Malawi – Shire Valley Transformation Program – Phase 2 (SVTP-2) (AFDB-P-MW-AA0-039)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Malawi
Geographic location where the impacts of the investment may be experienced.
Specific Location
Chikwawa and Nsanje Districts, Majete, Mwabvi, Lengwe, Elephant Marsh
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • African Development Bank (AFDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 20, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Malawi
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 26.62 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Grant Amount (USD)
$ 26.62 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 265.58 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ AFDB website

Updated in EWS Mar 12, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the AfDB, the project objective is to develop a resilient irrigated commercial agriculture and strengthen the management of natural resources in the Program area. Particularly, the Program aims at providing irrigation to over 43,000 ha through the phased construction of a new gravity-fed irrigation scheme to 27,600 ha of agricultural land presently under rainfed cultivation, as well as approximately 15,700 ha of existing irrigation areas that currently use electric pumps to abstract water from the Shire River.

SVTP is a 14-year Program implemented through a Series of projects with three sequential but partially overlapping projects in Chikwawa and Nsanje Districts in the Southern Region of Malawi. The Program is structured around four coordinated pillars:
(i) providing reliable, professionally managed, and sustainably financed irrigation service to a number of irrigators in a phased construction of an irrigation and drainage scheme;
(ii) supporting farmer organizations within a comprehensive land use plan, and supporting land tenure strengthening and voluntary consolidation;
(iii) establishing and investing in smallholder-owned commercial farm enterprises transitioning into commercial agriculture from subsistence farming and integrating them into commercial value chains; and
(iv) natural resources management in and around the Program area.

Protected areas in Majete Wildlife Reserve, Mwabvi Wildlife Reserve, Lengwe National Park, and Elephant Marsh RAMSAR site, will be beneficiaries through Component 4 of the project.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The AfDB categorized the project risks as follows -
Environmental Category: 1
Climate Safeguards Categorization: 2

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

In addition to the AfDB grant, the project is being financed by the following institutions:

World Bank IDA - US$ 124.87 million Loan
OPEC Fund - US$ 19.97 million Loan
Private sector - US$ 9.32 million Direct investment
Government Counterpart Contribution - US$ 84.8 million Cash and In-kind


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AfDB Team Leader:

Wael Mohamed Roshdy Soliman
Email: w.soliman@afdb.org

Implementing Agency - Ministry of Agriculture and Food Security:

Address: P.O Box 594, Lilongwe
Website: http://www.agriculture.gov.mw/

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.afdb.org/en/disclosure-and-access-to-information/request-for-documents. Under the AfDBÕs Disclosure and Access to Information policy, if you feel the Bank has omitted to publish information or your request for information is unreasonably denied, you can file an appeal at https://www.afdb.org/en/disclosure-and-access-to-information/appeals-process 

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at: https://www.afdb.org/en/independent-review-mechanism/ 

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How it works