VZCZCXRO5172
RR RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHTO #1181/01 2591152
ZNR UUUUU ZZH
R 161152Z SEP 06
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC 6041
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHLMC/MILLENNIUM CHALLENGE CORP  0085

UNCLAS SECTION 01 OF 03 MAPUTO 001181 
 
SIPDIS 
 
SIPDIS 
 
AF/S FOR HTREGER 
MCC FOR SGAULL 
USAID FOR AA/AFR AND AFR/SA 
 
E.O. 12958: N/A 
TAGS: EAID MZ
SUBJECT: Advancing U.S. Efforts on Water and Sanitation in 
Mozambique 
 
Reference: State 128229 
 
MAPUTO 00001181  001.2 OF 003 
 
 
¶1. (U) The information contained in this response was 
provided to Post by USAID Maputo. 
 
Overview 
--------- 
 
¶2. (U) As of 2002, Mozambique's overall access to water 
supply was 39% (40% in urban areas and 36% in rural), while 
access to sanitation was 33% (33% for both urban and 
rural).  With a mean annual rainfall of about 800 to 1000 mm 
in the coast and about 1000 to 2000 mm in the north, and 
upstream rivers generating for about 54% of water sources in 
the country, about 75% (14 million) of the total population 
rely on ground water. 
 
Mozambique's Need and Commitment to Water and Sanitation 
Issues 
--------------------------------------------- -------------- 
 
¶3. (U) The institutional and legal framework is coherent and 
largely consistent with most middle to high income 
countries.  Water resources management is being 
decentralized with the creation of regional water 
administrations (ARAs).  In the area of water supply and 
sanitation, the 1995 water policy was approved and started 
to implement a framework for delegated management, 
attracting the private sector for utility management. Under 
this framework, two new institutions were created; the water 
regulatory council (CRA) which is responsible for economic 
and other regulation of water sector systems that are under 
the delegated management; and the investment and asset fund 
for water supply (FIPAG), which has been set up as the body 
that owns the assets in urban areas that are either managed 
or leased by the private operators. 
 
¶4. (U) Public expenditure in the sector is still very low 
(about USD19 million = 0.3% of GDP in 2004). 
Floods and droughts have a direct impact in poverty and 
quality of life of the population. (Example: during floods 
of 2000, about 11% of the cultivated land in four provinces 
was flooded and about 490,000 people were either displaced 
or trapped in flood isolated areas).  However, as a sign of 
the government's commitment to the sector, about 50% of the 
current draft concept paper for the Millennium Challenge 
Corporation is in the water sector (mostly infrastructure 
development for improved access). 
 
Opportunities to Strengthen U.S. Engagement 
-------------------------------------------- 
 
¶5. (U) Given the rate of urban population growth and the 
existing level of urban water coverage, it is unlikely that 
the Millennium Development Goal of 90% coverage would be 
reached within the next two decades if policy were to focus 
exclusively on providing household connections.  Even if 
standpipes are an interim and not entirely satisfactory 
solution, nonetheless they provide a route to ensuring that 
almost all of the urban population has access to some form 
of piped water supply within a few years. In the rural 
areas, the government has pursued the demand-driven 
approach, which requires communities to make a specific 
request for the installation of a water source, pay a fee, 
and take responsibility for its maintenance. Even with this 
effort, about 30% of water sources are non-functional due to 
various reasons (mainly lack of spare parts, poor 
supervision of construction, or weak community management). 
Additionally, the per capita cost of a rural water point is 
about US$50, much more costly than in neighboring countries. 
This is mainly due to low population density and high 
operational cost of the machinery used. 
 
The Main Issues Involved in Developing the Water Sector in 
Mozambique 
--------------------------------------------- -------------- 
 
¶6. (U) Main issues for developing the water sector in 
Mozambique as identified in the country status overview are: 
 
-- Implementation Capacity at all levels and amongst 
different actors to transition to the new institutional 
arrangements, particularly in the rural areas. 
 
-- High dependency on off budget donor funding limits 
effectiveness of national strategies. While dependency will 
remain high in the medium term, the sector needs to address 
 
MAPUTO 00001181  002.2 OF 003 
 
 
the number of one-off projects, and increase coordination 
and collaboration amongst all actors involved in the sector. 
 
