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Mozambique Maputo World Water Forum 5 Istanbul 16-22 March, 2009 Topic 4.4.2

Mozambique Maputo World Water Forum 5 Istanbul 16-22 March, 2009 Topic 4.4.2. SMALL SCALE INDEPENDENT PROVIDERS SSIP. Mozambique. Population: 20,530,714 habitants. FIPAG : Assets Holding and Investment Fund Created in 1998

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Mozambique Maputo World Water Forum 5 Istanbul 16-22 March, 2009 Topic 4.4.2

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  1. Mozambique Maputo World Water Forum 5 Istanbul 16-22 March, 2009 Topic 4.4.2 SMALL SCALE INDEPENDENT PROVIDERS SSIP

  2. 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 2

  3. Maputo Water Supply SERVICE PROVIDERS • Formal: AdeM -15 years lease contract • Informal: 427 SSIP ADEM • All the historical centre • Most part of first expansion area • Conventional network • FIPAG´s Investment SMALL SCALE INDEPENDENT PROVIDERS- SSIP • Serves the two expansion areas • Private investment 3

  4. TheSSIP´sWaterSchemes SSIP ´s typology vs clients served Investment:± 20.000 USD Typical infrastructures:Boreholes, water tower and HDPE tanks and network • Public investment unable to keep pace with development • Primarily constructed to solve individual needs • Turned into a business due to demand 4

  5. Alternative Institutionaland Regulatory Framework • Lease contract to manage new public systems: • FIPAG is building small systems to be managed by SSIP: to serve up to 10.000 people each; • Duration of the contract: 5-10 years • 2. Extension of existing SSIP systems through OBA subsidy • FIPAG will subsidize the connection to reach, through SSP´s systems the poorest quintiles • Small duration contracts: 6-12 months • 3. Partnerships between the main operator and SSIP (leased area): • Complementarities to increase availability of water and number of people served; • Specific contractual arrangements Regulatory framework Indirect regulation: The Regulator defines the rules but regulation is done locally by Municipalities 5

  6. WWF4 – Right to Choose SSIP´s included in the National Water Policy, 2007 • Recognition of SSIP role and making profit their know how VISION Build on the existing capacities to develop reliable Mozambican water operators 6

  7. Performance Standards 1. SSIP´s Licensing Process All SSIP´s existing systems and new ones Objectives: • Creation of a legal environment for the SSIP´s • Regulation and supervision of SSIP´s activities; • Performance standards Phasing Institutional Coordination Licensing Body (FIPAG), Regulator (CRA), Catchments authority (ARA SUL), Ministry of Health, Municipalities and formal operator

  8. CONSTRAINTS • SSIP´s low technical capacities • Multiple networks in the same area • Weak organization: only 50% of the SSIP are members of 2 associations Three SSIP´s network reticulation in a same area

  9. CHALLENGES • PAVING THE WAY FOR LONG TERM DEVELOPMENT • Making SSIP a Partner for the Future • Develop SSIP´s technical capacities • Strengthen the SSIP professional organization • Structure the SSIP leased area • Long term sustainability 9

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