Integrated Water Supply and Sanitation Project for Nampula and Niasa Provinces

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) A. PROJECT DATA AND KEY DATES

I. BASIC INFORMATION

Project or Loan Number Project Name Country PCR Date (African Development Fund) Integrated Water Supply and Sanitation Mozambique December Credit Number: 2100150000735 Project for Nampula and Niassa 2009 Grant Number: 2100155000250 Provinces (ASNANI) Lending Instruments: Loan and TAF Grant Sector: Water and Environmental Classification: Sanitation Category II Original Commitment Amount Cancelled Amount Disbursed Percent Disbursed (of original commitment) ADF Loan - UA 15.77 million UA 0.00 ADF Loan – UA 13.39 ADF Loan – 84.9% TAF Grant - UA 1.00 million million TAF Grant – 62.0% GOM - UA 1.86 million TAF Grant – UA 0.62 million GOM – 122.6%** GOM – UA 2.28 million Client: Government of the Republic of Mozambique Executing Agencies: Ministry of Public Works and Housing (MOPH), National Directorate of Water (DNA) Co-financers and other External Partners: GOM - UA 1.86 million ** The GOM contribution appeared 22% more than the amount stated in the appraisal report because i) GOM originally thought their contribution included taxes, and ii) there were increases in the scope of works which GOM also contributed to.

II. KEY DATES Concept Review Appraisal Approval Identification Mission - June 1999 September 2000 December 2000 Preparation Mission - June 2000 Restructuring(s): Revised/Actual Dates The loan and grant agreements were signed on 29 December 2000 and declared effective on 29 July 2002. Disbursement commenced in September 2003. Subsequently, the deadline for last disbursement was extended from 30 June 2008 until 30 June 2009 and again until 30 September 2009.

Difference in months Original Date Restructured Date Actual Date [Actual – original / restructured] EFFECTIVENESS July 2002 July 2002 0 MID-TERM REVIEW May 2003 No MTR was carried Not applicable out CLOSING June 2008 June 2009 September 2009 18

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) III. RATINGS SUMMARY CRITERIA SUB-CRITERIA RATING Achievement of Outputs 3.5 Achievement of Outcomes 2.3 PROJECT OUTCOME Timeliness 2.0 OVE RALL PROJECT OUTCOME 2.6 Design and Readiness 2.5 BANK PERFORMANCE Supervision 3.0 OVERALL BANK PERFORMANCE 2.75 Design and Readiness 2.5 CLIENT Implementation 2.5 PERFORMANCE OVERALLCLIENT PERFORMANCE 2.5

IV. RESPONSIBLE BANK STAFF POSITION AT APPROVAL AT COMPLETION Country Director G. Giorgis, Director, OCDS Frank Black, ORSB Sector Director P.E. Njuguna, Ag. Division Manager, Sering. Jallow, OIC, OWAS/AWF OCDS.4 Project Team E.H.J Schroten, Sanitary Engineer, Boniface Aleobua, Principal Water and Sanitation Leader OCDS.4 Engineer, OWAS.2 PCR Team Leader William Joiner, Consultant Water and Sanitation Engineer

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) B. PROJECT CONTEXT

GOM, as part of its effort to reduce poverty and improve living conditions, requested ADB to consider financing the proposed project. Nampula and Niassa provinces are among the poorest in the country and have the lowest level of coverage of water supply and sanitation in rural areas. GOM, through the Rural Water Transition Plan (RWTP) and the Manual for Implementation of Rural Water and Sanitation Projects (MIPAR), adopted technologies for water supply and sanitation that can be managed and maintained by communities. Standard designs for these technologies were developed for use by projects. Modalities and implementation procedures were further elaborated in the Project Implementation Manual (PIM) in 2002. Prior to ASNANI, ADB had financed two projects and one study in the sector, i.e. (a) Maputo Water Supply Emergency Project (1981); and (b) Maputo Water Supply Rehabilitation Project approved in 1999, and, (c) Four District Centers Water Supply and Sanitation Study approved in 1998. The PCR for Maputo Water Supply Emergency Project in 1992 concluded that the project was completed as envisaged at appraisal, but with considerable delays. Implementation took nearly ten years, and the Bank- financed components took three years longer than envisaged at appraisal due to the difficult economic situation in the country, pursuit of the Government policy of promoting local enterprise, and overly optimistic planning. Lessons from the above interventions include; (i) Monitoring and evaluation are hampered by lack of timely and accurate information. Practical, measurable indicators are important for the IA and for the Bank. (ii) Implementation plans were too optimistic, and (iii) Implementation can be improved if implementers have a realistic perception of the causes and cost of delays as well as the importance of rigorous monitoring and evaluation. Other completed and ongoing initiatives of relevance to the project include the Inhambane Rural Water Development Programme (PDARI), a CIDA-supported project in Inhambane Province, completed in 2008, and the ongoing “One Million” Initiative in Manica, Sofala and Tete provinces, currently being implemented by UNICEF. Both projects generated lessons and experience of relevance to ASNANI, particularly in the areas of decentralized and community management, capacity building and contract management. ADB’s Vision considers infrastructure, including rural water supply and sanitation, as a key priority and stresses participatory approaches to development. The ADB Country Strategy Paper (CSP) for Mozambique (2006-2009) saw improvement of rural infrastructure, including water supply and sanitation, as important for the overall development of the country. By benefiting the rural population in the two of the poorest and most underserved provinces in Mozambique, the project enhanced access to rural services and supported both GOM’s and the Bank’s poverty alleviation strategy.

