MZ - Additional Financing - Water Services and Institutional Support II (WB-P165463)

Countries
  • Mozambique
Where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 14, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Government of Mozambique
The holder of the loan, grant, or other investment.
Sectors
  • Technical Cooperation
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 75.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 101.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Jul 26, 2019

Disclosed by Bank May 1, 2019


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Project Description

According to bank documents, the objectives of the Project are to: (i) Increase water service coverage in key cities of Mozambique’s territory; (ii) Strengthen the institutional and regulatory capacity for water supply services in the northern, central and southern regions of Mozambique’s territory; and (iii) Support Mozambique to respond promptly and effectively to an Eligible Crisis or Emergency.

The additional funding (AF) will finance water supply investments in the cities of Tete and Moatize that have been affected by the Cyclone Idai, extend project activities to the city of Nacala with co-financing from the Government of the Netherlands. The project has two components;

  1. Rehabilitation and Expansion of Water Supply Production and Distribution (total cost U$153.8 million – U$26 million from DRIVE and U$127.8 million from IDA, of which US$61.3 financed from AF). The restructured Component 1 will continue to support the investments in Beira, Dondo, Pemba, Tete and Moatize, and will finance investments in Tete and Moatize and scale investments in one new city, Nacala and small towns affected by the Cyclone Idai. These investments will enable the GoM to provide services to a large number of low-income residents in the largest urban areas in the country and to reconstruct part of the damaged water supply infrastructure by the Cyclone Idai. Component 1 will be scaled up to include new investments in Nacala. These investments are aimed at restoring the water supply production and distribution capacity, as well as enhance the system resilience to climate related events. The Government of the Netherlands will co-finance 50 percent of the costs of the project activities in Nacala. Specifically, this component will be modified to include:
    1. Subcomponent 1a:
      1. Electromechanical equipment for the existing raw water intake that was built at the time the Nacala Dam was rehabilitated, along with 2 km of raw water transmission main from the intake to the water treatment plant.
      2. Construction of a water treatment plant (to replace the old one) with treatment capacity of 25,000 m3/day, including the associated electromechanical equipment, pumping stations and a 400 m3 reservoir.
      3. Construction of a 33 km transmission main (to replace the old one) with associated booster stations, rehabilitation of existing reservoirs.
    2. Subcomponent 1b:
      d. Rehabilitation and construction of distribution centers.
      e. Rehabilitation and expansion of 150 km of distribution network.
      f. Rehabilitation of 15 km of large distribution main
  2. Institutional Support (U$18.9 million from IDA). This Component will cover the financing gap of U$6.4 million from the original project and utilize the resources to cover operating costs, in addition to the costs related to project management, supervision of contracts under Component 1, audits, training and various technical studies as needed.
Investment Description
  • World Bank (WB)

World Bank Group Financing
IDA Grant - USD 75.00M


Non-World Bank Group Financing
NETHERLANDS: Min. of Foreign Affairs / Min. of Dev. Coop. - USD 26.00M

Contact Information

World Bank:
Lizmara Kirchner
Senior Water Supply and Sanitation Specialist

Odete Duarte Muximpua
Water Supply and Sanitation Specialist

Borrower:
Ministryof Economy and Finance

Implementing Agency:
FIPAG
Pedro Paulino
General Director
fipag@fipag.co.mz 

ACCOUNTABILITY MECHANISM OF WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.