Finance minister, Ken Kandodo, said the bill will assist local authority projects in the country.
The bill has four components which will see the implementation of local authority projects at all levels in the authorities, said Kandodo.
Deepening enterprise development, growth centre development, local authority capacity enhancement and programme support are the four components of the bill.
Karonga Nyungwe MP, Khwauli Msiska asked government to outline priorities of the loan for it to be of benefit to all Malawians.
People need to develop from this facility as it is Malawians who will be repaying the loan. After we have repaid the loan we have to see tangible development on the ground, said Msiska.
The loan will be payable in 40 years with a grace period of 10 years at 1% interest per annum and a 0.57 service charge.
The house has also passed the International Development Association (IDA) (Regional Communications Infrastructure Project) Loan (Authorization) and International Development Association (Multi-Sectoral HIV/AIDS Project) (Authorization) bills.
The bills seek to authorize the finance minister to borrow from IDA K13.5 million to finance regional communications infrastructure project and to obtain a grant of K42 billion to finance multisectoral HIV and AIDS projects respectively.
The bills have been passed without amendments.
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