Parliament nods to SVTP-2 Financing

26th July 2022:  Parliament this morning approved Loan Authorization Bill Number 25 of 2022: Shire Valley Transformation Programme Phase II, amounting to US$134 million under the World Bank’s International Development Association (IDA).  

Members of Parliament on the floor underscored the importance of the Programme to the national economy and improved livelihoods for the people of the Shire Valley.  

A sitting of the National Assembly of Malawi
Picture courtesy: National Assembly of Malawi

Reacting to the passing of the Bill, Director of Irrigation Services, Engineer Geoffrey Mamba said the funding will go a long way in boosting the Government of Malawi’s efforts to increase agricultural productivity and commercialization in line with the aspirations of MW2063.  

The funding for the second phase of the SVTP is a great boost to the Ministry of Agricultureโ€™s quest to attain aspirations of MW2063 through reducing the Countryโ€™s over-dependence on rain-fed agriculture.

“The funding for the second phase of the SVTP is a great boost to the Ministry of Agricultureโ€™s quest to attain aspirations of MW2063 through reducing the Countryโ€™s over-dependence on rain-fed agriculture. The financial resources will enable the construction of the life-transforming Shire Valleyโ€™s main irrigation infrastructure and associated capacity development initiatives of farmer organizations” said Engineer Mamba.

Engineer Mamba during an interview in Chikwawa

The funding will necessitate the construction of over 80kms of the irrigation canal from Lengwe National Park to Bangula. However, Government will have to source additional funding for the construction of this section.

“We need a resource base of, at least, US$285million to finish construction of the canal up to Bangula. Farmers are waiting for the materialization of commercial farming in the Shire Valley,” he said.

Commenting earlier on the World Bank’s commitment towards the Shire Valley Irrigation Scheme, SVTP Task Team Leader at the World Bank Joop Stoutjesdijk reiterated the Bank’s commitment to complete the project.

“The World Bank is committed to seeing this project completed. Yes, the project has faced challenges from Cyclone Ana which damaged the intake foundation and part of the siphon but, we anticipate the project to achieve its intended purpose through hard work and determination. As a development partner for Malawi, we are committed to this cause,” he said. 

The SVTP is a 14-year project that seeks to transform smallholder into commercial farming. The project will be implemented in three overlapping phases from 2018 to 2031.  

So far, three bridge crossings, the flume and 14 drainage works have been completed. Over 4.09kms of the canal has been paved with concrete and three siphons and the fish barrier is under construction. In addition, 46kms of Main Canals 1 and 2 have been cleared and excavation works have commenced.  

Cumulatively, 45,833 land parcels have been adjudicated and demarcated since the process started in September 2020. These land parcels cover 22,299 hectares of land belonging to 48,175 landowners (23,547 male, 24,628 female). Five of the 14 irrigation blocks (commercial farms) in Phase 1 have registered as cooperatives with the Registrar of Cooperative Societies. Registration of the remaining nine blocks will be conducted once the final list of land owners has been released following map displays and data cleaning by the Ministry of Lands.