Mining & Trade News

The National Construction Industry Council (NCIC) says the outbreak of the novel coronavirus (Covid-19) has affected operations and the supply chain of the construction industry.

NCIC CEO Linda Phiri told Mining & Trade Review in an interview that the Covid-19 pandemic has hit the construction industry due to the sector’s over reliance on imported products and government’s restriction measures to ease the spread of the virus, which have lowered work performance.

Phiri said: “The Construction Industry has been affected mainly in three perspectives, first is the disturbance of the supply chain including source of materials both imported and local materials as borders, shops and factories either have remained closed or scaled down on operations.”

“Secondly, the operations on sites had to be scaled down or modified which has affected the rate of progress of the works; and finally incorporation of measures to control and manage the spread of the pandemic has affected the financial performance of the construction industry.”

Phiri said the pandemic has also affected the council’s financial performance following the suspension of all trainings that the council offer and charges its levy.

The NCIC’s financial performance is directly related to the performance of the construction industry as levy is charged on completed and certified works.

Phiri said since the trainings have been suspended and most projects slowed down, the rate of levy collection has slowed down, and this as well has resulted in non-collection of fees.

“Following the disturbances in the stated financial sources of the Council, if the situation continues to the end of the year the Council could lose over 30% of its revenue from levies and over 70% of its revenue from training fees,” she said.

Meanwhile, in an attempt to fight against the pandemic, the Council has collaboratively implemented guidelines in all construction sites to ensure that all players are in line with certified preventive measures.

She said the guidelines include; ensuring proper sanitation facilities are in place and procedures properly followed with regard to personal hygiene, sanitizing and restrictive use of tools and equipment; social distancing; and general management of site.

Phiri urged stakeholders in all construction sites to follow the guidelines warning that the Council will be the daily watchdog monitoring compliance and that all non-complying projects will be suspended as a penalty.

NCIC works in liaison with various stakeholders identifying areas that need standards or adoption of standards and coordinating the development of various standards for the construction industry, and promoting the use and compliance with standards.

The Council also plays the role of ensuring that all contractors, consultants, material manufacturers and suppliers and all players in the construction industry are operating within roles set forth in the NCI Act of 1996 and codes of ethics of 2009.

Certification from the council gives a path way for construction companies to carry out construction related activities in Malawi while committing to professional and ethical conduct.

The Council also ensures that the players give a paramount consideration to issues of safety, health and welfare of the public; perform services only in areas of their competence; refrain from any corrupt practices and deception acts; and conduct themselves honorably and lawfully.

The Malawi government says it has reached an advanced stage in its plans to upgrade the M1 section from Chidzanja Road Junction to Mchinji Roundabout in Lilongwe to a dual carriage way.

State President Arthur Peter Mutharika said in his State of the Nation Address presented in parliament on June 5, 2020, that the dual carriage way and the Area 18 Interchange currently under construction will help reduce congestion in the Capital City.

Mutharika said: “In order to ease traffic congestion which has of late affected our major cities, Government is implementing some road projects to improve the flow of traffic in the cities and urban centres.”

“Some of these interventions include: Construction of Traffic Interchange at Area 18 on the Parliament Roundabout – Bingu National Stadium Road in Lilongwe which will be completed in the next financial year; and upgrading of the M1 Road in the city of Lilongwe involving construction of a dual carriageway from Chidzanja Road Junction to Mchinji Roundabout. Construction works on this project will commence soon.”

Mutharika also said the Malawi government is advancing with preparations for the rehabilitation of the M1 Road from Kamuzu International Airport to Mzimba Turn Off Junction and Kacheche to Chiweta which will cover a total distance of 347 km.

He said the road fromNsipe to Liwonde, which covers a total distance of 55 km will be upgraded during this coming financial year.

“Weighbridge stations are also to be constructed in Dedza, Bwengu in Rumphi and Madziabango in Chikwawa,” he said.

Rural roads have also been considered in this coming financial year, as the government has launched 72 contracts for construction of bridges with funding from the Roads Fund Administration as a complementary package to rural road improvement projects.

As one way of securing additional revenue for road maintenance, the Malawi government is planning of implementing a Toll gate system on selected sections of the M1 road.

Meanwhile, the Malawi government is also implementing some projects aimed at improving the rail, water and air transport.

Mutharika announced that on air transport, Government has procured navigation and communication equipment, and five fire-fighting engines for Kamuzu and Chileka International Airports in order to ensure safety and security of the airports and airspace.

