Release date: 27 February 2006
Promoter – Financial Intermediary
FIPAG - Fundo do Investimento e Património do Abastecimento de Água (Fund for the Investment and Assets of Water Supply Systems)Location
Description
The project will improve and expand the water supply services for the Greater Maputo area, with a population of 1.7 million inhabitants of which 48% live in absolute poverty. The water supply system is operated on the basis of a Lease Contract, by a private company with European and local ownership.
Objectives
The project has three main objectives: (i) increase the water production by about 2/3 of the current installed capacity; (ii) improve the system’s performance by reducing unaccounted for water; (iii) expand water supply in the poor peri-urban areas with the support of small local private operators.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 31 million
Total cost (Approximate amount)
EUR 95 million with a first stage of EUR 76 million
Environmental aspects
In Mozambique, the 1997 Law on Environment provides the legal framework for all environmental protection activities, including those affecting water resources. The project’s impacts are largely expected to be positive and mitigating measures will be part of an Environmental Management Plan.
Procurement
The procurement procedures followed by the promoter are common international practice, are suitable for the project and will comply with EIB guidelines.
Status
Signed - 21/07/2006