05:49 am - Wednesday 21 November 2018

Idle hotel costs Malawi government 1 billion

By Amalawi - Sat Nov 30, 4:32 pm

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LILONGWE: The President Hotel at the Bingu International Conference Center in Lilongwe is yet to start operating but government continues to lose millions of kwacha monthly.

Maintenance costs and loss of revenue have so far spiraled to K1 billion. The current PP government has ignored all projects that were initiated by the previous government of late Bingu Wa Muntharika, that includes the technology , Nsanje port and the green belt project.

The Tourism Minister Moses Kunkuyu said “I cannot confirm the figures, but certainly to keep the Hotel in its glory we have to maintain it properly….and proper maintenance has some costs attached,”

“However, it should be understood that we should follow due procedure in identifying a permanent operator,” he said.

Bingu International hotel

Bingu International hotel

In 2012, government cancelled a contract it had entered with Peermont and engaged Legacy Holdings but operations are yet to start.

Meanwhile, there are reports that Peermont is suing government for breach of contract.

The state-of-the-art 95 million US dollars hotel was constructed with money borrowed from China in a 30 year loan.

The magnificent President Hotel is part of the Bingu International Conference and was built by the late President Bingu wa Mutharika with a loan from the Chinese

 

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