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Mozambique Inaugurates Bank-financed Water Systems in Inhambane


The Mozambican government on December 4, 2010, inaugurated two water systems constructed under the Urban Water Supply, Sanitation and Institutional Support Project, approved in December 2002; and financed with an African Development Fund (ADF) loan and technical support grant amounting to USD 32.56 million.

The inauguration took place in Maxixe and Inhambane cities, in the Southern Province of Inhambane. The Bank was represented at the event by its Mozambique Field Office (MZFO) Resident Representative,  Alice Hamer. The high-profile event was presided over by the Mozambican Prime Minister, Aires Ali, and brought together several senior government officials, community leaders, non-governmental entities and media representatives.

The Urban Water Supply, Sanitation and Institutional Support Project is designed to improve access, quality, availability and sustainability of water supply and sanitation services in Chókwè, Inhambane, Maxixe and Xai-Xai. It also aims to improve the standard of living of the people; and strengthen  Mozambican government’s efforts to reform the water sector with a focus on support to private sector participation. Concretely, the project aims at increasing the coverage from 37% to 65% and reducing the occurrence of water born diseases by 25%.

Speaking at the event, Ms, Alice Hamer challenged all those involved in the project, particularly the implementing agencies and the direct and the indirect beneficiaries on the need to ensure the availability and sustainability of the new systems, through identification of strategies that guarantee the provision of the necessary energy for the functioning of the facilities.

For his Part, Prime Minister Ali pointed out that water was the government’s key priority, adding that the provision of quality services aims at improving the living conditions of the communities, through improvement of their health and hygiene habits. “We are all responsible for the protection and normal functioning of the water systems inaugurated today”, Mr. Ali emphasized.

Project summary
In 1997, the Mozambican government embarked upon a National Water Development Programme (NWDP). The Programme covers policy development, sector reform, institutional capacity building, and preparation for Private Sector Participation (PSP) in urban and rural water supply and sanitation, water resources management and human resources development.

In 1998, the government requested Technical Assistance Fun (TAF) financing for the Four District Centres Water Supply and Sanitation Study, for the towns of Chokwe, Inhambane, Maxixe and Xai-Xai. The objectives of the study were to identify appropriate ways and means to rehabilitate and extend the water supply, sanitation and solid waste disposal facilities for the population of the four towns. The proposed project is based upon the outcome and recommendations of the Four District Centres Water Supply and Sanitation Study.

Purpose of the Loan

The ADF loan of UA 19.06 million and TAF grant of UA 2.31 million, together amounting to 89% of the total project cost will finance 100% of foreign exchange and 52% of the local costs.

The project objective is to improve the access, quality and sustainability of water supply and sanitation services in Chokwe, Inhambane, Maxixe and Xai-Xai.

Project Outputs

The project outputs will be:

  • Water supply and sanitation systems rehabilitated and extended,
  • Water supply and sanitation services extended to the low-income urban areas,
  • Hygiene and environmental sanitation promotion, training and monitoring program, sanitation and solid waste facilities for schools and heath institutions,
  • Increased knowledge and prevention of HIV/AIDS and malaria,
  • Strengthened institutional framework for sector management,
  • Improved financial sustainability of project and sector institutions and
  • Private Sector Participation in water supply services in the four project towns.

Project Costs

The total project cost is estimated at UA 23.97 million, out of which foreign exchange and local costs contributions are about 77% and 23% respectively.
Sources of Finances

The project will be financed by ADF, TAF and GOM. The ADF and TAF contributions will be UA 19.06 million and UA 2.31 million respectively. GOM contribution will be UA 2.60 million, which represents 11% of total project costs. 

Project Implementation

The project is scheduled to be completed in 4 years. The Executing Agencies are the Ministry of Public Works and Housing, Water Supply Investment and Asset Holding Fund (FIPAG) and Sanitation Department (DES/DNA).

AfDB Conclusions

The water supply and sanitation situation in Chokwe, Xai Xai, Inhambane and Maxixe calls for improvement to improve the standard of living of the people. The proposed project is technically feasible, financially and economically viable with important socio-economic benefits, and it is environmentally sustainable.

The project will strengthen the GOM efforts in reforming the sector, and in particular, will support Private Sector Participation in the water supply and sanitation sector.

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