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MOZAMBIQUE

NIASSA PROVINCIAL TOWNS WATER SUPPLY AND SANITATION PROJECT

PROJECT COMPLETION REPORT

(PCR)

RDGS DEPARTMENT

October 2017

AFRICAN DEVELOPMENT FUND

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1 Mozambique: Niassa Provincial Towns WSS PCR

I BASIC DATA

A Report data

Report date Date of report: 12th May 2016

Mission date (if field mission) From: 21st April, 2016 To: 30th April, 2016

B Responsible Bank staff

Positions At approval At completion

Regional Director Frank BLACK Kennedy MBEKEANI (Acting)

Country Manager Alice HAMMER Joseph RIBEIRO

Sector Director A RAKOTOBE Mohamed EL AZIZI

Sector Manager Sering JALLOW Osward M. CHANDA

Task Manager Boniface ALEOBUA Boniface ALEOBUA

Alternate Task Manager Mecuria ASSEFAW

PCR Team Leader Boniface ALEOBUA

PCR Team Members Yolanda ARCELINA

Alex GOMANI

C Project data

Project name: NIASSA PROVINCIAL TOWNS WATER SUPPLY AND SANITATION PROJECT

Instrument number(s): ADF 2100150019951

Project type: Infrastructure Sector: Water and Sanitation

Country: Mozambique Environmental categorization (1-3): 2

Processing milestones – Bank approved

financing only (add/delete rows depending

on the number of financing sources)

Key Events (Bank approved financing only) Disbursement and closing dates (Bank

approved financing only)

Financing source/ instrument1

ADF GRANT

Financing source/ instrument1: Financing source/ instrument1:

Date approved: 29/04/2009 Cancelled amounts: NA Original disbursement deadline:

31st December 2013

Date signed: 10/09/2009 Supplementary financing: NA Original closing date: 31st December

2013

Date of entry into force:

28th January 2010

Restructuring (specify date & amount involved): Revised (if applicable) disbursement

deadline: Extension 1: 30th June 2015

Extension 2: 30th December 2016

Date effective for 1st disbursement:

22nd Oct 2010

Extensions (specify dates):

Extension 1: 10 October 2013

Extension 2: 21 April 2015

Revised (if applicable) closing date:

Extension 1: 30th June 2015

Extension 2: 30th March 2016

PROJECT COMPLETION REPORT FOR PUBLIC SECTOR OPERATIONS (PCR)

AFRICAN DEVELOPMENT

BANK GROUP


Date of actual 1st disbursement:

21st January 2011

Financing source/instrument (add/delete rows depending on the

number of financing sources):

Disbursed amount

(amount, UA):

Percentage disbursed

(%):

Undisbursed

amount (UA):

Percentage

undisbursed (%):

Financing source/ instrument 1:

ADF Grant (UA 18,000,000) 17,516,563.951 97.31 % 483,436.05 2.69%

Government: (UA 2,000,000) 2,301,192.00 115.00% 0 0%

TOTAL (UA 20,000,000) 19,817,755.95 106.00% 2,387,700.32 11.94%

Co-financiers and other external partners:

D Management review and comments

Report reviewed by Name Date reviewed Comments

Country Manager Joseph RIBEIRO

Sector Manager Osward CHANDA

Regional Director (as chair of Country

Team) Kennedy MBEKEANI

Sector Director Mohamed EL AZIZI

I

I

Project performance assessment

A Relevance

1. Relevance of project development objective

Rating* Narrative assessment (max 250 words)

4 The project was aligned with Mozambique’s plans for poverty reduction and economic growth namely, the Five Year Program

(2005-2009) and the second generation of Action Plan for the Reduction of Absolute Poverty, (PARPA II), for the period

2006-2009. The PARPA II, a successor to PARPA I, had three pillars: governance, human capital, and economic development.

Pillar 3 – Economic Development is centered on the basic conditions for pursuing productive activity including, inter alia:

increased access to water and sanitation; and (iv) improve private sector business environment.

The project was also in line with one of the most significant pieces of legislation in the Mozambican water sector which is the

National Water Policy (PNA, 1995). The policy was developed as a means to shift government responsibility from direct

implementation to a more facilitative role based on a delegated management framework in the form of a Public-Private

Partnership (PPP) whereby assets are owned by the government and operations are managed by the private sector under a

concession, lease or management contract. This resulted in FIPAG assuming the role of managing Water Supply Investment

and Assets in the urban water sector, and through which the operation of water services are delegated to private lessees. The

water sector is regulated by CRA under the same delegated framework.

The Project was aimed at making a significant contribution to human development, by boosting the number of people in the

two towns with access to safe drinking water and sanitation, and in turn contribute to the achievement of Mozambique's

Millennium Development Goals (MDG) on water, health and poverty eradication, which are central to the country's Poverty

Reduction Strategy. This included: Reduced proportion of population below the basic needs poverty line from 54% in 2003

to 40% in 2025. Reduced child U5 mortality from 206/1000 in 2003 to 70/1000 in 2025.

The project was also well aligned to the 2006-2009 Bank’s Country Strategy Paper’s second pillar – Infrastructure which links

directly to part of PARPA Pillar 3 - Economic Development. Additionally, the Bank assumed a leading role among the donor

community in water infrastructure related initiatives (e.g. African Water Facility, Rural Water Supply and Sanitation Initiative

and NEPAD), where it is perceived to have comparative advantages. Further, the Bank chaired the donor partners group for

the water sector for the period 2014-2016. As such the project did not violate the integrity of its contextual underpinnings.

* For all ratings in the PCR use the following scale: 4 (Highly satisfactory), 3 (Satisfactory), 2 (Unsatisfactory), 1 (Highly unsatisfactory)

1 Amount includes pending disbursement applications comprising 50% retention money, and final audit.


2. Relevance of project design

Rating

* Narrative assessment (max 250 words)

3 The Project was originally conceived as part of the investments necessary for the attainment of the water sector MDGs in

Mozambique, and effected through the funding of feasibility studies for the four towns of Lichinga, Cuamba, Angoche and

Nacala as part of the completed Bank financed Integrated Rural Water Supply and Sanitation Project for Niassa and Nampula

Provinces. The studies were intended as long-term (20 year) strategic development programs. Due to investment resource

constraints, neither detailed designs nor tender documents were completed. Using a participatory approach which involved

Officials of the Government of Mozambique, Ministry of Public Works and Housing, Niassa provincial administration, and

several other relevant ministries, the project was scaled back to investments in Lichinga and Cuamba only, and the completed

feasibility studies for the other 2 towns handed to the other cooperating partners such as the Millennium Challenge Corporation

(MCC), EU, AFD and World Bank, among several other Development Partners in Mozambique, who were consulted during

the preparation and appraisal of the project. During the feasibility study, stakeholders (Municipal and community leaders,

potential consumers, women and men), participated through individual interviews, semi-structured interviews, and focus group

discussions which concentrated on the perceived problems, project objectives, the expected impact and benefits. In addition the

project made good use of the lessons learnt from the Bank supported urban water supply (The Maputo Water Supply

Rehabilitation Project) and the Integrated Water Supply and Sanitation Project for Niassa and Nampula Provinces by in the

design (consultation of stakeholders) and implementation (use of GoM structures to enhance ownership) of the project..

