| Mozambique: Water and Sanitation | ||
|---|---|---|
| Data | ||
| Access to an improved water source | 47% (2008) [1] | |
| Access to improved sanitation | 17% (2008) [1] | |
| Continuity of supply (%) | n/a | |
| Average urban water use (l/c/d) | n/a | |
| Average water tariff (US$/m3) | n/a | |
| Share of household metering | Low | |
| Annual investment in WSS | n/a | |
| Share of self-financing by utilities | Low | |
| Share of tax-financing | Low | |
| Share of external financing | 85% (2006–2008) | |
| Institutions | ||
| Decentralization to municipalities | Yes | |
| National water and sanitation company | Tow asset-holding companies: FIPAG for water in large cities; AIAS for sanitaiton in large cities and water supply in small towns | |
| Water and sanitation regulator | CRA | |
| Responsibility for policy setting | Ministry of Public Works and Housing | |
| Sector law | No | |
| Number of urban service providers | n/a | |
| Number of rural service providers | n/a | |
Water supply and sanitation in Mozambique is characterized by low levels of access to an improved water source (estimated to be 47% in 2008), low levels of access to adequate sanitation (estimated to be 17% in 2008) and mostly poor service quality. However, Mozambique has also introduced an innovative public-private partnership for urban water supply that has operated to the apparent satisfaction of the government since 1999. Under this partnership assets in 13 cities are owned by the government through an asset-holding company. Operations in nine cities, including the largest ones, are delegated to a private company, Aguas de Mozambique, which is jointly owned by a public Portuguese firm and local investors. In the remaining four cities, municipal departments operate the systems. While the strategy for urban water supply in Mozambqique has been well defined since the mid-1990s, a strategy for rural water supply and sanitation has only been defined in 2008.
The Mozambique Millennium Development Goal status report for water and sanitation notes that the sector as a whole still strongly depends on donor financing and that donors finance about 85% of all investments. The main donors in the water sector are the World Bank, the African Development Bank, Canada, the Netherlands, Sweden, Switzerland and the United States.
Contents |
Only about 47% of the Mozambican population has access to an improved water source, and only 17% has access to adequate sanitation.[1] 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 Supply and Sanitation estimates access to an improved source of water supply at 77% in urban areas and 29% in rural areas.[1] 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 numbers for rural access are derived from the number of boreholes and an estimated average number of households using a borehole.[2]
| Urban (37% of the population) |
Rural (63% of the population) |
Total | ||
|---|---|---|---|---|
| Water | Broad definition | 77% | 29% | 47% |
| House connections | 18% | 2% | 8% | |
| Sanitation | Broad definition | 38% | 4% | 17% |
| Sewerage | 4% | 0% | 1% |
Source: Joint Monitoring Program for Water Supply and Sanitation of WHO and UNICEF [1]
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%.[2] However, according to a MDG status report it means increasing access to 70% in both urban and rural areas.[3]
There are few published reliable data on water and sanitation service quality in Mozambique. Many water systems provide water intermittently. However, four cities - Beira, Pemba, Quelimane and Nampula – have achieved continuous or almost continuous water supply as a result of private sector participation, increasing the hours of water supply per day from 9 hours (Beira and Quelimane) and 17 hours (Nampula and Pemba) in 2002 to 22–24 hours in 2007. Water supply in Maputo remains intermittent, increasing only slightly from 12 to 14 hours.[4]
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 called Aguas de Moçambique (AdeM), which was led by the French firm SAUR (35%) and included Aguas de Portugal (32%). For Maputo and Matola the contract consisted of a 15-year lease and for the other cities of a 5-year management contract.[5] AdEM also included a 30%-shareholding by a Mozambiquan holding company called Mazi of Mozambique consisting of six local shareholders. AdeM’s financial bid was substantially lower than that of the closest competitor. According to a World Bank study, it ultimately proved to be unrealistically low. By 2001 AdeM had encountered serious financial difficulties, exacerbated by flood damages in 2000. When an independent review denied tariff increases to compensate for the flood damages, SAUR withdrew from the contract in October 2001. In December it sold its shares for a nominal amount to Águas de Portugal.[6] Subsequently FIPAG and AdeM renegotiated the contracts, obtaining higher fees and improvements in the specification of service obligations and procedures.[4] In 1999 the World Bank approved the Second National Water Development Project [7] In 2004 the five-year management contract for the smaller cities has been extended by three years. The contract was subsequently extended by another year and terminated in March 2008. 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".[8]
