Mozambique - Second Water Services and Institutional Support Project

Overview & Synopsis

Ratings of the Water Services And Institutional Support Project II for Mozambique were as follows: outcome was moderately satisfactory, Bank performance was satisfactory, monitoring and evaluation quality was substantial. Lessons and recommendations are as follows: For urban water services to develop sustainably, the government should commit to a stable and financially viable service delivery structure, as shifting models can halt reform momentum, reduce attractiveness to private operators, and deter donor support; the World Bank should leverage its engagement to help reach a durable and attractive service delivery model, potentially through a Development Policy Loan (DPL) to advance the reform agenda. Operations in Mozambique should be strongly informed by the country’s fragility factors, including economic slowdowns, natural disasters, drought, violence, and political dynamics; projects should be designed with flexibility in geographic targeting and financing, ample implementation time, and conservative targets, and they should include a Contingent Emergency Response Component (CERC) to address frequent emergencies such as cyclones, floods, and drought and to maintain service continuity. Support to low-income household connections should continue through targeted subsidies and flexible payment schemes, which effectively incentivize utilities to connect poor households and sustain service, yield high payment rates, and likely improve health and livelihoods; expanding this approach to additional urban communities can strengthen impact and sustainability.