Mozambique Maputo Overcoming obstacles serving the urban poor World Water Forum 5

1. Mozambique Maputo Overcoming obstacles serving the urban poor World Water Forum 5 Istanbul 16-22 March, 2009 Topic 5.3.1

2. Mozambique Population: 20,530,714 habitants FIPAG : Assets Holding and Investment Fund Created in 1998 Responsible for 14 Urban Utilities managed by two International Operators

3. Problems serving the urban poor • Informal settlement: • hard to build basic infra-structure • Drainage and sanitation problems: • protection of the network needed • Poor accessibility: • poor supervision and inefficient maintenance • Prone to illegal connections • Lack of addressing system: • Inadequate reading and invoicing Consumers profile: • Low capacity to pay particularly the connection cost • Low consumption (around 5 m3/month) and constraints to pay consumption on a monthly basis

4. Maputo Total population: 1.8 Milion Peri-urban area Expansion started in the year 2000 Population: 300.000 Growth rate: 6% to 10% Not covered by the conventional network Cement city Population: 800.000 Growth rate: 1% Conventional Network covered area Peri-urban area Expansion started in the 80´s Population: 700.000 Growth rate: 2% Partially covered by the conventional network

5. Response to water demand SMALL SCALE INDEPENDENT PROVIDERS- SSIP • Serves the two expansion areas with own networks (purely private investment) • Informal 427 Small Systems 38000 PC and 300 Standpipes 350.000 served-20% coverage • Typical infrastructures: Boreholes, water tower and HDPE tanks and network • Primarily constructed to solve individual needs • Turned into a business due to demand

6. Response to water demand • Water Resale in yards: • Developed mainly in areas served by conventional network; • Informal activity; • Each yard tap serves around 50 households; • Charge per bucket (average 20 l capacity); • Inadequate with progressive tariffs. Potential source of non-revenue water! 6

7. The way forward 1.Formalise these types of service delivery The on going SSIP´s licensing process 2. Include these types of service delivery in planning, budgeting and negotiations with the Funding Agencies Component 3 - Maputo Water Supply Project, funded by EIB, EU, AFD,ORET, Mozambican Government 3.Provide support to these providers to develop their activities OBA Subsidy for poorest quintiles served by SSIP´s small systems Technical assistance and study tours 4. Develop partnerships with other actors to complement Government funding Water Aid and WSUP funding to extend secondary and tertiary network and capacity building

8. Partnership 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 Main Activities Coordination meeting FIPAG-WSUP in London • Baseline surveys for water supply • Extension of secondary and tertiary networks • Construction of household and yard connections • Trainingandbuilding capacity ofa small private operator in a neighborhood within the leased area Baseline survey- Questionnaire session

9. CHALLENGES • ensuring no backfire • Public interest protected • Engagement of the providers with long term perspective • Engagement of other partners: local institutions and funding agencies • Appropriate regulation and supervision • Long term sustainability REQUIRED!