The rationale for the project was largely coherent and responsive to GOM and Bank priorities at appraisal at the conceptual, policy and strategy level. Institutional and private sector capacity, as well as the pace and effectiveness at which decentralization occurred were constraints throughout the project period. Risk mitigation measures were not adequately elaborated, included in project plans and implemented as required.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) C. PROJECT OBJECTIVES AND LOGICAL FRAMEWORK (LOG FRAME)

1. State the Project Development Objectives (as set out in the Appraisal Report) The project’s development objective is to assist in providing safe and reliable water supply and environmental sanitation to the rural population in Niassa and Nampula provinces. 2. Describe the major project components and indicate how each will contribute to achieving the Project’s Development Objectives.1 (I) Institutional development and capacity building - (i) Training for water committee, community, district and provincial levels of staff of DPOPH, DAR and DAS, to improve capacity to coordinate, plan, monitor and evaluate, supervise construction ,mobilize communities and conduct sanitation and health education programs; (ii) to plan and conduct workshops, progress reporting, and exchange experience with other development agencies; conduct studies, ensure proper implementation of the demand driven approach, implement water supply systems; (iii) study tours to other provinces and countries for DPOPH staff; (iv) fellowships for DPOPH staff. (II) Environmental health education - Change hygiene behavior and practices regarding water points, use and storage of water, hygienic behavior, use of sanitation facilities, and prevention of water-borne and water-related diseases in communities, schools and health posts. Students will be involved, as well as teachers and parents. Activities will be planned in close coordination with relevant health and education authorities. (III) Construction of water supply and sanitation systems – (i) construction of 1,170 new wells and boreholes; (ii) rehabilitation of 470 wells and boreholes; (iii) construction of 600 rainwater harvesting systems; (iv) rehabilitation of two small piped water supply systems; (v) construction of sanitation facilities in 200 schools and 130 health posts in the hope that the principle would be replicated at the household level; (vi) construction of staff houses and rehabilitation/construction of office blocks. (IV) Support commercial network of spare parts for hand pumps – Train shop owners and mechanics to develop a network with communities. Develop capacity of local artisans to repair water pumps. (V) Support for monitoring and water conservation - Efforts by provinces and districts to monitor environmental conditions and take action where needed. (VI) Monitoring and Evaluation, and Audit – Develop an MIS system (MISNANI) and routine audits of project accounts, procurement, contract management and financial transactions. Annual auditing of project accounts. Regular auditing will help government to decentralize activities in provinces. (VII) Support improved system management, studies, designs, tender documents preparation for four provincial cities - A feasibility and design study of four cities in Niassa and Nampula provinces; Lichinga and Cuamba in Niassa Province and Angoche and Nacala in Nampula Province. Determine appropriate management strategies, and institutional arrangements for water supply, sanitation and solid waste services. Recommend how to upgrade water companies and how to transform these into autonomous entities. Project management and institutional support – Technical support, training, transport and staff housing and equipment and funds for long-term technical assistance in project and contract management and community mobilization. DNA will provide a project coordinator, project managers in each province, a financial officer/senior accountant, and technical staff to plan and supervise community work and contract management. To strengthen existing capacity, a Project Coordination Unit (PCU) will be established in DNA headed by a National Project Coordinator and supported by technical assistance, one expert for the first three years of the project. PMUs in each project province will be established in DPOPH/DAS, headed by managers assisted by a technical assistance to be phased out during the project period. Consultants or NGOs will be engaged to sensitize communities to make informed choices regarding water supply and sanitation improvements. 4

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

Inter-ministerial coordination at provincial level will be through provincial steering committees, including coordination with relevant ministries at national level and coordination with provincial agencies in the rural water and sanitation sub-sector and community development. ______1 This description of project components is based on the Appraisal Report (September 2000).