The focus of the project on improving the access, quality, availability and sustainability of water supply and sanitation services

in Cuamba and Lichinga Towns in Niassa Province was relevant. It sought to (a) Rehabilitate and expand the water supply and

sanitation systems in the towns of Cuamba and Lichinga, (b) Rehabilitate and construct on-site Sanitation systems for schools

and health centers, and support the solid waste management of the municipalities in Cuamba and Lichinga, (c) Mobilize the

communities on hygiene education and environmental awareness creation, and (d) Support CRA to develop customers’ relations

and M&E system in Cuamba and Lichinga.

The participatory approach adopted (through effective involvement of communities and municipal authorities), in the design

and implementation of the project largely enhanced their sense of ownership and thereby guaranteeing sustainability, especially

of the water structures. However, it would appear that the funding approach for the sanitation component during implementation

did not have the support of the municipal authorities, thereby potentially compromising project sustainability due largely to high

turnover of staff at both Municipalities.

3. Lessons learned related to relevance

Key issues (max 5, add rows as needed)

Lessons learned Target

audience

1. Ensuring upstream

readiness

1. The Bank’s initiative of funding the feasibility studies in the course of implementing a

precursor project, ensured that some of the necessary planning and implementation readiness was

attained. However the absence of detailed designs, meant that a re-scoping became necessary due

to priced bids exceeding the estimated costs for refurbishing the water supply infrastructure for

both towns. Future projects should either be implemented based on the availability of detailed

designs to enable better estimation of costs.

GoM and

the Bank

2. Ensure

decentralization of

implementation

functions to levels

where these are best

suited.

The DNA’s partial devolution of project decision making and management of the Sanitation

component to the Municipalities, resulted in reduced commitment and lack of prioritization in the

management and effective maintenance of project assets by the Municipalities.

The Bank,

GoM


3. Project design:

Where possible, ensure

that detailed designs for

the Infrastructure

elements are available

at approval.

The planned rehabilitation and expansion of water supply infrastructure in Lichinga town, was

condensed to only emergency rehabilitation activities. The project costs estimates turned out to

be inadequate for the complete refurbishing of the water supply infrastructure in both Lichinga

and Cuamba towns, after the detailed design and bidding process were completed. . The

Sanitation components for both towns were implemented as planned. Additional resources could

not be mobilized during the particular ADF Financing Cycle, due to full commitment of the

available resources for Mozambique. One big lesson is to ensure the completion of the detailed

designs for the Infrastructure component, which has now become adopted in the new Bank

approved PD 02/2015 which now requires that the project’s detailed designs are available by the

time the project is approved.

The Bank,

and GoM

B Effectiveness

1. Progress towards the project’s development objective (project purpose)

Comments

Provide a brief description of the Project (components) and the context in which it was designed and implemented. State the project

development objective (usually the project purpose as set out in the RLF) and assess progress. Unanticipated outcomes should also be

accounted for, as well as specific reference of gender equality in the project. The consistency of the assumptions that link the different

levels of the results chain in the RLF should also be considered. Indicative max length: 400 words.

Bank’s financing supported the two towns of Cuamba and Lichinga in Niassa provinces as part of the country’s Five Year Program (2005-

2009) and the second generation of Action Plan for the Reduction of Absolute Poverty, (PARPA II), for the period 2006-2009.

Project Objective: The objective of the project is to improve the access, quality, availability and sustainability of water supply and

sanitation services in Cuamba and Lichinga Towns in Niassa Province by: (a) Rehabilitating and expanding the water supply systems in

the towns of Cuamba and Lichinga; (b) Rehabilitating and constructing on-site sanitation systems for schools and health centres, and

supporting the solid waste management of the municipalities in Cuamba and Lichinga; (c) Mobilizing the communities on hygiene

education and environmental awareness creation, and (d) Supporting Conselho de Regulação do Abastecimento de Águas (CRA) to

develop customers’ relations and M&E system in Cuamba and Lichinga

Components: The components of the project are as follows:

(a) Institutional Development Support: The component was intended to enhance the commercial, financial and technical capacity of

Cuamba and Lichinga water companies, strengthen the Municipal Sanitation Departments in Cuamba and Lichinga, implement

unaccounted for water programs and carry out valuation of fixed assets. It was also intended to conduct tariff studies, provide support for

the regulator (CRA) with main focus on consumers’ relation in general and women in particular, and establishing an M&E system, procure

equipment and transport, and facilitates twinning arrangements for water companies. Technicians have been recruited to strength the

capabilities of the Sanitation Departments of the Municipalities, CRA has established the M&E Systems for consumers Relations and is

operational, offices in the two municipalities have been rehabilitated and equipped, vehicles and motorcycles have been purchased and

delivered to the Municipalities and FIPAG Offices, and garbage trucks and tractors including facilities to support the solid waste

management responsibility of the Sanitation Departments of the Municipalities, have been purchased and delivered. Further CRA set up

liaison offices to interact and accept consumer complaints and feedbacks, and approved water tariff increases from 16.68 MZM (2012) to

20.03 MZM (2015).

(b) Cuamba and Lichinga Water Supply Rehabilitation and Extension: This component involved the following: (i) carrying out detailed

designs, preparation of tender documents preparation and supervision; (ii) works on Lichinga water supply rehabilitation and extension,

including water laboratory facilities; and (iii) works on Cuamba water supply rehabilitation and extension, including water lab facilities.

After the project’s detailed design, it was established that the amount available to carry out major water supply rehabilitation and extension

works in both Lichinga and Cuamba was insufficient. A re-scoping exercise was carried out and agreement reached to prioritize Cuamba

owing to its very limited water supply coverage compared to Lichinga and the fact that the project would make a major impact in Cuamba

as against Lichinga, where the source water was only secure for the medium term and not the long term growth of the city. Instead, the

intervention in Lichinga were used to support only some emergency repair works in the water supply system.


Water Treatment Works, 2 reservoirs, elevator tower and pumping station have been completed. Transmission Main comprising of 29.500

meter of the DN500 Raw water pipeline and 11.000 meter of DN500 transmission main pipeline have been completed. It must be admitted

that due to the improved set up with the water utility FIPAG, the implementation has gone smoothly and very effectively.

(c) Sanitation Program: The aim of this component was to focus on rehabilitation and construction of sanitation facilities for schools,

health institutions and public places in both Lichinga and Cuamba. Further, it was also expected to support the establishment of municipal

sanitation demonstration centers coupled with hygiene, sanitation education and awareness campaigns, including awareness creation about

HIV/AIDS. The above were to be complemented by undertakings by the Sanitation Departments of the Municipalities, strengthened by

Consultants/NGOs financed by the project. Technology options were limited to on-site sanitation systems, mostly improved traditional

latrines with sanplats and VIP latrines or water-based toilets for selected or communal latrines for institutions and market centers. The

number of public latrines constructed reached close to intended number and household latrines were constructed by communities impacted

by the sanitation and hygiene sensitization activities.

