Mozambique Population: 20,530,714 habitants FIPAG : Assets Holding and Investment Fund Created in 1998 Responsible for 14 Urban Utilities managed by two International Operators

Problems serving the urban poor Low consumption (around 5 m3/month) and constraints to pay consumption on a monthly basis Low consumption (around 5 m3/month) and constraints to pay consumption on a monthly basis Poor accessibility: poor supervision and inefficient maintenance poor supervision and inefficient maintenance Prone to illegal connections Prone to illegal connections Lack of addressing system: Inadequate reading and invoicing Inadequate reading and invoicing Informal settlement: hard to build basic infra-structure hard to build basic infra-structure Drainage and sanitation problems: protection of the network needed protection of the network needed Low capacity to pay particularly the connection cost Low capacity to pay particularly the connection cost Consumers profile:

Maputo Peri-urban area Expansion started in the year 2000 Population: Growth rate: 6% to 10% Not covered by the conventional network Peri-urban area Expansion started in the 80´s Population: Growth rate: 2% Partially covered by the conventional network Cement city Population: Growth rate: 1% Conventional Network covered area Total population: 1.8 Milion

Response to water demand SMALL SCALE INDEPENDENT PROVIDERS- SSIP Serves the two expansion areas with own networks (purely private investment)Serves the two expansion areas with own networks (purely private investment) InformalInformal Typical infrastructures: Boreholes, water tower and HDPE tanks and networkTypical infrastructures: Boreholes, water tower and HDPE tanks and network Primarily constructed to solve individual needsPrimarily constructed to solve individual needs Turned into a business due to demandTurned into a business due to demand 427 Small Systems PC and 300 Standpipes served-20% coverage

6 Response to water demand Water Resale in yards: Developed mainly in areas served by conventional network; Developed mainly in areas served by conventional network; Informal activity; Informal activity; Each yard tap serves around 50 households; Each yard tap serves around 50 households; Charge per bucket (average 20 l capacity); Charge per bucket (average 20 l capacity); Inadequate with progressive tariffs. Inadequate with progressive tariffs. Potential source of non-revenue water!

The way forward 1.Formalise these types of service delivery The on going SSIP´s licensing process 2. Include these types of service delivery in planning, budgeting and negotiations with the Funding Agencies Component 3 - Maputo Water Supply Project, funded by EIB, EU, AFD,ORET, Mozambican Government 3.Provide support to these providers to develop their activities OBA Subsidy for poorest quintiles served by SSIP´s small systems Technical assistance and study tours 4. Develop partnerships with other actors to complement Government funding Water Aid and WSUP funding to extend secondary and tertiary network and capacity building

Partnership with WSUP Develop and consolidate partnerships with the main stakeholders particularly FIPAG and the formal operator (AdeM) Activities in areas with some reticulation but in poor working condition and badly structured Total beneficiaries 162,000 people Extension of secondary and tertiary networks Construction of household and yard connections Baseline surveys for water supply Coordination meeting FIPAG-WSUP in London Baseline survey- Questionnaire session Main Activities Training and building capacity of a small private operator in a neighborhood within the leased area

CHALLENGES ENSURING NO BACKFIRE Public interest protected Engagement of the providers with long term perspective Engagement of the providers with long term perspective Engagement of other partners: local institutions and funding agencies Engagement of other partners: local institutions and funding agencies Appropriate regulation and supervision Appropriate regulation and supervision LONG TERM SUSTAINABILITY REQUIRED!