§ 36. Mr. Arnoldasked the Minister of Overseas Development what steps she is taking to assist the Malawi Government in the commercial development of the United Kingdom-funded Vipyha forestry project.
§ The Parliamentary Secretary to the Ministry of Overseas Development (Mr. John Tomlinson)The commercial exploitation of the plantations is being negotiated between the Malawi Government and potential investors. We have allocated a total of nearly £3 million for their maintenance and further development up to 1981.
§ Mr. ArnoldIs not it the case that a letter of intent was signed recently by a commercial consortium for the construction of a pulp and paper mill at Vipyha? Will the Minister indicate what are the prospects for commercial participation in this next phase of the development, in addition to the German and Scandinavian interests which have been mentioned already?
§ Mr. TomlinsonThe hon. Member is correct. The prospects at the moment are brighter than they have been at any time before. Negotiations last month between the Malawi Government and an international consortium of six firms, one of which was a British firm, resulted in the signing of a letter of intent for a 180,000-ton mill and the establishment of a joint co-ordinating and promotion committee which will try to finalise the arrangements, including finance, for the mill by the end of this year.
§ Mr. SpearingMy hon. Friend mentioned the sum of £3 million. Will this be over a single year or a number of 969 years, and will he indicate the proportion of total aid which will be given to Malawi of which this sum constitutes a part?
§ Mr. TomlinsonThe £3 million is for further development between now and 1981. My recollection is that it is divided roughly equally over the years to 1981. If that proves not to be correct I shall write to my hon. Friend. That figure represents about 12 per cent. of our bilateral capital aid which has been offered to Malawi for the period 1978–81.