(d) Project Management and Audit: This component entailed provision of office equipment such as computers and printers, technical

assistances, and other costs required for the program implementation. Regular annual audits were also supported under this component.

2. Outcome reporting

Outcome indicators

(as per RLF; add

more rows as needed)

Baseline

value

(Year)

(A)

Most

recent

value

(B)

End target (C)

(expected

value at

project

completion)

Progress

towards

target (% realized)

[(B-A)/(C-

A)]

Narrative assessment (indicative max length: 50 words per

outcome)

Core

Sector

Indicato

r (Yes/No)

Outcome 1: Water

supply improved and

coverage risen

12% (2009) 28% 70% 27.6% Lichinga water supply system, which was re-

scoped to receive only emergency

rehabilitation, did see major improvements in

the conveyancing of water supply from the

source to the water treatment works. As such,

28% or 63943 people now have access.

Cuamba water supply system was given a

major facelift, and is now capable of meeting

the needs of 72,000 people, once the existing

tertiary network is replaced and expanded

using additional Government resources.

Yes

Outcome 2:

Reduction in the time

taken to fetch water

1.5 hours 0.5 hours 0.5 hours 100% Time saving has improved because a lot of

people prefer house connections as soon as the

opportunity is presented to them, as opposed

to drawing water from stand pipes.

Yes

Outcome 3: Increase

in the average daily

rate of water supply

1.5 hours 14 hours 24 hours 58%

14 hours is a weighted average between

Lichinga which has a daily availability rate of

8 hours and Cuamba with 24 hours contingent

upon power availability.

Yes


Outcome 4:

Unaccounted for water 50% 31% 25% 76%

Although on the lower side FIPAG is

committed to reducing UFW by establishing

teams for the detection and repairs of leaks in

all networks, replacement of water meters at

inlet and outlet of the water treatment plant,

identification campaigns, leakage repair and

replacement of domestic water meters,

installation and monitoring of ZMC (Zoning

Metering Control) – flow metering zones and

valves for sectioning the network.

Yes

Outcome 5: Percent

of population

practicing good

health/hygiene/sanitati

on

25% n/a 50% n/a

No reliable information, due to non-routine

means of establishing the indicator, beyond

conducting Multiple Indicator Cluster

Surveys after 4-5 years apart.

Yes

Outcome 6:

Reduction in the

incidence of diarrhea

n/a n/a 30% n/a

In all interviews and consultations with the

communities the indications are that there has

been a considerable reduction in water borne

diseases. With specific regard to Diarrhoea,

the authorities of Lichinga reported cases

numbering 19,929 in 2011, 24,418 in 2012

and 15,638in 2013. In Cuamba the authorities

reported a total of 18,418 cases in 2015,

compared to 20,305 in 2014 and 24,414 in

2013. This demonstrates the impact of the

public toilets constructed in schools, health

care facilities and markets.

Yes

Outcome 7: Reduced

maternal mortality rate 408/1000 n/a 310/1000

There is no updated Demographic and Health

Survey post 2011. The indicator is expected to

improve, due to the wider reach of improved

water services, health and Hygiene awareness,

and other factors such as increasing access to

health care and to prenatal care.

No

Rating* (see IPR

methodology) Narrative assessment

3

The project has provided an opportunity for the Government of Mozambique to uplift the livelihoods of the people

of the Niassa Province especially the city of Cuamba which benefited from major rehabilitation and expansion of

its water supply infrastructure. The targets set in the appraisal report with regard to water supply were amended

slightly to focus expansion of the water supply infrastructure only on Cuamba. As at the time of the PCR mission

(30 days post completion) only 36, 400 people from Cuamba are benefiting from the water supply facilities and

coupled with 64, 000 from Lichinga the total people benefiting numbers 135,946 as opposed to a total of 212,790

at appraisal. The situation is expected to improve as there is gradual increase of house connection applications.

The system is capable of serving 72,000 people in Cuamba. That would put the total for both towns at 135946 or

a decent 63% realized towards the intended target at appraisal. Both the recipient and the Bank have to be

commended by agreeing to the realities that the funds allocated for both towns for water supply rehabilitation and

extension was not sufficient. Otherwise the resources would have been spread thinly over all the intended outputs

without having anything to show for it. That said, it is important that a successor investment be conceived in order

to realise the full potential of the investments made in both towns.

The mission noted that all relevant stakeholders’, in particular local governments and beneficiaries in general

expressed strong satisfaction with the results of the project. However, while the availability of water in terms of

quantity, number of hours , quality and also a reduction in the time taken for fetching water has improved in both

cities, the mission observed that the results of the sanitation component was not always satisfactory, in Lichinga

in particular. The results in terms of main health indicators are also mixed. The Province of Niassa (both Lichinga

and Cuamba inclusive) faced severe flooding events in 2015, which led to the outbreak of cholera and diarrhoea.


That notwithstanding, the trend of recorded diarrhoeal cases is on the decline. Statistics from the district hospital

in Cuamba shows declining cases of diarrhea from 24,414 cases in 2013; 20,305 cases in 2014; and 18,418 cases

in 2015. Similarly, the available statistics from Lichinga show a similar downward trend of 15,638 cases in 2013;

7,036 cases in 2014 and 4,617 cases in 2015. This downward trend notwithstanding, there is need to prioritize

sanitation at the municipal level for any meaningful reduction in the incidence of diarrhea.

There is also no available data to measure the impact of the awareness and sensitization campaigns at community

level. It is important to find a means of instituting the routine KAP survey (Knowledge, Attitudes and Practices)

in Government.

While training in water and sanitation management issues where provided, the institutionalization in both

municipalities is still low, and yet to be accorded the necessary priority by their own admission, due to staff

attrition, and inadequate municipality resources to meet the expected mandate

3. Output reporting

Output indicators (as

specified in the RLF;

add more rows as

needed)

Most recent

value

(A)

End target

(B)

(expected value at project

completion)

Progress

towards

target (% realized)

(A/B)

Narrative assessment (indicative max length: 50 words per output)

Core Sector

Indicator (Yes/No)

Output 1. Water

supply schemes

rehabilitated and

extended

In Lichinga project funds were used to support

emergency repair works in the water supply system.

The actual water production is about 4.500 m3/day

and the existing network is about 70 km. Cuamba

benefited from the major rehabilitation and

expansion of its water supply system, which

requires further expansion and repairs to its tertiary

network to bring additional consumers on board.

GoM is seized with the expansion of the tertiary

network in Cuamba, since the additional water is

available.

