Water supply and sanitation in Mozambique

Water supply and sanitation in Mozambique

Access

Only about 43% of the Mozambican population has access to an improved source of water supply, and only 32% has access to adequate sanitation. Consequences on living conditions are multiple, ranging from poor health to lower productivity due to the time needed to fetch water.

Figures on access are controversial. For example, the WHO/UNICEF Joint Monitoring Program for water and sanitation estimates access to an improved source of water supply at 72% in urban areas and 28% in rural areas. These figures are based primarily on data from the 2003 Demographic and Health Survey. However, the Ministry of Public Works uses the water access figures of 38% in urban areas and 40% in rural areas. The number for rural access are derived from the number of boreholes and an estimated average number of households using a borehole. [ [http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/08/22/000020439_20070822115203/Rendered/INDEX/393070IDA1R20071022911.txt World Bank: WATER SERVICES AND INSTITUTIONALSUPPORT PROJECT, Project Appraisal Document] , p. 32 ]

"Source": Joint Monitoring Program WHO/UNICEF( [http://www.wssinfo.org/en/welcome.html JMP] /2006). Data for [http://www.wssinfo.org/pdf/country/MOZ_wat.pdf water] and [http://www.wssinfo.org/pdf/country/MOZ_san.pdf sanitation]

There are also conflicting figures about what are the target figures to meet the MDGs for water and sanitation by 2015. According to a World Bank document it means urban access to water increasing to 78% and rural access increasing to 56%. [ [http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/08/22/000020439_20070822115203/Rendered/INDEX/393070IDA1R20071022911.txt World Bank: WATER SERVICES AND INSTITUTIONALSUPPORT PROJECT, Project Appraisal Document] , p. 32 ] However, according to a MDG status report it means increasing access to 70% in both urban and rural areas. [ [http://www.wsp.org/UserFiles/file/1025200790904_L’Afrique_et_les_ODM_sur_l’eau_et_l’assainissement-Un_état_des_lieux_dans_seize_pays_africains.pdf World Bank/WSP/AfDB/EUWI/UNDP MDG WSS status report 2006] , p. 57 ]

Service quality

There are no reliable data on water and sanitation service quality in Mozambique. Most water systems provide water intermittently. However, three cities - Pemba, Quelimane, Nampula – have achieved continuous water supply as a result of private sector participation. [ [http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/IDA/0,,contentMDK:21258662~menuPK:3266877~pagePK:51236175~piPK:437394~theSitePK:73154,00.html IDA at work: Rebuilding Mozambique’s Water Supply Infrastructure] ]

History

In 1995, Mozambique approved a National Water Policy that emphasizes community participation and, for urban water supply, private sector participation. In 1998 the World Bank approved its First National Water Development Project in support of the National Water Policy. Other donors provided co-financing for the project.

In 1998 two key institutions were created to implement the National Water Policy: The regulatory agency CRA and the Asset Holding Company FIPAG. The government also approved a water tariff policy aiming at cost recovery.

In 1999 the government competitively awarded a hybrid lease/management contract for seven cities to an international consortium led by the French firm SAUR and including Aguas de Portugal. For Maputo and Matola it consisted of a 15-year lease contract and for the other cities of a 5-year management contract. [ [http://www.citizen.org/documents/Lessons%20from%20Mozambique.pdf Horacio Zandamela:The Maputo water concession, 2002] p. 17 ] The winning consortium also included a 30%-shareholding by a Mozambiquan holding company called Mazi of Mozambique. In the same year the World Bank approved its Second National Water Development Project [ [http://web.worldbank.org/external/projects/main?Projectid=P052240&Type=Overview&theSitePK=40941&pagePK=64283627&menuPK=64282134&piPK=64290415 NWDP II] ] In December 2001 SAUR withdrew from the consortium, ceding its leading role to Aguas de Portugal. [ [http://www.citizen.org/documents/Lessons%20from%20Mozambique.pdf Horacio Zandamela:The Maputo water concession, 2002] , p. 6 ]