 On rail transport, he said Government, through the National Transport Master Plan, is working on the construction of a combined rail/road bridge for the Ruo Breakaway at Osiyana near Makhanga in Nsanje on the Limbe– Marka Railway Line and Thyolo–Makhanga Road.

He also said government is rehabilitating and upgrading the 399 km Nkaya – Mchinji Railway Line; constructing the Limbe – Sandama section on the Limbe – Marka Railway Line; and a new railway bridge across the Shire River at Shire North in Balaka.

On water transport, he said Government is implementing the Likoma Jetty project, which commenced in 2019/2020 Financial Year.

“Considerable progress has been achieved in the construction of the jetty whose completion would be very beneficial especially to Malawians living on the islands of Likoma and Chizumulu,” said Mutharika.

Malawi has prequalified a consortium comprising SN Power Invest Netherlands B.V and Electrite De France SA (SN Power and EDF SA) as a strategic partner for the construction of the 350MW Mpatamanga Hydropower Project on Shire River.

Malawi’s Public Private Partnership Commission (PPPC) Acting CEO Audrey Mwala says in a Press Statement that after successfully passing the prequalification stage, the consortium has subsequently been invited to submit a proposal.

“During the next and final phase of the tender process, the bidder will be required to submit a proposal that demonstrates, to the Government’s satisfaction, the bidder’s capability and commitment to implement a project that is reliable and affordable for the people of Malawi,” says Mwala.

The Malawi Government intends to develop the 350MW hydropower project under a Public Private Partnership (PPP) project finance development model which will require the selected investor to form a special purpose vehicle to build and operate the power plant.

The strategic partner is expected to have 70% shareholding in the project while state-owned Electricity Generation Company (EGENCO) will retain 30%.

Mwala says a total of the 15 firms submitted expressions of interest for the project but the two European energy firms were prequalified after they teamed up and submitted a joint bid as a consortium.

The Project will consist of two hydro power plants: a main power plant, main dam and reservoir with daily storage capacity capable of generating 309MW of electricity on a peaking basis; and a regulating dam with a hydro power plant capable of generating 41MW of base load electricity, downstream from the main reservoir and power plant.

The Malawi Government partnered with the World Bank’s International Finance Corporation (IFC) as co-developer to undertake early stage development activities for the Project, including the preparation of Project Agreements, technical, environmental, and social studies and reports.

A comprehensive World Bank-financed feasibility study for the project was completed in 2018.

The Malawi Government conducted the PPP feasibility study under the PPP Act, whose report was approved by the Ministry of Finance on October 31, 2019.

The Malawi Government has planned to construct new water supply schemes while it continues with rehabilitation and extension of existing ones.

State President Arthur Peter Mutharika said this in his state of the nation address during the opening of the ongoing parliamentary budget meeting.

“Government will continue with construction of new water supply systems, rehabilitation and extension of existing schemes through the various projects currently under implementation but also introduce new projects to start in the upcoming financial year,” he said.

He said the projects include completion of the rehabilitation of six gravity fed schemes under the Sustainable Rural Water Supply and Sanitation Project, rehabilitation of Nkhatabay Water Supply System and construction of New Water Source on the Shire River for Blantyre Water Board.

Mutharika said in the forthcoming Financial Year, Government plans to rehabilitate seven gravity fed schemes and rehabilitate 560 boreholes under the Malawi Drought Recovery and Resilient Project in 19 drought affected districts.

He said in the last financial year, his government carried out the rehabilitation of 12 gravity fed schemes, development of 450 boreholes and construction of 266 sanitation facilities in schools, market centers and health centers in Rumphi, Nkhotakota, Phalombe, Mangochi and Ntcheu under the Sustainable Rural Water and Sanitation Infrastructure Project and the Malawi Drought Recovery and Resilience Project.

Mutharika said his government drilled 440 boreholes bringing the total number to 545 across all the 19 drought affected districts.’’

The government also completed the construction of a new water supply project tapping water from Likhubula River in Mulanje to supply Blantyre City. The scheme brings an additional 20,000 cubic meters of potable water to the city of Blantyre and surrounding areas.’

He said his government also continued with construction works to raise Kamuzu Dam 1 under Lilongwe Water Board and completed the rehabilitation and expansion of Dowa, Dwangwa, Salima and Ntchisi Schemes under Central Regional Water Board.

The Malawi Government says procurement of an Engineering, Procurement and Construction (EPC) contractor for the Mozambique-Malawi power interconnector will be finalized by December 2020.