Yes

Pipes Laid for

Cuamba 40.7 km 26.6km 153%

Water treatment

plants and pumping

stations

2 2 100%

Yes New connections and

new meters installed

for Lichinga

2,883 7,000 41.2 %

New connections and

new meters installed

for Cuamba

1,012 5,000 20.2 %

Output 2: Latrines

and Hand Washing

Facilities in Schools,

Health Posts, Public

Toilets and

Demonstrations

Latrines

334 100 334%

The Construction of 334 as opposed to 100 Latrines

and Hand Washing Facilities in Schools, Health

Posts, Public Toilets and Demonstrations Latrines

of Cuamba and Lichinga Municipalities was

completed by February end 2016.

Yes

Output 5: Household

latrines in Cuamba

and Lichinga

rehabilitated and/or

constructed by 2013

n/a 16,000 n/a

6,000 and 10,000 household latrines as per PAR for

Cuamba and Lichinga respectively were reported to

have been constructed at household levels, resulting

from the Health and Hygiene Awareness

campaigns. However these figures have not been

independently verified as no household survey has

taken place.

Yes


Output 4:

Improved customer

services

P11111 11 10100%0

The regulator, CRA has been very active in ensuring

there is fairness in terms of the actual quantities of

water consumed by deploying 2 full time agents to

the cities of Lichinga and Cuamba. The project

equipped them with office equipment and

transportations means, and field kits. CRA thus

developed the capacity to be closer to the

consumers, monitor the quality of water and are able

to provide appropriate feedback to FIPAG. As

regards water quantities used at stand pipes CRA are

able to certify the quantities consumed at each

standpipe. These activities have led to improved

customer services.

YY Yes

Output 5: No of

people and

committees trained

It was planned to train local community agents

including water and sanitation committees in

schools, community leaders, water and sanitation

management committees in markets and staff from

public institutions in hygiene and health awareness.

The targets in terms of 50 staff, 100 men and 100

women and 30 committees trained was achieved.

Yes Staff trained

50 50 100%

Men and women

trained 200 200 100%

Committees trained 30 30 100%

Output 6: Gender

issues addressed in

training material 1 1 100%

One of the expected outputs was the design of social

gender sensitive mobilization materials which was

accomplished

Yes

Rating* (see

IPR

methodology)

Narrative assessment

methodology)Narrative assessment

3 In line with the decision to re-scope the project outputs to only emergency water supply system rehabilitation for

Lichinga and a major facelift for the water supply system in Cuamba, the project proceeded to deliver water

infrastructure that is capable of achieving 70% population coverage for Cuamba, and less number of beneficiaries in

Lichinga . This has contributed to development effectiveness by ensuring adequate water supply coverage for the long

to medium term for one town, and securing the short to medium term water supply for the other. The output with regards

to the construction of latrines and hand wash facilities in institutions and public places were either in line with the targets

at appraisal or far exceeded their appraisal targets. There were however complaints from the municipal authorities about

the design of the latrines which made them vulnerable to vandalism. The concerns were addressed through providing

steel doors and locks.


4. Development Objective (DO) rating

DO rating (derived from

updated IPR)*

Narrative assessment (indicative max length: 250 words

3 Due to the re-scoping exercise, Lichinga municipality’s water supply system, only received emergency repair works. On

the other hand, Cuamba’s water supply system expansion has resulted in potentially more beneficiaries than estimated at

appraisal. However the realization of the fullest potential of the investment in water supply investments in Cuamba is

contingent upon expending additional resources expanding the distribution network, which has already started. With

regard to sanitation most of the outputs have been achieved. Regarding Sanitation, the municipality authorities’ would be

required to prioritize the functions (human and financial resources), beyond just the operations and maintenance of the

facilities , and also ensuring the fullest employment of those that have been trained to impart knowledge in the area of

sanitation, hygiene and health.

Other development objectives like distance travelled to access safe water and security of the supply are largely achieved

especially for Cuamba as well as Lichinga to a lesser extent.

5. Beneficiaries ( )

Actual (A) Planned (B) Progress towards target (% realized) (A/B)

% of

women

Category (e.g. farmers, students)

136,000 161,288 84.3% 51% The general population including students

accessing water

6. Gender equality

Assessment on the performance of gender equality in the operation (indicative max length: 250 words)

With readily accessible potable water for domestic use, the burden imposed on women and children who are usually responsible for

collecting water will be reduced. Regarding the water and hygiene awareness component, the project had specific gender targets which

were accomplished; namely the men and women trained (50%) and the mention of gender issues in training materials that were developed.

Gender segregated Latrines were also built for women and men. On the whole, it is assessed that the project will generate positive impacts,

which will enhance the livelihood and well-being of the population in Lichinga and Cuamba, out of which 51% are women.

7. Unanticipated or additional outcomes

Description Type (e.g. gender,

climate change, social,

other)

Positive or

negative

Impact on project (High, Medium, Low)

The re-scoping exercise and reprioritization in one municipality assisted in the

prompt completion of the major expansion of the water supply systems within

the available investment budget, and was well received by both the Government

and the Bank.

Water, Economic,

health

Positive High

Encouragement of entrepreneurship through the PPP arrangements as well as

providing employment through the same model.

Private Sector

Development

Positive High

8. Lessons learned related to effectiveness

Key issues (max 5, add rows

as needed) Lessons learned Target audience

Project design Despite earlier completion of feasibility studies, the non-availability of the detailed

designs meant that the limited investment financing at appraisal (budget of UA 30

million reduced to UA 18 million) was outstripped at the completion of the tendering

stage. The re-scoping exercise carried out after the project detailed design, resulted

in Lichinga only receiving emergency repairs to the water supply systems. The lesson

learned is the need ensure that detailed designs are available at the approval stage.

The Bank /GoM


Staff continuity is important Lack of staff continuity especially at the municipality level is impacting the

effectiveness of the municipality to manage project related activities such as

facilitating those equipped with the training to impart knowledge to the communities

on hygiene and health awareness.

GoM, Bank

Fully involve the

implementers on project

finances

To ensure the fullest commitment from the municipalities and ensure effective it

was imperative that DNA should have devolved financial management issues to the

municipal authorities in the same way as they did with FIPAG

GoM

It is important to sustain the

sensitization campaigns

The sensitization campaigns have yielded benefits in contributing to behaviour

change and water borne/based disease reduction and there is need to sustain the

activities by institutionalising them within the Municipalities.

Bank, GoM,

Municipalities

Promotion of public-private

partnership (PPP)

The project is currently piloting the utilization of the private sector to manage and

maintain the public toilet facilities on behalf of the Municipalities, and it is considered

a positive development leading to sustainability of the facilities installed.