In 2004 the five-year management contract for the smaller cities has been extended. At the same time, a four cities in the South - Xai-Xai, Chókwé, Inhambane e Maxixe - were included in the management contract. [ [http://www.cra.org.mz/?__target__=qgd CRA] ] In 2006 five cities of the center - Tete, Moatize, Chimoio, Manica e Gondola – were integrated and received technical assistance from the Dutch firm Vitens International. [ [http://www.cra.org.mz/?__target__=qgd CRA] ]

The World Bank’s 2006 completion report of the first project "rated the outcome for the project satisfactory, its sustainability likely and its institutional development impact substantial". [ [http://www-wds.worldbank.org/external/default/main?pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000090341_20060515103707 World Bank:NWDP II Implementation Completion Report] ]

In 2007 the government adopted a new national water policy. [ [http://www.cra.org.mz/?__target__=qgd CRA] ]

Responsibility for water supply and sanitation

Policy

The National Directorate of Water in the Ministry of Public Works and Housing is in charge of policy for water supply. Concerning urban water supply, Mozambique’s sector strategy is based on a delegated management framework – a public-private partnership set up, whereby assets are owned by the government and operations are managed by the private sector under a concession, lease or management contract. [ [http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/IDA/0,,contentMDK:21258662~menuPK:3266877~pagePK:51236175~piPK:437394~theSitePK:73154,00.html IDA at work: Rebuilding Mozambique’s Water Supply Infrastructure] ] The Water Supply Investment and Asset Fund - the Fundo de Investimento e Patrimonio do Abastecimento de Agua (FIPAG) – is an asset holding company in the urban water sector through which the operation of water services was delegated to private lessees.

While the strategy for urban water supply is well defined, there are no clear strategy for rural water supply or for sanitation. [ [http://www.wsp.org/UserFiles/file/1025200790904_L’Afrique_et_les_ODM_sur_l’eau_et_l’assainissement-Un_état_des_lieux_dans_seize_pays_africains.pdf MDG WSS status report 2006] , p. 58 ]

Regulation

The water sector is regulated by the Conselho de Regulacao do Abastecimento de Agua (CRA), with the objective to set tariffs and service quality targets, monitor compliance with the targets, review investment programs and to hear complaints by users and municipalities. CRA does not have yet the mandate to cover sanitation service.

Its main mission is “to ensure a balance between the quality of the service, the interests of consumers and the financial sustainability of the water supply systems.” [ [http://www.cra.org.mz/?__target__=cadeia CRA] ]

Service provision

FIPAG is the owner of water and sewerage assets in 13 cities. In the five largest cities, it has delegated service provision to a private company, Aguas de Mozambique. In the remaining cities, public municipal water companies operate and maintain the systems.

Financial aspects

Tariffs

No detailed and up-to-date data on water tariffs in Mozambique are available. In 2001 water tariffs in Maputo (excl. VAT) stood between 2350 (US$ 0.11/m3)and 7700 Meticais (US$ 0.36/m3) for residential customers, depending on the level of consumption. [ [http://www.citizen.org/documents/Lessons%20from%20Mozambique.pdf Horacio Zandamela:The Maputo water concession, 2002] p. 27, using 2001 exchange rate of 21,450 Meticais/USD of June 2001 as per www.oanda.com ]

Cost recovery

The government aims to gradually achieve full cost recovery for water supply, as stated in its 1998 water tariff policy. According to the World Bank, the urban asset holding company FIPAG is “achieving full cost recovery and can graduate from government subsidies”. [ [http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/IDA/0,,contentMDK:21258662~menuPK:3266877~pagePK:51236175~piPK:437394~theSitePK:73154,00.html IDA at work: Rebuilding Mozambique’s Water Supply Infrastructure] ] On the other hand, the Mozambique MDG status report for water and sanitation notes that the sector as a whole still strongly depends on donor financing. [ [http://www.wsp.org/UserFiles/file/1025200790904_L’Afrique_et_les_ODM_sur_l’eau_et_l’assainissement-Un_état_des_lieux_dans_seize_pays_africains.pdf MDG WSS status report 2006] , p. 58f. ] In rural areas revenues are by far insufficient to recover operation and maintenance costs. [ [http://www.wsp.org/UserFiles/file/1025200790904_L’Afrique_et_les_ODM_sur_l’eau_et_l’assainissement-Un_état_des_lieux_dans_seize_pays_africains.pdf MDG WSS status report 2006] , p. 59. ]

