An Overview of Activities and Opportunities in AfDB Financed Water and Sanitation in Mozambique Presentation to the Netherlands Business Forum The Hague, 16 February 2012

OUTLINE 1.The Purpose of the Presentation 2.Water Sector Challenges in Africa 3.AfDB Current Water and Sanitation Portfolio in Ghana 4.AfDB Planned Activities

Water Sector Challenges in Africa... Low utilization of water resources About 4% available water is used About 6% of cultivated area is irrigated Less than 6% of hydropower potential developed Growing water scarcity By 2025, 25 African countries will face water scarcity or stress High spatial and temporal variability of water resources Issues of climate variability and change worsen the situation and increases frequency of floods & drought Less than 200 m3/capita average storage capacity compared to about 6,000 m3/capita for North America. Low access to basic water supply and sanitation services 3

AfDB’s Response Institutional Framework Water Sector Initiatives Rural Water Supply and Sanitation Initiative (RWSSI) (2004) African Water Facility (AWF) (2003) Water Partnership Programme (WPP) (2002) NEPAD- WSSP 4

AfDB’s Response..… AfDB’s Water Portfolio in Mozambique Ongoing Projects Niassa Provincial Towns Water and Sanitation Project The National Rural Water Supply and Sanitation Program Planned Projects Maputo Water Supply and Sanitation Expansion Project ( )- Co financed with World Bank 5

ONGOING PROJECTS Niassa Provincial Towns Water and Sanitation Project (USD million) Objectives to improve the access, quality, availability and sustainability of water supply and sanitation services in cities in this Province, one of the main challenges for Mozambique. The project areas are Cuamba and Lichinga in Niassa Province. Components: (A) Institutional Development Support, (B) Water Supply Rehabilitation and Extension, (C) Sanitation Program and (D) Project Management and Audit. Other ongoing Bank interventions include:

ONGOING PROJECTS The National Rural Water Supply and Sanitation Program (USD 200 million): Co-financed by various development partners and will use a Sector Wide Approach with a Common Water Sector Fund. The Bank financing to the program, through an AfDB Loan of USD 7.74 million, as well as a Grant of USD 7.20 million, from the Rural Water and Sanitation Supply Initiative RWSSI. Objectives To increase sustainable access to rural water supply and sanitation and the achievement of MDG targets of 70% coverage in rural water supply and 50% in rural sanitation by Components: (A) Decentralized Planning Support; (B) Rural Water Supply Infrastructure; (C) Rural Sanitation Implementation, and (D) Alternative Technologies for Delivery of Services, which are further complemented by other areas of Program Management; Audit, and Technical Assistance.

BUSINESS OPPORTUNITIES ON ONGOING PROJECTS Due to size of contracts mainly for locally based companies Construction of water and sanitation systems Consultancy Supervision Institutional Support Consultancy

BUSINESS OPPORTUNITIES Consultancy – feasibility Studies and detailed designs – Construction Supervision – Audit services – Institutional Support Goods – Office supplies and equipment – Vehicles Works – Water Supply Infrastructure – Sanitation Infrastructure