Bank, GoM, Donors

C Efficiency

1. Timeliness

Planned project duration – years (A)

(as per PAR) Actual implementation time – years

(B) (from effectiveness for 1st disb.) Ratio of planned and actual

implementation time (A/B)

Rating*

4 years from 2009 to 2013 5 years from 2010 to 2016 .8 3

Narrative assessment (indicative max length: 250 words)

The initial implementation timeline was supposed to be for a period of 4 years from project effectiveness to the last disbursement. The

project was extended twice to 31st March 2016. During the procurement of the consultancy services, there was a disagreement between

the Bank and the FIPAG relating to the adjudication of the bids from the shortlisted firms. The Bank’s disqualification of the JV

recommended for the award by FIPAG, led to a six month delay, as there were appeals for the Bank to reconsider its decision. A second

delay was occasioned during implementation stage, and it related to the design component of the contract. It affected the pace of

implementation as disagreements between the client and the consultant became apparent and the consultant was not flexible enough to

accept some of the guidance by the client leading to a final impasse and termination for poor performance of the consultant.

2. Resource use efficiency

Median % physical implementation of

RLF outputs financed by all financiers

(A) (see II.B.3)

Commitment rate (%) (B)

(See table 1.C – Total commitment rate

of all financiers)

Ratio of the median percentage

physical implementation and

commitment rate (A/B)

Rating*

99% 100 .99 3


The initial proposed outputs for the project was for the following key expected outputs: 36.4km and 26.6 km pipe laid and 1 water

treatment plants and pumping stations rehabilitated and expanded for Lichinga and Cuamba respectively by 2013, 5,000 and 7,000 new

connections made and new meters installed by 2013 for Cuamba and Lichinga respectively, 100 facilities constructed by 2013, 6,000 and

10,000 household latrines in Cuamba and Lichinga respectively rehabilitated and/or constructed by 2013.

For Sanitation, all the planned Latrine structures planned for Schools, Clinics and Markets were completed. Further, both Municipalities

were equipped with Tractors and Trucks to assist in Solid waste Management, which was an addition to the planned activities arising

from cost savings from the approved project goods that were purchased.


3. Cost benefit analysis

Economic Rate of Return

(at appraisal) (A)

Updated Economic Rate of Return

(at completion) (B)

Ratio of the Economic Rate of

Return at completion and at

appraisal (B/A)

Rating*

(ENPV UA 2.43 million) EIRR (16%) (ENPV 0.258million)(EIRR 12.4%) 77.5% 3


Statistics on water coverage at provincial level for 2015 indicate that access to water has improved. Coverage in Lichinga

is now at 24% and that for Cuamba is at 16% (September 2015). With an improved distribution network, as well as

anticipated increase in house connections water coverage in Cuamba is expected to reach 70% or 81,777 persons. Lichinga,

which has a population of approximately 195,221 and coverage of 4% in 2009 peaked at 28% or 54,661 persons in 2013

and currently estimated at 21% in September 2015 due to population growth, and lack of a new source of water for the

city. The mission therefore assumed a coverage rate of 28% for Lichinga, and a combined total of approximately 136,000

beneficiaries. The PAR assumed 165,000 beneficiaries. In order to be in line with other projects reviewed the project life

is put at 25 years instead of 19 years in the PAR.

The time taken to draw water has been reduced from 1.5 hours to a half hour. The time savings are expected to result in

people especially women and the girl child who bear the brunt of fetching water, having additional time on their hands to

pursue other income generating activities. The mission observed further that in the locations where public toilets were

under management of private operators contracted by the Municipalities income was being generated, and employment

created. The mission also noted with satisfaction that FIPAG continues to invest in the expansion of the tertiary distribution

network of the water supply system which will accelerate the pace of reaching the target.

There is in addition improved sanitation following the construction of 334 latrines at institutions and public places has

improved health outcomes and peoples livelihoods and although the results are mixed, is likely to result in reduced

incidences of waterborne diseases.

The economic benefits are evaluated through the use of the Economic Internal Rate of Return (EIRR) and the Economic

Net Present Value (ENPV). The hurdle rate is assumed at 12%. Mission results show that the economic internal rate of

return for the project was 13% compared to a PAR estimate of 16% whilst the economic net present value at completion is

UA 0.262 million. The financial analysis indicates that the FIPAG company for the management of water supply systems

in Lichinga and Cuamba is still effectively viable. Having adopted the real discount rate of 1.25% used at appraisal, the net

present value (NPV) generated by a combination of both Cuamba and Lichinga is UA 4.36 million compared to UA 16

million at appraisal. The FiRR is 4.7%% which is slightly lower than at appraisal This is well above the real interest rate

charged by the Bank on the loan.

4. Implementation Progress (IP)

IP Rating (derived from

updated IPR) *

Narrative comments (commenting specifically on those IP items that were rated Unsatisfactory or Highly

Unsatisfactory, as per last IPR). (indicative max length: 500 words)

3 Implementation progress was slow at the beginning of the project due to the need for re-scoping. This was compounded by

lack of collaboration and poor performance on the design front, which resulted in the termination of the Consultant contract,

RJ Burnside. After the engagement of a replacement consultant and a change to a design and build contract mode, the works

contract took off expeditiously. However the overall implementation period was extended twice which resulted in the

implementation period increasing to 6 years from the original design period of 4 years.

In addition to the expansion/renovation of the water network, construction of latrines in public spaces, purchase of

equipment, etc., the project has also supported the capacity building of the involved institutions including municipalities

and communities. Therefore, community committees were established and community activists were trained on water and

sanitation awareness. Other positive achievement included the creation of permanent and provisory jobs.


While training in water and sanitation management issues where provided, the institutionalization in both municipalities is

still low, not a priority by their own admission being necessary, among other issues, to increase staff numbers and timely

allocate financial resources, if it’s to meet the expected mandate

5. Lessons learned related to efficiency

Key issues (max 5, add rows as needed) Lessons learned Target audience

1. Flexibility is important In spite of challenges brought about by the

insufficient investment resources at approval, both

the Government and the Bank agreed on the re-

scoping to enable judicious use of the resources

and achievement of the most benefit of expanding

the water supply systems in Cuamba.

Further, in the course of the impasse brought

about by the termination of the Supervision

consultant’s contract, the Bank and the

Government agreed to restructure the contractor’s

contract to a design and build format, to enable a

couple of project activities continue whilst the

procurement for the replacement Supervision ran

its course.

The Bank

2. Operations and Maintenance of Infrastructure It is important to fully involve Municipalities in

the future, in all operational issues

(administrative, financial, procurement,

monitoring, etc.) for Sanitation projects, rather

than concentrate at the central entity responsible

for water and sanitation, since the Municipalities

are constitutional responsible for operating and

managing Sanitation.

Bank and GoM

3.Harmonization is important The two main activities (water & sanitation) were

not well connected institutionally as they are

managed at different entities, but working towards

the achievement of a common goal. The public

sanitation systems delivered in schools, health

centers and other public spaces are not being

connected to the public water supply system fast

enough, therefore reducing their effectives in

diseases reduction.

