Government is seeking to get a loan of £26.5 million (K19.9 billion) to support implementation of Liwonde-Balaka water supply project.
Minister of Finance Felix Mlusu said the project is critical as it will support the livelihood of surrounding people through provision of portable water and also create jobs during implementation period.
He said Liwonde-Balaka areas demand 8.7 mega litres of water per day but the current production only supports 2.3 megalitres.
Mlusu added that 33 percent of the production is lost to illegal connection as well as aged infrastructure.
Through the project, government will be able to construct a 20 megalitres treatment plant, with Shire River as the source of water, among other activities.
The loan is to be repaid for a maximum of 20 years, with an interesting of 1.1 percent and loan service charge of 1 percent.
Commenting on the matter, Democratic Party spokesperson on the matter, Werani Chilenga, cautioned the level of borrowing, stressing that there is too much borrowing which is not healthy to the country.
Chilenga also asked the minister to consider bringing a Water Bill that targets addressing water challenges in rural communities other than focusing on urban areas only.
He also said government should consider increasing water fund from K12 million to K50 million for communities to have access to water through construction and maintenance of more boreholes.
Parliament has passed a loan authorization bill that seeks to borrow 26.5 million Euro, approximately 19.9 billion kwacha for Southern Region Water Board, SRWB Water Supply and Sanitation Project.
Felix Mlusu, Minister of Finance told Parliament that the loan is being obtained from the European Investment Bank to upgrade water systems for Liwonde and Balaka.
But Werani Chilenga, Natural Resources Committee Chairperson has said his committee is worried with government’s appetite for borrowing.