up reform of the water providers to ensure effective debt collection and hence availability of investment funds. It is also government’s intention to ensure the availability of adequate quantities of water through the construction of adequate dams and water reservoirs.
Malawi’s experience with infrastructure provision gives rise to questions of private sector participation in infrastructure development. In this regard with funding from the United States Agency for International Development (USAID) government has conducted a study examining the possibilities of allowing private sector participation in infrastructure development through various modes like Build-Own-Operate, Build-Operate-Transfer,…
Once agreement is reached on the practicality of the private sector participation, appropriate mechanisms will be initiated to ensure the creation of the relevant legal provisions to regulate the process. In addition, government recognises that apart from putting in place the necessary legal environment, there will be to create an environment conducive to the conduct of such business. In this regard, government will consider making available the necessary support like financial assistance to ensure the success of the programme. Experience elsewhere has shown that private sector participation in infrastructure provision is one way of making infrastructure more efficient and reliable and hence promoting private sector operations. |