The Bank, GoM


D. SUSTAINABILITY

1. Financial sustainability

Rating

*


3 The model employed of engaging Utilities to run the water schemes ensures sustainability of the systems as the benefits of the

operator depends on the amounts collected hence encouraging efficient and sustainable operation of the systems, and utilization

by the beneficiaries. The water use charges were steadily increased from the start of the project based on the GoM executing the

project undertaking, to carry out a tariff affordability study, and implementing the results, through the water tariff adjustments.

This gives the mission comfort that the water supply component is sustainable.

Regarding sanitation, additional coordination efforts across entities such as school Managements will be required to ensure that

they are properly maintained. The public toilets in the market places and other common facilities are currently under

management (operations and maintenance) of contracted private operators.

More than 50 Staff, 100 women from the communities and 100 men were in hygiene and health awareness. In addition 30

committees ware trained to promote hygiene health and awareness. However the benefits to be derived from these trainings are

contingent upon the municipalities in both Cuamba and Lichinga sustaining the activities of those that have received such

training so that they impart their knowledge to the wider communities. This is not currently happening and DNA needs to

ensure such activities are sustained by the municipal authorities for maximum benefit. This is more the case as 80% of

population is expected to benefit from hygiene and health awareness people sensitized in water supply and sanitation, ensuring

sustainability of the facilities funded by the project and promoting awareness on prevention of water and sanitation related

diseases.

2. Institutional sustainability and strengthening of capacities

Rating

*


2 At the municipal level the project design ensured that the technical staff should be treated as any regular member of staff and

were given similar incentives. At least on paper this ensured that the staff could be absorbed without their feeling that they were

entering a lower income category. It also ensured that staff could be absorbed without additional cost to the municipalities. By

engaging a private company with a good track record to run the water facilities GoM has also ensured institutional sustainability

in water supply schemes management.

That said the fact that there is staff movement at the executive levels of the municipalities gives rise to concerns about the needed

stability to sustain sanitation activities. The municipalities and district councils should still consider the private sector as a

partner to run some of the public latrines if the maintenance and proper care of such facilities is to be sustained.


3. Ownership and sustainability of partnerships

Rating

* Narrative assessment (indicative max length: 250 words)

3 During the formulation of the water and sanitation programme there was stakeholder consultation and the communities were

allowed to express their needs and these were prioritized. As the National Directorate of Water was the implementing entity

with a project coordinator based in Maputo, all operational issues (administrative, financial, procurement, monitoring, etc.) were

handled at that level, with a limited scope of responsibilities for the municipalities. At the end of the project, the DNA is expected

to continuously support the efforts of the Municipalities to mainstream their Sanitation role, within the ambit of the ongoing

decentralization exercise of GoM., to reinforce and sustain the gains brought about by these interventions.

Regarding the water supply infrastructure, the Public Water Asset Holder, not only implemented the refurbishment and

expansion of the schemes, but also has a direct role in supporting the Water companies, which are running the operations of the

systems. The fact that the GoM is undertaking dynamic reforms in the urban water supply sector aimed at improving coverage,

quality and efficiency of services should ensure sustainability of ownership and partnerships as well as the investment. The

reform program has involved the reorganization of sector Governance mechanisms, which have facilitated a transition towards

decentralized water supply operations and management, including service regulation, investment planning, and private sector

participation in operations.

More specifically, the GoM has taken steps to provide for:

Reduced operating costs and increased efficiency, particularly through involving private sector in operations for water

supply services in 21 major cities; Maputo, Matola, Boane, Beira, Quelimane, Nampula, Pemba, Dondo, Chokwe, Xai-

Xai, Inhambane, Maxixe, Tete, Moatize, Chimoio, Manica, Gondola, Lichinga, Cuamba, Angoche and Nacala;

Tariff adjustments that support financial sustainability, and

Establishment of a Regulatory Board for the sector, which considers both service quality and financial performance.

4. Environmental and social sustainability

Rating

* Narrative assessment (indicative max length: 250 words)

3 Environmental and Social Management Plan was submitted before construction works began and was being assiduously

followed by the Contractor during the construction works. CHICO and sub-contractors had full knowledge of ESMP

requirements and were aware of and strived to meet all aspects of the environmental requirements and mitigating measures in

the ESMP. As for the environmental protection, full time staffs were deployed to execute environment protection work during

the construction, CHICO adopted effective measurements to protect natural environment and fully cooperated with local

government and relevant departments.

Social activities such as the dissemination of information on hygiene had health awareness are likely to suffer if the current high

staff turnover at the municipal councils continues. There is a need for DNA to continuously provide information to the

Municipalities as in Cuamba, where there are now newly engaged key staff who were not aware of the existence and the need

to sustain the activities of the committees trained in health and hygiene awareness.

Institutionalization in both municipalities of sanitation activities is still low and is not a priority by their own admission in terms

of staff numbers and timely allocation of financial resources. As such the the optimum management of the Sanitation facilities

is not yet in place particularly in Lichinga Municipality.


5. Lessons learned related to sustainability

Key issues (max 5, add rows as needed) Lessons learned Target audience

1. Involvement of the final operator can

ensure sustainability

1. FIPAG’s pivotal position as the project implementer of the water

component as well as the stakeholder in the entity that operates the

water supply facilities has guaranteed total commitment for

sustainability of the investment.

GoM

2. Avoid frequent staff movement at the

municipality level

There have been frequent staff movements in regard to key decision

levels and this has affected the intension to sustain the activities of

those that have received training to disseminate information on health

and sanitation activities.

GoM

3.Decentralization of Sanitation

implementation

As the Technical Assistance for the component stayed at DNA, the key

Municipalities’ technical staff ended up not being fully involved in the

operational issues of project implementation for Sanitation since the

(Mayor was the interlocutor). In future projects, attempts should be

made to locate all resources and support at the Municipality level to

ensure that the function is resourced and prioritized by the

Municipalities, in line with the GoM full decentralization policy.

GoM

III Performance of stakeholders

1. Bank performance

Rating* Narrative assessment by the Borrower on the Bank’s performance, as well as any other aspects of the project

(both quantitative and qualitative). See guidance note on issues to cover. (indicative max length: 250 words)

3 The Bank through the Mozambique Field Office provided support to the implementation of the project through processing and

certification of payment and supervision missions. The Bank’s supervision was considered satisfactory and provided timely and

candid guidance to the Implementing entities and Municipalities on the implementation of the project. The Bank conducted 12

Supervision missions which were helpful to the project implementation in helping resolve some critical issues and providing

guidance. Recommendations shared with the DNA and FIPAG were taken into account during project implementation.

In keeping with the Bank Group practices the Bank (i) promoted stakeholder participation to strengthen ownership, (ii) enforced

safeguard and fiduciary requirements; (iii) undertook high quality and continuous supervision with adequate skills mix, and (vi)

provided timely responses to requests. According to FIPAG the AfDB had good communication, good accessibility and good

reporting lines and good partnership. This was also strengthened by the fact that the Task Manager who was present during project

design continued during the implementation of the project.