“Under the Malawi-Mozambique Interconnector Project, the two power utility companies, ESCOM Ltd and EDM of Mozambique negotiated   and   signed   commercial agreements, including the Power Purchase Agreement. The procurement of the EPC Contractor is underway and is expected to be finalised by December, 2020,” said Minister of Finance, Economic Planning and Development Joseph Mwanamveka in his presentation of the 2020/2021 national budget.

Mwanamveka said preparations for feasibility studies for the construction of the Zambia-Malawi Power Interconnector are also underway on the Zambian side and will be used to update the feasibility study report on the Malawian side which was done a few years back.

The Malawi Government is also developing a 350MW hydropower project at Mpatamanga gorge on the Shire River under a Public Private Partnership arrangement.

Mwanamveka said currently, the process of identifying the main private investor is in progress and is expected to be completed by September, 2020.

He also said in the 2019/2020 fiscal year, Government established a new company called Malawi Power Market that will replace ESCOM as a single buyer of all generated electricity.

“This company will enable other players to enter into the power market as distributors,” he said.

He said in the near term the sectors that will drive growth include Agriculture; Wholesale and Retail trade; Mining and Quarrying; Electricity, Gas and Water; Information and Communication; and Financial and Insurance Services.

The Ministry of Finance and Economic Development has allocated K61.4 billion to boost operations of Energy, Industry and Tourism sectors representing 3% of the total budget in the 2020/2021 fiscal year.

Malawi’s 2020/2021 budget is titled “Economic Recovery, Mitigation and Building Resilience” and its priority areas include Economic growth, job Creation and Infrastructure Development.

In the Budget, the Minister has pegged country’s expenditure for the year 2020/2021 at K2.023 trillion representing 28.3% of GDP and an increase of 9.9% over the 2019/2020 midyear revised estimate.

Medical Geology is defined as the science dealing with the relationship between geological factors and health problems in humans, animals and plants. It is an emerging interdisciplinary scientific field studying the relationship between natural geological factors and their effects on human and animal health.The Commission on Geological Sciences for Environmental Planning defines medical geology as, “The science dealing with the influence of ordinary environmental factors on the geographical distribution of health problems in man and animals. There is a body called The International Medical Geology Association (IMGA) which aims at providing a network and a forum to characterize the properties of geological processes and agents, the dispersal of geological material and their effects on human populations and there are a series of conferences called MEDGEO that are held by IMGA once in every two years.

1.Branches of Medical Geology
Medical geology can be split into two primary branches based on the number and variability of element sources within the environment. The first branch is strictly related to the natural occurrence of elements in the geologic environment (e.g., ingestion of food grown in soils with either element deficiencies or toxicities), whereas the second branch relates to elemental occurrence relative to natural hazards (e.g., earthquakes, volcanic eruptions, flooding and landslides)

2.Geology
The geology of an area has a direct impact on the regional input of elements into the soil, air and water. In turn, these inputs, depending on composition, may result in adverse health effects in humans, animals and/or plants. Health issues related to a region’s geology are visible in both humans and animals on almost every continent. The diverse geographical and geochemical source of human foods in developed nations creates a “homogenized diet” reflecting materials grown on a range of soil types, each with different chemical characteristics and potentially imported from a number of countries. As a result of this complex sourcing mechanism, element deficiencies or toxicities are generally rare in regards to dietary intake. Additionally, element imbalances in the soil are often amended before the growth of crops, thus eliminating any subsequent problems. Thus, trace element deficiencies and/or toxicities that are a result of geological conditions are much easier to identify in animals and people in developing countries since much of the food and water ingested is obtained directly from the surrounding environment.

According to Davies T.C.2010, a large body of evidence points to signi?cant health effects resulting from our interactions with the physical environment and we continue to recognize connections between geological materials and processes and human and animal disease. In Africa, these relationships have been observed for many years, but only recently have any real attempts been made to formalize their study. Africa is a continent with a diverse geography, characterized by a range of altitudes, a peculiar hydrological network created in part by the formation of the Great Rift Valley on the eastern ?ank and arid lands typi?ed by the Sahara and the Mega Kalahari. Volcanic activity accompanying rifting and formation of most of the highlands and mountains has released various trace elements, mostly above background levels, into the environment. A unique distribution pattern of these elements has developed in more recent geological times, following pronounced separation due to extreme tropical conditions of weathering, leaching and eluviation. It is therefore possible to delineate large areas of the continent containing element de?ciencies or toxicities, which are closely related to the local geology and/or geographical location. In a region where rural communities are still largely dependent on water and food sources that are locally derived, the above setting provides an attractive opportunity for studying the in?uence of geochemical factors on the distribution of diseases in man and animals.

