Closed Compact Report: Mozambique Compact | March 2015

Water Supply and Sanitation Project

  • $203,585,393Original Compact Project Amount
  • $200,221,661Total Disbursed

Estimated Benefits

Estimated Benefits for the Water and Sanitation Project
Time Estimated Economic Rate of Return (ERR) over 20 years Estimated beneficiaries over 20 years Estimated net benefits over 20 years
At compact closure 19.2 percent 780,908 $52,360,000

Estimated benefits corresponds to $123.5 million of project funds, where cost-benefit analysis was conducted.

Project Description

The Water Supply and Sanitation Project was designed to improve access to safe, reliable water supplies and sanitation services, recognizing that lack of access to these resources are a barrier to growth and health. This project aimed to increase productivity and reduce waterborne diseases—one of the leading causes of death in children under five. The project was also designed to address issues of inadequate access and unreliable service delivery in small- to mid-sized towns. Project teams constructed more than 614 rural water points (boreholes with hand pumps), upgraded and expanded two municipal drainage systems, and upgraded and expanded two urban water supply systems.  Additionally, MCC, the Government of Mozambique and other sector stakeholders worked to develop and apply new policies to promote sustainable management of Mozambique’s water resources infrastructure. This included the creation of a new, semi-autonomous government entity (AIAS) responsible for the management of water supply and sanitation assets in 134 of Mozambique’s medium-sized cities and towns.

Evaluation Findings

MCC commissioned a performance evaluation of the Urban Water Supply and Drainage and Sanitation Activities. The evaluation assessed the reliability of water supply, efficacy of the drainage systems, number of beneficiaries, maintenance practices, sustainability, and intended health outcomes. The evaluation was completed in December 2019.

Key Findings from the Urban Water Supply and Drainage and Sanitation Activities Final Evaluation Report include:

Capacity, Maintenance, and Sustainability

  • Overall, the Nampula and Nacala city water supply infrastructure are well-maintained and their sustainability is linked to the capacity of the water operator.
  • Maintenance of drainage has been a challenge, as sanitation companies were not ready for autonomous management.

Water Supply

  • Nampula city water supply investments contributed to increased water volume and service hours. However, full intended benefits are limited by the water volume available from the dam itself.
  • The Nacala Dam investment increased the system’s potential capacity, but water supply to customers continues to be constrained by the incomplete treatment and distribution works.


  • Residents credit perceived flood reduction to the drainage systems and noted that drains help water flow off the streets.
  • Even so, this investment does not seem to have affected the incidence of malaria in Nampula and Quelimane. Households and health workers report malaria continues to afflict families living nearby.

Cost-effectiveness and Lessons

  • Overall, it is doubtful that these investments were cost-effective, as key outcomes were non-existent or marginal.
  • To realize benefits from improved piped water systems, the supply, treatment, and distribution need to be in place.
  • Infrastructure needed to be paired with sufficient capacity building to ensure sustainability.

MCC commissioned an impact evaluation of the Rural Water Supply Activity. The Final Evaluation Report was published in August 2014.

Key Findings include:

Safer Water Access and Use

  • Households in project communities switched from majority unsafe water sources – 85.4 percent unprotected wells – to majority safe – 77.6 percent – as a result of the installed hand pumps.
  • Water quality testing showed higher quality water at the hand pumps.
  • Median household water consumption from safer sources in project communities increased 16.7 liters per capita per day compared to households in communities that did not receive the intervention.
  • The probability of households using the hand pumps decreased when farther than 1.2 km from hand pumps.

Time Savings and Productivity

  • Water collectors (mostly women and youth) reported time savings of 55 minutes per each 20 liters of water collected.
  • Time savings was used for domestic chores, rest, spending time with family, and working in the field.

Hygiene and Sanitation Behaviors and Health Outcomes

  • Community-based training failed to impact sanitation and handwashing behavior.
  • The Rural Water Supply Activity, in combination with the other project interventions, failed to reduce the percentage of reported waterborne illness in children under 5.
  • Continued use of unsafe water sources, household water storage methods, and inadequate hygiene and water management practices prevented predicted health improvements.

Household Incomes and Sustainability

  • The project had no impact on median household income in project communities.
  • While water committees were still functioning at a high level, they raised sustainability concerns, including lack of sufficient revenues, access to parts, and technical capacity for repairs.

Key performance indicators and outputs at compact end date

Key performance indicators and outputs at compact end date
Activity/Outcome Key Performance Indicator Baseline End of Compact Target Quarter 1 through Quarter 20 Actuals (as of Dec 2013) Percent Compact Target Satisfied (as of Dec 2013)
Construction of Rural Water Points Amount disbursed for rural water points construction contracts 0 8,597,705 8,223,869 96%
Percent of rural population of the six intervention districts with access to improved water sources 0 22.1 23.4 106%
Persons trained in hygiene and sanitary best practices 0 7,200 8,400 117%
Rural water points constructed

  • Rural water points constructed refer to communal hand pumps in Nampula Province and communal small scale solar systems in Cabo Delgado Province.
0 600 614 102%
Municipal Sanitation and Drainage Systems Amount disbursed for municipal sanitation and drainage construction contracts 0 51,354,969 51,222,254 100%
Value of Municipal Sanitation and Drainage Systems construction contracts signed 0 40,437,763 51,354,969 127%
Urban Water Supply Systems Percent of revised construction contract disbursed for water systems 0 100 81 81%
Value of contracts signed for construction of Water Systems 0 91,518,535 109,547,822 120%