Comments to be inserted by the Bank on its own performance (both quantitative and qualitative). See guidance note on

issues to cover. (indicative max length: 250 words)

The Bank conducted 12 Supervision missions which were helpful to the project implementation in helping resolve some critical

issues and providing guidance. Recommendations shared with the DNA and FIPAG were taken into account during project

implementation.

The Bank through the Mozambique Field Office provided support to the implementation of the project through processing and

certification of payment applications, and financial management supervision missions wherein recurring issues were addressed.

The revised Delegation of Authority Matrix (2012) enabled a lot more routine issues to be handled at the level of the country

manager, and in turn resulted in faster turnaround time in addressing issues. Further, the Bank’s decentralization efforts, evidenced

by the presence of sector staff at country Office, enabled closer contact and communication with the various stakeholders.

The Bank was thus positioned to assist to review, analyse and address implementation bottlenecks which arose during the impasse

between the implementing entity and the design consultant whose contract was terminated, and to proffer solutions to these.

Adherence to the Environmental and Social Management Plan and other Safeguards and Fiduciary issues were addressed during

Supervision missions, with presentation on the various activities executed, and reporting on worksite safety and training issues.

The Country Portfolio Performance Review meetings organised by the Bank to tackle systemic issues of taxes and Disbursements

that occasionally arose.


Key issues (related to

Bank performance, max

5, add rows as needed) Lessons learned

1. The Bank’s

flexibility in project

design

1. Following the re-scoping of the project the Bank was flexible enough to allow the works contract at Cuamba to

continue as a Design and Build works contract, thus minimising the delays that could emerge with the termination

of the Design and Supervision consultant, and this turned out to be very beneficial regarding the speed with which

the works were implemented.

2. Speedy response The utilization of the Delegation Authority Matrix for routine communications on procurement and other

implementation issues assisted in speeding up the implementation.

3. Bank’s proximity

to Implementation

entities (Country

presence and

decentralization)

The presence of a team of Disbursement, Procurement, Social and Sector staff at the Field Office of the Bank, enabled

the client to enjoy the opportunity of meeting at short notice a wide range of Bank stakeholders, to resolve burning

issues that cropped up now and again. It is imperative for the Bank to continue its decentralization efforts at

maintaining a Customer focus, and putting a core team of staff in country offices for closer interaction with member

countries.

2. Borrower performance

Rating

* Narrative assessment on the Borrower performance to be inserted by the Bank (both quantitative and qualitative,

depending on available information). See guidance note. (indicative max length: 250 words)

3 Despite some delay in the date of first disbursement, the borrower’s performance, assessed through feedback by the Bank and

self-evaluation, of the borrowers performance (by DNA, CRA, Municipalities and FIPAG) left some room for improvement as

the detailed designs for the water supply systems, were not available at the approval stage to enable a better grasp of the costs.

Future efforts would be directed at ensuring that the project’s detailed designs and costing are ready by the time the project is

approved. The borrower largely complied with covenants, agreements and safeguards, and provided timely counterpart funding.

This notwithstanding the implementation arrangements between DNA and the Municipalities which could have been better with

full involvement of the municipalities’ technical staff on financial decision making and procurement activities.

The GoM, FIPAG and the CRA (regulator) ensured that the required close monitoring of the quality of water delivered at point

of use was of acceptable standard. Further CRA set up liaison offices to interact and accept consumer complaints and feedbacks.

Further, the CRA discharged its obligation of ensuring that water tariffs increased from 16.68 MZM (2012) to 20.03 MZM (2015)

and are currently considering a new proposal for tariff adjustment to establish balance between cost coverage and operating

income for 2016 – 2020.

The DNA, Municipalities and FIPAG made efforts to comply with Bank supervision recommendations such as the creation of

permanent positions for the Technicians recruited initially through the project, and also the Audit recommendations in the

administration of project disbursement applications.

FIPAG and DNA as well as CRA have in large measure performed admirably. DNA has ensured that all the outputs within their

purview were accomplished and in terms of construction of latrines they exceeded the target. All the audit reports were

expeditiously carried out.

Initial project implementation bottlenecks which were attributed to a poorly performing project coordinator from the DNA was

finally resolved by the Government accepting a recommendation by the Bank, for the project coordinator to be changed. The

results were afterwards much improved with the arrival of the new project coordinator.

The FIPAG as implementing entity for the water supply component, used the project as an opportunity to build the capacity of

various young engineers, majority of who were women, working under the guidance of the more senior and experienced personnel.

The cross institutional collaboration on the project would require further improvement. Examples are those between DNA and

the Municipalities for the Sanitation component, and between DNA and FIPAG for the coordination of project activities. At the

completion of the project, a lot of progress in this regard had been made.

The confidence and overall timeliness of preparing request to the Bank improved with time.


Comments to be inserted by the Borrower on its own performance (both quantitative and qualitative). See guidance note

on issues to cover. (indicative max length: 250 words)

The Municipalities confirmed that the project did make a major impact on their performance and their ability to offer better

quality of life to citizens. Both Municipalities referred to the newly acquired Tractors, Trailers, and Waste removal trucks,

which have pushed up their operational ability to manage solid waste management for both cities. In addition, reference was

made to the Public toilets built in Markets, Clinic and Schools which are serving the general populace. Private operators have

been recruited to operate and maintain the public toilets in Cuamba. The project offered both municipalities an opportunity to

learn new skills of managing public infrastructure.

FIPAG was of the opinion that despite the insufficiency of investment funding to rehabilitate and expand the water supply of

both Lichinga and Cuamba, they were satisfied that the investment made in the water supply infrastructure in Cuamba, had

offered an opportunity to build a new infrastructure, and provides the possibility to meet the water demand of 70% of the

population, with an uninterrupted supply. They were of the view that the project enabled them to build their confidence,

particularly as the Bank provided the space and objectivity in the management of the challenges they faced with the initial

design consultancy firm on the project. Further, the project provided the organization an opportunity to expose a number of

younger engineers the opportunity to learn on the job and for the organization to consolidate its percentage of persons served in

the goal of meeting the MDG targets.

Key issues (related to Borrower performance, max 5, add rows as needed) Lessons learned

1. Devolution of decision-making is important 1. Government decision to devolve the project implementation

management to DNA and FIPAG has helped in effective implementation

of the project.

2. Allowing the private sector to run water schemes 2. The idea to let FIPAG take over the assets of Lichinga water supply

system and Cuamba has future water supply sustainability impacts.

3. Involving key stakeholders like the municipalities is

important

3. In future it is important for GoM to involve key stakeholders such as

the municipal councils in key decisions during project implementation as

this assures their commitment during the running of the facilities.

3. Performance of other stakeholders

Rating

* Narrative assessment on the performance of other stakeholders, including co-financiers, contractors and service

providers. See guidance note on issues to cover. (indicative max length: 250 words)

2 NGOs were recruited to implement aspects of the project’s sanitation component to deliver the health and Hygiene awareness

and sensitization exercise. The results were reported to be excellent. However, it is important to institutionalise the activity of

Health and Hygiene sensitizations within the Municipality in order to sustain them and achieve behaviour change.

