The MCC-Mozambique compact included large scale capital investments in infrastructure and major service delivery systems, like those that manage water and sanitation. MCC compacts are a fixed amount implemented over five years, and partner governments must focus on compact results while balancing changes in costs and implementation schedules.
As MCC and the Government of Mozambique encountered higher-than-anticipated construction costs—based on additional technical and regulatory information about the design of compact investments—they agreed to make three compact changes:
- Reducing the compact’s infrastructure projects from four road segments totaling 491 kilometers to two segments totaling 253 kilometers.
- Restructuring the Water Supply and Sanitation Project and the municipal drainage activities from six in each area to two.
- MCC and MCA-Mozambique terminated a Water Supply activity (Nacala), due to an underperforming contactor. The government began working with the World Bank in 2013 to complete this water supply activity.
The Government of Mozambique committed an additional $30 million in 2012 to help complete compact components that faced procurement and civil contractor staffing delays. This enabled them to complete all road works by January 2014.