MozambiqueMozambique

Population:

20,530,714 habitants

FIPAG :

Assets Holding and Investment Fund

Created in 1998

Responsible for 14 Urban Utilities managed by two International Operators

Problems serving the urban poorProblems serving the urban poor

Low consumption (around 5 m3/month) and Low consumption (around 5 m3/month) and constraints to pay consumption on a monthly basisconstraints to pay consumption on a monthly basis

Poor accessibility:Poor accessibility:poor supervision and inefficient poor supervision and inefficient maintenancemaintenanceProne to illegal connectionsProne to illegal connections

Lack of addressing system:Lack of addressing system: Inadequate reading and invoicingInadequate reading and invoicing

Informal settlement: Informal settlement: hard to build basic infra-structurehard to build basic infra-structure

Drainage and sanitation problemsDrainage and sanitation problems:: protection of the network neededprotection of the network needed

Low capacity to pay particularly the connection costLow capacity to pay particularly the connection cost

Consumers profile:Consumers profile:

MaputoMaputo

Peri-urban areaPeri-urban area

Expansion started in the Expansion started in the year 2000year 2000

Population: 300.000Population: 300.000

Growth rate: 6% to 10%Growth rate: 6% to 10%

Not covered by the Not covered by the conventional networkconventional network

Peri-urban areaPeri-urban area

Expansion started in the 80´sExpansion started in the 80´s

Population: 700.000Population: 700.000

Growth rate: 2%Growth rate: 2%

Partially covered by the Partially covered by the conventional networkconventional network

Cement cityCement city

Population: 800.000Population: 800.000

Growth rate: 1%Growth rate: 1%

Conventional Network Conventional Network covered areacovered area

Total population: 1.8 MilionTotal population: 1.8 Milion

Response to water demandResponse to water demand

SMALL SCALE INDEPENDENT PROVIDERS- SMALL SCALE INDEPENDENT PROVIDERS- SSIPSSIP•Serves the two expansion areas with own Serves the two expansion areas with own networks (purely private investment)networks (purely private investment)•InformalInformal

•Typical infrastructures: Boreholes, water tower and HDPE Typical infrastructures: Boreholes, water tower and HDPE tanks and networktanks and network•Primarily constructed to solve individual needsPrimarily constructed to solve individual needs•Turned into a business due to demandTurned into a business due to demand

427 Small Systems427 Small Systems38000 PC and 300 Standpipes38000 PC and 300 Standpipes350.000 served-20% coverage350.000 served-20% coverage

6

Response to water demandResponse to water demand

Water Resale in yards:Water Resale in yards:

Developed mainly in areas Developed mainly in areas served by conventional served by conventional network; network;

Informal activity;Informal activity; Each yard tap serves around 50 Each yard tap serves around 50

households;households; Charge per bucket (average 20 l Charge per bucket (average 20 l

capacity);capacity); Inadequate with progressive Inadequate with progressive

tariffs.tariffs.

Potential source of non-revenue water!Potential source of non-revenue water!

The way forwardThe way forward

1.Formalise these types of service delivery1.Formalise these types of service deliveryThe on going SSIP´s licensing processThe on going SSIP´s licensing process

2. Include these types of service delivery in planning, budgeting and 2. Include these types of service delivery in planning, budgeting and negotiations with the Funding Agenciesnegotiations with the Funding AgenciesComponent 3 - Maputo Water Supply Project, funded by EIB, EU, AFD,ORET, Component 3 - Maputo Water Supply Project, funded by EIB, EU, AFD,ORET, Mozambican GovernmentMozambican Government

3.Provide support to these providers to develop their activities3.Provide support to these providers to develop their activitiesOBA Subsidy for poorest quintiles served by SSIP´s small systemsOBA Subsidy for poorest quintiles served by SSIP´s small systemsTechnical assistance and study toursTechnical assistance and study tours

4. Develop partnerships with other actors to complement Government 4. Develop partnerships with other actors to complement Government funding funding Water Aid and WSUP funding to extend secondary and tertiary network and Water Aid and WSUP funding to extend secondary and tertiary network and capacity building capacity building

Partnership with WSUPPartnership with WSUP

• Develop and consolidate partnerships with the main stakeholders particularly FIPAG and the formal operator (AdeM)

• Activities in areas with some reticulation but in poor working condition and badly structured

•Total beneficiaries 162,000 people

•Extension of secondary and tertiary networks

•Construction of household and yard connections

•Baseline surveys for water supply

Coordination meeting FIPAG-WSUP in London

Baseline survey- Questionnaire session

Main Activities

•Training and building capacity of a small private operator in a neighborhood within the leased area

CHALLENGESCHALLENGES

ENSURING NO BACKFIREENSURING NO BACKFIREPublic interest protectedPublic interest protected

Engagement of the providers with long term perspectiveEngagement of the providers with long term perspective Engagement of other partners: local institutions and Engagement of other partners: local institutions and

funding agenciesfunding agencies Appropriate regulation and supervisionAppropriate regulation and supervision

LONG TERM SUSTAINABILITY REQUIRED!LONG TERM SUSTAINABILITY REQUIRED!