Investment

There are no reliable data on actual investments in the sector. It has been estimated that the water sector requires annual public investments of US$ 82m to reach the MDGs, compared to US$ 67m annually that have been “planned”. [ [http://www.wsp.org/UserFiles/file/1025200790904_L’Afrique_et_les_ODM_sur_l’eau_et_l’assainissement-Un_état_des_lieux_dans_seize_pays_africains.pdf MDG WSS status report 2006] , p. 58 ] According to the World Bank, in 2007 Mozambique’s delegated private sector management approach has attracted about US$ 350 million to urban water over the last six years. [ [http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/IDA/0,,contentMDK:21258662~menuPK:3266877~pagePK:51236175~piPK:437394~theSitePK:73154,00.html IDA at work: Rebuilding Mozambique’s Water Supply Infrastructure] ]

Financing

The Mozambique MDG status report for water and sanitation notes that the sector as a whole still strongly depends on donor financing and that donors finance about 80% of all investments between 1995 and 2005. [ [http://www.wsp.org/UserFiles/file/1025200790904_L’Afrique_et_les_ODM_sur_l’eau_et_l’assainissement-Un_état_des_lieux_dans_seize_pays_africains.pdf MDG WSS status report 2006] , p. 58f. ]

External cooperation

World Bank

A first World Bank project (1998-2006) supported building capacity, rural water supply , water resources management, and the preparation of a new urban water supply strategy through a US$ 36m credit. This strategy, implemented during the second water project (2004-2009), supported large-scale civil works for urban water supply systems in five cities – Maputo (the capital), Beira, Quelimane, Nampula and Pemba through a US$ 75m credit. [ [http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/IDA/0,,contentMDK:21258662~menuPK:3266877~pagePK:51236175~piPK:437394~theSitePK:73154,00.html IDA at work: Rebuilding Mozambique’s Water Supply Infrastructure] ]

The Water Services and Institutional Support Project, a US$ 30m project approved in 2007, aims to increase water service coverage in the cities of Beira, Nampula, Quelimane, and Pemba under the delegated management framework and to establish an institutional and regulatory framework for water supply in smaller cities and towns. [ [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P104566 Water Services and Institutional Support Project] ]

Mozambique Water Private Sector Contracts project is a US$ 6m Output based aid project approved in 2007 that aims to provide subsidized water connections for domestic consumers in Maputo, Beira, Nampula, Quelimane, and Pemba. This project is implemented by FIPAG and expects to subsidize the construction of more than 30,000 shared yard taps which would impact approximately 468,000 people. [ [http://www.gpoba.org/activities/details.asp?id=62 GPOBA: Mozambique Water Private Sector Contracts – OBA for coverage expansion] ]

Switzerland

Since 1979, Switzerland is backing governmental efforts in the fields of rural water supply in the Northern provinces, training (training institutions, scholarships, human resource department) and institutional support to central and provincial authorities.

The Swiss program was revised in 2003 to focus more on promoting, documenting and disseminating innovative experiences and bring them to the national debate in partnership with other donors such as the World Bank and the European Union. The main focus will remain the rural population of Northern Mozambique. Swiss aid is partially channeled through the NGOs such as Helvetas in Cabo Delgado Province, CARE in Nampula and Cabo Delgado provinces, and WaterAid in Niassa and Zambezia provinces. The Swiss aid budget for water and sanitation in Mozambique is about US$3m per year. [ [http://www.sdc.admin.ch/en/Dossiers/Mozambique/Water_and_sanitation SDC] ]

Other donors

* The African Development Bank (AfDB) provided US$ 19.6m of co-financing for the second national water supply project.
* The Nordic Development Fund, which does not exist any more, provided co-financing for the first World Bank project.
* The Netherlands provide US$ 10m of co-financing for the second national water supply project.
* Canadian CIDA is involved primarily in rural water supply and sanitation. (WB ICR)
* Swedish SIDA is involved primarily in water supply in the Pungwe river basin. (WB ICR)

External links

* [http://www.fipag.co.mz/ FIPAG]
* [http://www.cra.org.mz/?__target__=home CRA]

References


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