Malawi has signed a bilateral cooperation agreement with the People’s Republic of China that commits the Asian giant to financing infrastructure projects with a combined price tag of $1.7-billion in the Southern African country.

Malawi’s President, Peter Mutharika, said at a press conference in Lilongwe, the capital city, that the agreement was signed in Bejing during a meeting that ran from October 10 to 12.

Mutharika said the meeting approved three projects for immediate implementation, including the $667.2-million construction of a 300 MW coal-fired power station at Kam’mwamba, in the southern Neno district; the $50-million national identity project, which is to produce identity documents for the country’s citizens; and the $285.4-million reconstruction of Chileka International Airport, in the commercial city, Blantyre.

The other projects covered by the pact include construction of the 140 km Tsangano–Mwanza road at a cost of $169.4-million and the 129.5 km Mangochi–Makanjira road at a cost of $151.7-million. Both roads are in the south of the country.

Also included is the $189.3-million upgrade of the Phombeya–Makanjira–Nkhotakota–Chatoloma 220 kV power line and the construction of a dual carriageway in Lilongwe.

“China will finance all these projects through concessional loans. “A team of experts will be visiting Malawi before the end of December this year to discuss the technical aspects of the projects with their counterparts,” said Mutharika.

He said China would also provide a $23-million grant for the construction of the Blantyre district hospital and cancer centre.

The Chinese will also provide Malawi with a $1-million grant to fund the technical services for the management of the Bingu national stadium, in Lilongwe. China financed the construction of the state-of-the-art stadium, which is nearing completion.

Another grant, of $3-million, will fund the construction of a new Ministry of Foreign Affairs building in Lilongwe.

“This is a sign of the strength of the bilateral relations that exist between China and Malawi. The Chinese are our friends and there are no conditions at all attached to these projects. They are soft loans and grants,” said Mutharika.

Malawi severed ties with Taiwan and embraced its rival, the People’s Republic of China, in 2007. China has since financed a number of projects in Malawi, including the construction of a new Parliament building in Lilongwe, the Bingu national stadium, the Karonga–Chitipa road, a five-star hotel in Lilongwe and the Malawi University of Science and Technology, in the southern district of Thyolo.