2005 - 2006 - Pinsent Masons Water Yearbook 2012

MOZAMBIQUE PART 2: COUNTRY ANALYSIS
Capital spending for these targets is estimated at US$30 to 35 million per annum, against US$20 to
25 million per annum in recent years. Tariffs were adjusted in 2000 to cover operation, maintenance
costs and 50% of depreciation costs. Full cost recovery is aimed for 2003.
For sewerage in urban areas, short term investment will concentrate on the rehabilitation of the
existing sanitation infrastructure, especially in cities with poor sanitary conditions such as Tete,
Quelimane, Beira and Maputo at a cost of US$5-10 million per annum. By the year 2000, urban
sanitation taxes should be introduced in all the major cities to cover operation and maintenance costs.
In 1995, approximately 100,000 urban families had latrines. The official target was to increase this
number to 200,000 families by 2000.
Freshwater
Annual Availability (1998) 100.0km³
Per capita 5,350m 3
Annual withdrawal (1992) 0.61km³
Domestic (1992) 9%
Industrial (1992) 2%
Agriculture (1992) 89%
Rural water provision
Sufficient water sources were constructed to increase the coverage of supply to the rural population
from 6% in 1980 to 30% by 1993. A 1999 survey pointed to 26% coverage that year against a
Government target of 40% by 2000. The level of service is where a shallow well or borehole
equipped with an operational hand-pump will serve 500 people in a radius of not more than 500
meters. These targets imply the construction of around 6,000 new water sources to serve an
additional 3million people. To carry out these activities an investment of about US$15 to 20million per
annum will be required between 1995 and 2000, compared with the previous level of US$4-9 million
per annum.
Groundwater
Annual availability (1998) 17.0km³
Per capita 910m 3
Privatisation and players
In 1998, Halcrow carried out an assessment of the water systems in Maputo, Beira, Quelimane,
Nampula and Pemba. This study was designed to formulate the basis for including the private sector
in the operation of these water systems. Halcrow found that tariff increases would not be affordable
outside Maputo in the medium term and that finance needs to be raised through improving the
efficiency of the services, allied with leakage reduction and increasing the number of people paying
for these services.
In 1998, the Government announced that water provision services for Maputo, Beira, Quelimane,
Nampula and Pemba would be privatised on a lease (BOT) basis for Maputo along with management
contracts for the other four cities. The contract also involves the commercialisation of water services
for Maputo's neighbouring industrial city of Matola and Beira's neighbouring city of Dondo. US$120
million is to be invested over the first five years of the contract on upgrading facilities. The contract is
linked to US$117 million in donor funding, US$92 million of the initial donor grant is for the service
expansion programme, with the remaining US$25 million for operating the services. The World Bank,
African Development Bank, Dutch Government and the European Union funded the grant.
The contract was awarded in September 1999 to Aguas de Mocambique (ADM), a consortium
consisting of SAUR (38.5%), IPE-Aguas de Portugal (31.5%) and the Mazi-Mozambique consortium
(30%). Mazi-Mozambique is led by the Mozambique Community Development Foundation, an NGO
and includes local private companies Norte Investimentos, FLOTUR and MG-Mozambique Gestores.
The consortium forecast a US$50 million turnover over the first 5 years. The contract grants ADM a
full commercial concession in Maputo and Matola for 15 years and similar concessions in the other
five cities for five years.
MAJOR CITIES
City 2000 2015 Status
Maputo 1,092,000 1,899,000 BOT lease contract for water provision
145 Pinsent Masons Water Yearbook 2005 – 2006