3.Selected Studies on Medical Geology
There are various studies on medical geology which include, but not limited to environmental geochemistry and human health, water and human health, soil pollution and remediation, atmosphere pollution and human health. Studies associated with analytical methodology, medical geology in toxicology and epidemiology, medical geology, public health and regulatory sciences just to mention but a few. The geology and tectonic characteristics constitute an appropriate environment for the presence of toxic and heavy metals. The rapidly expanding field of medical geology deals with the relationships between natural geological factors and health, both human and animal. It also aims to improve our understanding of the ways in which the geological environment has an impact on the geographical distribution of health problems. There have been books from the work of various cross cutting geoscientists and medical/public health researchers that have addressed health problems caused, by geological materials ( atmospheric dust, lapilli tuffs/volcanic ash,minerals, rocks, and water) and processes earthquakes). Among the environmental health problems discussed in the volume are: human and animal exposure to toxic levels of trace essential and non-essential elements such as mercury, arsenic, trace element deficiencies; exposure to natural dusts and to radioactivity; naturally occurring organic compounds in drinking water; and the effects of volcanic emissions. Examining the positive side of the equation as well as the negative, the book also deals with the many health benefits of geologic materials and processes. It provides examples from different continents as well as a state-of-the-art review of the latest developments in the medical geology. The authors are all recognized geoscientific and medical experts working in the fields of geology, geochemistry, pathology and medicine, veterinary, biology etc.

In trying to highlight an example where medical geology has made an impact, there have been high levels of geogenic cadmium (Cd) found in some soils of Jamaica, particularly in the central part of the island. The potential health impact on residents who consumed foods grown on these soils was determined and food which have shown the greatest affinity for Cadmium uptake are mainly green leafy ones. Besides, the tropical terrains of the Indian subcontinent and the neighboring regions also provide some of the best examples in medical geology where the impact of the geosphere on human health is markedly seen and identified. The impact of the natural environment on human health has been a subject of study in China for thousands of years to date. China’s varied geology and geography and its large population living off the land have resulted in the presence of virtually every known environmental health problems related to medical geology.

There is a close relationship between medical treatment and geology. Worldwide, there are more than 10 million new cancer cases each year, and cancer is the cause of approximately 12% of all deaths. Given this, a large number of epidemiologic studies have been undertaken to identify potential risk factors for cancer, amongst which the association with trace elements has received considerable attention. Trace elements, such as, arsenic, cadmium, selenium, zincand nickel, are found naturally in the environment, and human exposure derives from a variety of sources, including air, drinking water, and food. Trace elements are of particular interest given that the levels of exposure to them are potentially modifiable. In this review, we focus largely on the association between each of the trace elements noted above and risk of cancers of the lung, breast, colorectum, prostate, urinary bladder, and stomach. Most studies have reported no association between selenium and risk of breast, colorectal, and stomach cancer, and between zinc and prostate cancer risk. There is compelling evidence in support of positive associations between arsenic and risk of both lung and bladder cancers, and between cadmium and lung cancer risk.

In another example where medical geology has been applied is the increasing use of pesticides and chemical fertilizers, especially the fertilizers with nitrates compounds, which have been common for the increased production of agricultural crops, has caused the nitrate pollution in the (soil, water, and environment). They have caused a lot of damage to humans and animals. Accumulation of nitrates in different kind of vegetables such as; green pepper, tomatoes, egg plants, watermelon, cucumber, and red pepper have been studied in some geographical areas and analysis of the samples was sent to the soil and water laboratory. The final results from the chemical analysis of samples showed that the mean levels of nitrates from the samples of the fruit crops in the those areas were all lower than the critical levels but from nutritional point of view it is argued that these quantities of dry matter do not constitute a health problem in humans.

In ecotoxicology and Environmental studies carried out in fast developing cities in China, risks related to heavy metal pollution in urban construction dust fall were highlighted. There is high metal pollution levels of road construction, there is a significant correlation of lead and zinc metals in road construction dust. The studies also showed that metals in construction dust fall pose higher ecology risks even at Wuhan.

All of the above studies show that knowledge of geology and geomorphology is essential to understanding, and thus eradicating, or preventing, a range of environmental health problems.

The Malawi Government has announced plans to cushion the country’s tourism sector which has greatly been hit by the coronavirus (Covid-19) pandemic.

Speaking during the opening of the 2020/2021 budget meeting of parliament in Lilongwe, State President Arthur Peter Mutharika said the plans include suspension of 1% Tourism Levy on tourism goods and services consumed;general deferment of business loan repayments; and encouraging voluntary pay cuts in the sector to sustain existing jobs.

