OREANDA-NEWS. June 16, 2015. European financial and technical support for investment to alleviate critical water shortages in Malawi’s largest city was confirmed today by the signature of finance agreements confirming a new EUR 24 million loan from the European Investment Bank to support the new EUR 49.2 million investment programme to be implemented by Lilongwe Water Board. The European Investment Bank is the world’s largest lender for the water sector and owned directly by the 28 European Union member states.

New water investment is essential as the population of Lilongwe is expected to double in the next 20 years. Crucial upgrading and improvements to the city’s water infrastructure will be managed by the Lilongwe Water Board over the next four years and increase water supply in low-income areas where services are currently limited as well as reducing water leakage. In this way the new investment will ensure efficient use of the existing water network and scarce water sources, as the city is dependent on water from the Lilongwe River. The project will both improve reliable water supply for customers and share water management best practice staff of the Lilongwe Water Board under a dedicated technical assistance programme.

The new support by European Investment Bank for crucial investment in the capital city was formally agreed in Lilongwe today by Pim van Ballekom, European Investment Bank Vice President responsible for lending in Africa and Goodall Gondwe, Minister of Finance, Economic Planning and Development for the Republic of Malawi.

“On behalf of the people and Government of Malawi, I am very happy to have signed this project which will help the Government address some of the bottlenecks facing the Lilongwe Water Board.” said Goodall Gondwe, Minister of Finance, Economic Planning and Development.

“The European Investment Bank has a successful track record of supporting water investment that has helped to secure the supply of clean water to millions of people across Malawi. Our new engagement in the country demonstrates the EIB’s continued commitment to supporting water investment that improves lives across Africa and around the world. Being able to see at first hand the impact of previous water investment supported by the EIB in Malawi shows the crucial need to continue to upgrade existing water infrastructure and expand the supply of drinking water to more communities. I am confident that the new project confirmed today will improve the quality of water supply and waste water treatment in Lilongwe for many years to come.” said Pim van Ballekom, European Investment Bank Vice President.

“With this new investment project Lilongwe Water Board is closing the gap between supply and demand. By increasing the supply of quality water we will secure the supply clean drinking water for 250,000 people by 2021. This will involve addressing critical issues concerning water quantity and quality, quality of service, efficiency, and continued capacity building of the local water practitioners. We are proud of the strong history of partnership between the EIB and LWB, and we are very honoured for this cooperation to be strengthened today.” said Eng. Alfonso Chikuni, Chief Executive Office of the Lilongwe Water Board.

"Access to water remains a challenge for many Malawians but with EU and EIB support 372 public water kiosks have now been constructed in Lilongwe, providing safe drinking water for many thousands of Malawians. The EU has also contributed EUR 5.5M towards addressing water and sanitation issues in 7 Malawian cities and towns. I welcome the news that the Lilongwe water board and the EIB will continue working together towards reducing leaks and improving services for the city." says EU Ambassador Marchel Gerrmann.

Mr. Alfonso Chikuni, Chief Executive Officer and other senior representatives of the Lilongwe Water Board, and Ambassador Marchel Gerrmann, Head of the European Union to Malawi, were also present.

The new investment programme managed by Lilongwe Water Board and backed by the European Investment Bank support will help to cater for expected increased demand for water in the city where water has been rationed for the last 3 years and the population is growing by 4% each year. This scheme includes increasing water storage capacity and supply by an additional 30,000 cubic metres of water a day to the city, construction of 100 water kiosks in low-income areas and replacing pipes and pumps that currently act as bottlenecks in the city water system. The water supply networks will also be expanded to areas of Lilongwe not currently connected.

Vice President van Ballekom is in Malawi for a three day official visit to the country, the first visit by high-level representatives of the largest lender for water investment worldwide. During the visit the EIB delegation will also visit successfully completed water investment projects previously financed by the bank. The new initiative represents one of the first public sector projects to be supported by the EIB since 2008.

Over the last five years the European Investment Bank has provided more than EUR 500 million to support water investment including in Mali, Niger and Burkina Faso in the Sahel, Cameroon in central Africa as well as Tanzania, Uganda, Lesotho and Zambia.

In 2014 the European Investment Bank provided more than EUR 2.5 billion to support infrastructure and private sector investment across Africa.