-- Developmental asymmetries or more attention given to the 
urban areas at the expense of the rural areas. Flows to 
rural areas should increase, while disbursements in the 
urban areas should be made in a timely manner. 
 
-- Reliable M&E systems need to be developed and maintained 
in order to provide accurate and timely information to 
support planning and tracking of implementation. 
 
The Millennium Challenge Corporation, Water and Sanitation 
--------------------------------------------- -------------- 
 
¶7. (U) Under the Mozambican government's Millennium 
Challenge Account (MCA) concept paper, one of the components 
is water and sanitation with an estimated budget of 
USD$150,000,000 over a period of 5-years.  Activities will 
be focused mainly in the northern provinces of Zambezia, 
Nampula, Niassa and Cabo Delgado.  This component is 
subdivided into to the following 4 objectives: (1) Improve 
and increase availability of fresh water (5 projects, 
including the rehabilitation of the reservoir of an urban 
dam); (2) Increase access to potable water and water for 
productive uses (23 projects which include the 
rehabilitation and upgrading of water systems serving 
municipalities and rural towns in districts and construction 
of water points in rural areas); (3) Provide adequate 
sanitation and drainage services (7 projects where sewerage 
and drainage networks will be rehabilitated and expanded in 
the target provinces, autonomous sanitation services under 
restructured management, according to commercial principles, 
will be also established); (4) Institutional development and 
capacity building for better project  implementation and 
management of water sector services (activities have been 
considered both at project and at a more global level). 
 
Opportunities Where Programs Could Be Integrated Into, 
Leverage Off Of and/or Support Mission Programs and Efforts 
--------------------------------------------- -------------- 
 
¶8. (U) Several USAID programs are contributing to 
improvements of the water and sanitation sector in 
Mozambique, and there are also opportunities for increased 
contribution subject to availability of additional 
funding.  Food security activities have enhanced sustainable 
water use for agriculture through improved irrigation 
infrastructure, use of treadle pumps and adoption of drought 
tolerant crops. In order to mitigate against natural 
disaster, USAID has also provided equipment and technical 
assistance to the GoM to monitor the water levels of key 
rivers and institute an early warning system to broadcast 
information in the event of a flood. Additionally, OFDA has 
worked with communities in drought prone areas to build 
small reservoirs to ensure adequate water for drinking, 
agriculture and household needs. Through its integrated food 
security program, USAID's NGO partners have also built 
latrines to improve sanitation practices. There is anecdotal 
evidence that malnutrition rates have decreased only 
marginally despite strong economic growth, in part due to 
the impact of water-born and other diseases.  Throughout 
USAID's Health and HIV programs, the sale of water treatment 
kits contributes to the reduction of water-borne diseases in 
children under-five and people living with HIV/AIDS. 
USAID's municipal governance project, which works in 5 
municipalities (Chimoio, Vilankulo, Gurue, Nacala and 
Monapo), contains an infrastructure investment component 
that funds minor infrastructure projects based on community 
priorities. Since water has been identified as a top 
priority in all five target municipalities, the project is 
conducting and will conduct water-related activities, such 
as opening of boreholes and installation of water pumps. It 
also supports studies to identify the most effective ways to 
manage water distribution systems in the five 
municipalities. 
 
¶9. (U) USAID is currently in the process of developing a 
Global Development Alliance (GDA) in partnership with Coca- 
Cola through the Community Watersheds Partnership 
Initiative.  The project would provide access to water to 
neighborhoods and communities in the city of Chimoio that 
have never had running water before, and it complements an 
existing project being implemented by the Dutch to increase 
the water supply to the city and its surrounding 
communities.  The activity is a prime example of USAID's 
efforts to leverage additional resources to invest in this 
 
MAPUTO 00001181  003.2 OF 003 
 
 
area.  Funding for the GDA project would come from two 
different technical programs in the USAID Mission, the local 
Coca-Cola Company in Mozambique, and the GDA Secretariat in 
USAID/Washington. 
 
¶10. (U) With additional funding USAID would expand existing 
interventions to a wider area and would introduce more 
complex activities, such as support for water reticulation 
systems - new or rehabilitation of existing ones -- or 
identification of additional sources of water where current 
sources are insufficient. Additional investments could also 
be made in improving sanitation infrastructure and systems 
and expanding the existing water treatment kits activity to 
reach more people. 
 
 
Raspolic