Mutharika also said his government is developing a bailout fund to support the tourism sector.

He said in order to build resilience in post-COVID-19 period, Government is developing a National Tourism Crisis Management Strategy and Plan for effective coordination of crisis management in the sector.

He said: “Government will soon undertake a comprehensive review of the Tourism and Hotels Act to among others, establish a semi-autonomous Tourism Authority.”

“Government will also develop a Tourism Master Plan and carry out a feasibility study for the development of Nankumba peninsular as a tourism hub.”

Mutharika stressed that tourism remains a priority sector and a vehicle for economic growth and wealth creation though the emergency of the pandemic has adversely affected the sector’s contribution towards Gross Domestic Product (GDP).

He said: “The anticipated financial and job losses in the sector are huge and likely to worsen should the pandemic persist.”

“However, in order to mitigate the impact of the pandemic, Government is implementing measures to ensure that the sector is back on track and our economy is breathing normally.”

On trade and industry development, Mutharika promised continued reforms in the sector to facilitate an enabling environment for investments.

He pointed out that his government has already successfully implemented other reforms in the sector including the introduction of Electronic Permit (E-permit) System that has reduced the time it takes to obtain various permits such as Business Residence Permit and Temporary Employment Permit from six months to five days.

He said the Malawi Government also reviewed the Investment and Export Promotion Act which aims at strengthening Malawi Investment and Trade Centre in order to improve its capacity on investment and trade promotion.

Mutharika pledged that in the next Financial Year, Government will continue to create a conducive environment for trade and industry by reviewing related national policies including Business Licensing Policy and Anti-Counterfeit Policy.

He also said under his leadership, the Malawi Government will continue the implementation of the National Export Strategy which focuses on strengthening the private sector, investment promotion, trade facilitation and economic empowerment.

In 2019, Government projected an economic growth rate of 5.5% in the year 2020 but this seems a tall order due to the Covid-19 pandemic, which has affected many growth sectors of the economy forcing the government to revise the economy growth projection for 2020 to1.9%.

Government has also revised downwards the real GDP growth projection for 2021 from an anticipated 5.8% to 4.5%.

The Electricity Generation Company (EGENCO) says it is recording tremendous progress in the Chizumulu and Likoma Islands solar electrification project despite the challenges posed by the coronavirus (Covid-19) pandemic.

Senior PRO for EGENCO Moses Gwaza says currently overall progress of the work is at 39% for Likoma and 31% for Chizumulu.

“We are making progress, the Islands Solar Power Supply project is taking shape despite logistical challenges posed by the pandemic,” he says.

Gwaza explains that, among other things, Covid-19 affected manufacturing and shipment of some components needed in the plants.

“At some point in time, the progress of the project was at a standstill as contractors’ site officers were locked down in China and were in self quarantine upon arrival in Malawi,” says Gwaza.

He says, further to that, the project faced the challenge of flooding of the sites due to heavy rains as well as delays in tax waiver approval for equipment and other materials.

The solar project is being solely funded by EGENCO to the tune of about US$4-millon.

The project started on August 15, 2019 and was scheduled for completion by July 15, 2020 but Gwaza says the contract duration may be extended due to the logistical challenges posed by the global pandemic, which has forced airlines to suspend international flights and many countries to close their boarders.

Once completed, the solar-diesel hybrid plant is expected to supply electricity for the whole day to the people of Chizumula and Likoma who were having only 14 hours of electricity per day.

The Electricity Generation Company (EGENCO) says construction of Tedzani IV Hydropower plant is ahead of schedule despite coronavirus disease (COVID-19) woes.

EGENCO says in a statement posted on its Facebook page that boarder restrictions imposed by a number of countries as a containment measure against the pandemic is making it difficult for the company to import equipment for the project.

However, EGENCO states that if the situation improves and equipment starts flowing into the country smoothly, the project will be completed way ahead of time.

“Currently, 84% of the works at the Tedzani hydropower plant have been finished, and the contractor is engaged in final power house civil works, continuing spiral case and turbine installations,” reads the statement from the power utility.

The project is scheduled to be commissioned in September 2021 but EGENCO says with the outstanding progress being made, the 18MW plant may be commissioned in February 2021, all things being equal.

The project is being financed using proceeds of a Japanese grant of US$52-million while EGENCO is contributing US$4.8-million.

Japanese contractor Mitsubishi Corporation is executing the civil works for the power plant in a joint venture arrangement with Calik Enerji of Turkey.