§ Mr. Arnoldasked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement about British funding of the Viphya pulp and paper project in Malawi.
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§ Mr. Neil MartenThe United Kingdom Government continue to take a close interest in the Viphya forest project in Malawi which they have supported in the past with funds for planting and maintenance. The forest was originally designated for the production of pulp and paper. However, it has become clear that large scale pulp and paper production would not be viable in Malawi owing to the development of surplus capacity in neighbouring African countries. In 1980, ODA funded a feasibility study on alternative uses for the forest. We have been in close touch with the Malawi Government and with interested United Kingdom companies on the recommendations of the study, including a proposal for the gasification of wood to produce fertilisers and petrol. This latter technology is still under development and it is thus too early to judge whether it would be appropriate for the Viphya.
We have indicated to the World Bank our willingness to consider co-financing with it and possibly others, an extension of an ODA funded saw mill to produce additional timber products and further work on certain aspects of the study on alternative uses.