The quality of work of the contractors, for both Lichinga (Emergency repairs to the Water supply), Cuamba (major rehabilitation

of the water supply) and the contractors that were hired for the Sanitation facilities in both Lichinga and Cuamba, were reported

to have discharged their obligations on time, and with products meeting the agreed quality. However, there were concerns that

some of the sanitation service providers did take a bit of time in preparing their disbursement applications.

One of the consulting engineers had his contract terminated following a protracted disagreement with the implementer of the

water supply component.

Key issues (related to performance of other stakeholders,

max 5, add rows as needed) Lessons learned (max 5) Target audience (for lessons

learned)

1. Ongoing and uninterrupted Support to

borrowers during implementation, regarding

Bank requirements

1. It is important that Bank supervision missions in non-

middle income members states, prone to staff attrition at the

provincial tiers of governments, include ongoing review of

implementation bottlenecks associated with the entire value

chain of work done, progress reporting and disbursement

applications at the Bank, as breaks along this chain, has an

impact on Bank’s disbursement reporting for the project.

1. The Bank


IV Summary of key lessons learned and recommendations

1. Key lessons learned

Key issues (max 5, add rows as needed) Key lessons learned Target audience

1. Devolve the project management

to the implementers (i.e. the

Municipal councils) for sustainability

whilst ensuring minimization of

fiduciary risks.

All operational issues (administrative, financial, procurement, monitoring,

etc.) were handled at DNA, leaving the municipalities very limited roles

and ended up as receivers of completed outputs. Centralised decision

making and fund management during implementation results in diminished

ownership and weak management and maintenance of project assets.

GoM, DNA

2. Promotion of professional

orientation in project execution is

important is key

The engagement of FIPAG as an implementer meant professional project

management and the quality of work done is commendable. It is also

anticipated that FIPAG will be effective in the running and maintenance of

the facilities. No additional project personnel were engaged.

The Bank, GoM,

Donors

3. Bank’s flexibility is important In spite of the re-scoping exercise the Bank decided to go ahead with the

project albeit putting the bulk of the resources in one city and reducing the

targeted beneficiaries. Making decisions on economic imperatives is

important but should not cloud the judgement on whether or not to go ahead

with the project. Cuamba people are now benefiting from reliable water

supply.

The Bank

4. Project design: It is imperative for

detailed designs for the Infrastructure

components for projects to be

available at approval.

The planned rehabilitation and expansion of water supply infrastructure in

Lichinga town, was condensed to only emergency rehabilitation activities.

The project costs estimates turned out to be inadequate for the complete

refurbishing of the water supply infrastructure in both Lichinga and

Cuamba towns, after the detailed design and bidding process were

completed. One big lesson is to ensure the completion of the detailed

designs for the Infrastructure component, which has now become adopted

in the new Bank approved PD 02/2015 which now requires that the

project’s detailed designs are available by the time the project is approved.

FIPAG, GoM

5. Harmonization of water and

sanitation is important

The two main activities (water & sanitation) were not well coordinated

across the different tiers of government, and aligned towards the

achievement of a common goal. The public sanitation systems delivered in

schools, health centres and other public spaces were not swiftly connected

to the water system, already in place.

GoM

2. Key recommendations (with particular emphasis on ensuring sustainability of project benefits)

Key issue (max 10, add rows as needed) Key recommendation Responsible Deadline

1. Harmonization (Institutional)

between water supply and sanitation

is key

For future projects it is important that the two main activities

(water & sanitation) be well connected Institutionally and

working towards the achievement of a common goal which was

not the case here.

GoM On-going

2. Water Supply Coverage It is important that FIPAG continue to invest in the distribution

network in both Lichinga and Cuamba in order to attain

coverage at above 50% overall so as to achieve benefits that are

close to appraisal estimates

FIPAG, GoM 2017

3. Ensure sustainable use of the

sanitation infrastructure

The Municipal councils should ensure that they maintain budget

lines that are adequately funded for sanitation activities

including operations and maintenance of toilet facilities and

management of solid waste. This will ensure the attainment of

outcomes as planned in the appraisal report

Municipalities, GoM On-going


4. Taking full advantage of the

capacity that has been built

It is important that the Municipal councils allocate adequate

resources in order to ensure that the activities of those trained to

carry out sensitization in hygiene and health awareness are

sustained. This is to ensure that the full benefits of the project

are realized.

GoM, Municipalities On-going

5. Staff continuity is key Staff continuity at the municipal councils is a factor in ensuring

institutional sustainability and ensuring smooth implementation

of the programme. Again the involvement. It is therefore

important that staff turnover be kept at the minimum

GoM, Municipalities,

FIPAG

On-going

6. PPP Pilot for Operating and

Maintaining completed

Infrastructure

The pilot PPP arrangement for the management of the Sanitation

facilities in Cuamba, should be further improved upon through

a comprehensive review of the key performance indicators in

the contracts.

GoM and the Bank Ongoing

V Overall PCR rating

Dimensions and criteria Rating*

DIMENSION A: RELEVANCE 3.5

Relevance of project development objective (II.A.1) 4

Relevance of project design (II.A.2) 3

DIMENSION B: EFFECTIVENESS 3

Development Objective (DO) (II.B.4) 3

DIMENSION C: EFFICIENCY 2.58

Timeliness (II.C.1) 2.56

Resource use efficiency (II.C.2) 2.76

Cost-benefit analysis (II.C.3) 2

Implementation Progress (IP) (II.C.4) 3

DIMENSION D: SUSTAINABILITY 2.50

Financial sustainability (II.D.1) 3

Institutional sustainability and strengthening of capacities (II.D.2) 2

Ownership and sustainability of partnerships (II.D.3) 2

Environmental and social sustainability (II.D.4) 3

AVERAGE OF THE DIMENSION RATINGS 2.89

OVERALL PROJECT COMPLETION RATING S


VI Acronyms and abbreviations

Acronym (add rows as needed) Full name

ADF African Development Bank

CBA Cost-benefit analysis

CRA Conselho de Regulação do Abastecimento de Água

DNA Direcção Nacional de Abastecimento de Água e Saneamento

EIRR Economic Internal Rate of Return

FIPAG Investimento e Património do Abastecimento de Água

FIRR Financial Internal Rate of Return

GoM Government of Mozambique

M&E Monitoring and Evaluation

MZFO Mozambique Field Office

NGOs Non-Governmental Organizations

NEPAD New Partnership for Africa’s Development

NPV Net Present Value

PARPA Action Plan for the Reduction of Absolute Poverty

PCR Project Completion Report

PNA National Water Policy

PPP Public Private Partnership

RMCs Regional Member Countries

SADC Southern African Development Community

UA Unit of Account

Required attachment: Updated Implementation Progress and Results Report (IPR) – the date should be the same as the PCR mission.

PROGRESS REPORT

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