Contacts In Washington: John Donaldson (202) 473 1367 jdonaldson@worldbank.org In Mozambique: Rafael Saúte (258-21) 482324 rsaute@worldbank.org WASHINGTON, September 11, 2007 – The World Bank Board of Executive Directors approved today a US$15 million credit* from the International Development Association (IDA) to Mozambique in support of the Water Services and Institutional Support Project. The development objectives of the project are to increase water service coverage in the cities of Beira, Quelimane, Nampula and Pemba, and to establish an institutional and regulatory framework for water management in smaller cities and towns. These development objectives are also supported by a US$15 million grant from the Africa Catalytic Growth Fund (ACGF*), which was approved on August 8, 2007. This project builds on accumulated World Bank experience in the sector, with special mention to the ongoing National Water Development Project II (NWDP II) and its supplemental credit, totaling US $90 million, whose focus are to build physical and institutional infrastructures aimed at improving the management and production capacity of water in the country. “Access to water significantly affects the overall well-being of people through its impact on health, education, gender equality, and productivity. This project will particularly extend networks in peri-urban areas where the bulk of low income population lives and where the risks of water borne diseases are much higher,” said Jane Walker, the World Bank Task Team Leader for the project. The Water Services and Institutional Support Project comprises three components, namely: Component 1: Investment and continuing support in the cities of Beira, Quelimane, Nampula and Cabo-Delgado. Under this component, 370 km2 of network, resulting in 10,000 new connections, will be built. This investment will take advantage of those investments made through NWDP II, and will be managed by the Water Sector Assets Investment Fund (FIPAG). Component 2: Capacity Building, Institutional and Operational Support to National Directorate of Water (DNA). This component will support DNA with (1) the creation of an Asset Management Unit (AMU), whose role will be to manage, plan and oversee the execution of investments, and engage third party operators in smaller cities and towns. The AMU will be conceived to be closely linked with investment funding under the proposed USA’s Millennium Challenge Corporation project and will be piloted in four northern provinces, including Zambezia, Cabo Delgado, Niassa and Nampula; and (2), will provide support for the implementation of Sector Policy through support in the preparation of a rural sub-Sector Wide Approach (SWAP) mechanism, which will (a) provide resources to complement a donor-wide initiative led by DNA to develop a strategy to scale up the demand driven community participatory model for village piped systems and non-piped systems; and , (b) complement, as necessary, measures already underway to mitigate HIV/AIDS among DNA workers. This component will be coordinated by DNA. Component 3: Capacity, Institutional and Operational Support to the Water Regulatory Board (CRA). This component’s objectives are to (a) provide resources to complement CRA’s expanding work on its efforts to extend the regulatory frameworks and oversight to smaller cities and towns; and, (b) provide continuing operational support, capacity building, and technical assistance to CRA. This component is managed by CRA. *The ACGF is a multi-donor trust fund established by the World Bank in February, 2006, and aimed at complementing existing World Bank’s International Development Association (IDA) development programs by providing rapid financing for country programs to be selected according to specific criteria to address specific constraints holding back their potential for shared growth. The ACGF also stems from the commitment by international donors to increase development assistance to Africa.
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