FEASIBILITY STUDIES FOR BUILDING CLIMATE RESILIENCE OF LIMPOPO BASIN


Overview

  • Reference: P-MZ-EAZ-002
  • Approval date: 03/10/2014
  • Start date: 12/10/2015
  • Appraisal Date: 11/10/2013
  • Status: OngoingOnGo
  • Implementing Agency: --
  • Location: Limpopo basin

Description

The idea of developing a multi-purpose dam emerged in the seventies in Mozambique, with the ambition to control floods, provide water for irrigation, and produce hydropower (Mapai Dam). However, initial studies (1970-1980) are very preliminary and outdated.

The overall goal of the feasibility studies project is increased investments to strengthen climate change resilience for enhanced livelihood and reduced poverty and achieve climate change mitigation through alternative energy production in Mozambique. The main stated outcomes are:

(i) Mapai dam or equivalent optional solutions validated by stakeholders and GoM, as the preferred solution for building resilience to climate change including flood attenuation, dry season water availability; enhanced livelihood and food security, reduced poverty, and reduced greenhouse gas emissions; and

(ii) Project financing and partnership arrangements for the construction project is structured, public funding committed, and Public Private Partnership (PPP) identified and established.

The project will follow a step-wise approach as illustrated in Annex 2 to ensure optimum use of the funding and human resources to establish the necessary knowledge and assessments (due diligence) to ensure informed decision making.

The first step will therefore be a pre-feasibility assessment to initially identify and address i.a.

(i) context and rationale;

(ii) hydrological and CC aspects;

(iii) geological and geotechnical conditions;

(iv) optional solutions;

(v) scope and preliminary lay-out;

(vi) preliminary economic and financial viability; (vii) environmental and social issues, (viii) risks. The pre-feasibility stage shall provide recommendations and framework conditions for informed decisions.

The second stage will include the feasibility studies based on the pre-feasibility decisions on the most relevant and appropriate option. This stage will comprise a feasibility level assessment of:

(i) technical, economic, and financial viability; and

(ii) social and environmental safeguarding and compensation accepted by stakeholders and approved by authorities;

(iii) irrigation development plan, including a strategy to control large estates development and avoid land grabbing;

(iv) Financing and partnership development strategy (including PPP).


Objectives

The proposed project aims at developing a multipurpose water storage capacity in the Limpopo basin (flood control, irrigation, hydropower, and secondary uses). It will be a significant long-term response to the hydrological and climate change induced challenges facing the Mozambican part of the Limpopo River.

The project is in line with i.a.

(i) The National Water Policy;

(ii) policies and strategies on irrigation and energy; and

(iii) Mozambique's Strategic Program for Climate Resilience (SPCR) and related Pilot Program (PPCR) and Programme of Action (NAPA). AfDB is involved in several projects on climate change resilience building in the country, such as the Baixo Limpopo Irrigation & Climate Resilience Project.


Rationale

The Government of Mozambique (GoM) has since long intended to construct a multi-purpose dam on the Limpopo River at Mapai in Gaza Province for flood control and increased dry season flow in the river. A high level political decision was made in 2013 to fast-track the planning of the Mapai dam to give momentum to partnership and investments to drive the construction of the dam. A request for funding of the necessary feasibility studies was submitted to AWF in June 2013 by the National Directorate of Investment and Cooperation under the Ministry of Planning and Development. In response, the Facility fielded together with AfDB fielded an appraisal mission to Mozambique in October 2013.

Part of the investment (most probably hydropower and irrigation) may be of some interest to the private sector, and the national policies are conducive to Public-Private-Partnerships.


Benefits

The proposed project will directly benefit a large portion of the riverine populations who lives in the flood and drought prone areas (at least 250,000). Due to increased food and energy security, the number indirect beneficiaries will be far higher.


Key contacts

VERDEIL Daniel - AWTF


Costs

Finance source Amount
AWFEUR 3,001,078
FAPAEUR 617,752
DeltaEUR 331,378
TotalEUR 3,950,208