Cost of Nsanje rail to increase
Construction firm working on rehabilitation of a 70 kilometres rail stretch in Nsanje, China Railway – CR20, says the cost for the implementation of the project will likely increase.
Business and technical development manager for CR20 Vitumbiko Mumba disclosed this on Thursday when Secretary to the President and Cabinet (SPC), Colleen Zamba, inspected the project in the district.
Mumba attributes the proposed upward adjustment to the project cost to the changes in scope of work due to devastation caused by cyclones, the rail stretch experienced after the initial designs of the project.
He has projected that the cost for the project will likely jump from the initial K68 billion to K90 billion.
The SPC says rail rehabilitation works, currently at 20 percent, once completed will significantly reduce cost of transportation in the country.
Zamba disclosed that; “30 percent of the Malawi’s income is channelled towards Cost, Fleet and Insurance hence the revamping of the rail transport will likely reduce associated costs.”
The Marka boarder Bangula rail stretch rehabilitation project will not be completed by November 2023 as earlier planned and now works are projected to be completed by December 2023.