Also in 2004, FIPAG entered into a three-year contract with the Dutch company Vitens under which the latter provided management support services and training in four small southern cities – Xai-Xai, Chokwe, Inhambane and Maxixe. Another contract between FIPAG and Vitens was signed in 2006 for services in five additional cities in central Mozambique – Tete, Moatize, Chimoio, Manica and Gondola. These contracts were considered transitional arrangements to prepare the services for more conventional delegated management. While Vitens’ obligations under the first contract were similar to those in AdeM’s Management Contract, its services were provided free of charge and its staffing arrangements were quite different. While AdEM management changed constantly and its expatriate-only team was based in Maputo only, according to a World Bank study, Vitens used an innovative staffing model with only the team leader residing in Mozambique, assisted by short-term experts from the Netherlands. The Dutch team developed a close working relationship with Mozambican team members, thus strengthening local capacity.[4]
Through the Decentralization Law of 1997, which created municipal governments with elected leaders, and the Law of Local State Organs of 2003 the 129 district and 11 provincial governments of Mozambique received more responsibilities in various fields including water supply. Decisions about investments are supposed to be taken at the local level. However, the district and provincial governments often still lack the financial and human resources to carry out their responsibilities. In 2007 a National Rural Water and Sanitation Strategic Plan has been adopted, which led to the decision to create Provincial Water and Sanitation Services (SPAS) in 2009 and the establishment of a common fund for rural water supply and sanitation (PRONASAR) in 2010.[9] The 129 districts of Mozambique are the focal point for planning and implementing the program. In 2010/11 a baseline water supply and sanitation survey is being carried out covering 2,500 households in 75 districts.[10]
The National Directorate of Water (DNA) 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.[11] 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 companies.[3] In 2009 a second asset holding company - the Administração de Infraestruturas de Abastecimento de Água e Saneamento (AIAS) - has been created for urban sanitation and water supply in secondary towns.[12]
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.”[13]
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 departments operate and maintain the systems. De facto, municipal governments play a very limited role in water supply and sanitation despite their legal responsibilities. Their revenue is so low that they depend on the central government for funding.[14]
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.[15] CRA introduced real average tariff increases of 5 to 10 percent per year in the service areas of the private company AdeM over the period 2002 2007 with the objective of achieving full cost recovery. Due to the contract structure, these increases benefited the public asset holding company FIPAG, not the private operator. FIPAG’s financial performance improved steadily as a result of the tariff increases.[4]
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”.[11] 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.[3] In rural areas revenues are by far insufficient to recover operation and maintenance costs.[3]
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$67M annually that have been “planned”.[3] According to the World Bank, in 2007 Mozambique’s delegated private sector management approach has attracted about US$ 350 million to urban water over the last six years.[11]
About 85 percent of investments in water supply were financed by aid in 2006–08. External financing has increased by 150 percent as compared to 2003–05, from US$46 million to US$116 million. Funding channeled through the national budget has been disbursed at a rate of 82 percent, while donor-managed projects disbursed only at an average rate of 58 percent.[16]
A 2009 Water Sector Public Expenditure Review by the World Bank found that there are numerous planning documents, but still no comprehensive planning. Donors are not well coordinated and the Ministry of Finance changes budget allocations in mid-year. While there are many reports on outputs and on disbursements, but the two are not linked to each other so that it is impossible to estimate value for money.[17]
Because of the poor condition of the networks, illegal connections and vandalism of meters, unaccounted-for water remained over 50 percent in most areas in 2007. Collection ratios ranged from 84% to 97%. According to a World Bank study, staff productivity in Maputo (5.4 employees per 1000 connections) compared favorably with large water companies in the Africa region. Staffing ratios were still high in the other areas, but were improving as the number of connections increased.[4] While these figures are still far from good practice, they are an improvement over the situation in 1998 when unaccounted-for water was estimated to be more than 60%, collection efficiency ranged from 40% in some towns to 70% in Maputo, and the number of staff per 1000 connections ranged from 10 in Maputo to up to 34 in some towns.[18]
The African Development Bank (AfDB) supported the water and sanitation sector with four investments projects since 1981. It provides US$19.6M of co-financing for the second national water supply project. In April 2009 it approved the Niassa Provincial Towns Water and Sanitation Project in Cuamba and Lichinga towns, supported by a US$27 million loan.[19]
Since 2000 Canadian CIDA supports the Inhambane Rural Water Development Program (IRWDP).[20]
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 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.[21]
In 2007 the Millennium Challenge Corporation approved a US$203.6 mn Water Supply and Sanitation Project for six cities, two mid-sized towns and 600 villages.[22]
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.[11]
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.[23]
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.[24]
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