3. Assessment of project objectives: WORKING PROJECT OBJECTIVES DIMENSIONS ASSESSMENT SCORE Relevant to the country’s The project supported GOM’s efforts to alleviate poverty, development priorities provide basic services to remote rural areas, to achieve RELEVANT the MDG targets for water supply and sanitation and 4 promoted decentralized planning and management of rural infrastructure. Objectives could in In principle, yes, but in practice the time frame proved to principle be achieved with be unrealistic, and two extensions totaling 18 months ACHIEVABLE 2 the project inputs and in were eventually granted. the expected time frame. Consistent with the Bank’s The 2006-2009 CSP contained two main objectives: (1) country program improve governance and reinforce economic reforms and institutional capacity, and (2) develop infrastructure and 3 increase access to basic economic and social services. The project objectives and outputs were generally consistent with these objectives. Consistent with the Bank’s policies concerning: • Poverty focus Achieved by focusing on rural areas in provinces with (beneficiaries) high incidence of poverty as well as low capital cost and 4 O&M contributions. • Environment Improved environment by safe disposal of faeces, however drainage at water points is inadequate. 3 Goundwater resources are generally adequate for rural water supplies. CONSISTENT • Fiduciary Legal and ethical relationships of trust between the Bank requirements and the Borrower were in the right direction during the project period. There was no conflict of interest in meeting the objectives of the project; providing access to water and sanitation facilities to intended beneficiaries. There were delays in procurement and disbursement and difficulties in managing the Special Account due to lack of skill in financial management. This resulted in delays in 3 replenishing the Special Account and payments to contractors and consultants. Despite delays, the project largely achieved its physical and financial objectives. Both the Bank and GOM met their financial obligations. Timely audits and quarterly reports were submitted to the Bank. Fiduciary requirements were generally satisfactorily met during the project. 5

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) • Post conflict and After emerging from years of civil strife, the project fragile states supported GOM’s efforts to provide basic services to rural 3 areas and to decentralize responsibility for planning and implementing basic services to district level. • Regional Integration This was not an objective of the project N/A

4. Project log frame1 VERIFIABLE MODE OF NARRATIVE DESCRIPTION ASSUMPTIONS INDICATORS VERIFICATION

1. SECTORAL GOAL

1. Ensure provision of adequate 1.1 Rural water supply 1.1 Demographic and (Goal to Super Goal) quantity and quality of water coverage to reach health statistics for and adequate sanitation 40% of the rural rural areas services. population by 2004.

2. PROJECT OBJECTIVE (Project Objectives to Goal)

2.1 To assist in providing safe 2.1 Improved water 2.1 Reports of 2.1 Sector reforms and and reliable supply in 1,640 villages construction works; investments water supply and sanitation and 2 small piped Project Completion continue. facilities to the population in schemes operating. Report; the project area. 2.2 Improved sanitation to 50% of the rural 2.2 Health statistics

population in the and reports from 2.2 Beneficiaries project areas. community practice good development officers personal hygiene and environmental sanitation. 2.3 Institutional changes are effected.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

3. PROJECT OUTPUTS By the end of the (Output to Project project: Objectives)

3.1 Sustainable water supply and 3.1 1,170 new water 3.1 Reports on each 3.1 Effective sanitation supply facilities contract and community facilities operated and constructed Borrower’s and participation. maintained by communities. Bank’s PCR 3.2 Public awareness about improved and new services 3.2 470 water supply 3.2 Supervision 3.2 Counterpart funds and hygienic practices facilities rehabilitated missions timely available. improved.

3.3 Water supply and 3.3 Increased knowledge and 3.3 600 rainwater sanitary facilities are prevention of harvesting systems 3.3 Progress reports maintained properly. HIV/AIDS and malaria. constructed

3.4 District and provincial 3.4 430 sanitation 3.4 Mid-term review authorities’ capacity to plan facilities at schools and manage water supply and and health posts sanitation program enhanced. constructed

3.5 Provincial 3.5 Spare parts availability population covered 3.5 Project monitoring by and evaluation environmental reports health education

3.6 Provincial centers 3.6 A large percentage study of target population change hygiene behavior

3.7 Improved availability of spare parts for handpumps

3.8 Provincial Centers Study 4. INPUTS/ACTIVITIES (Activity to Output)

4.1 Funding is available 4.1 Procurement of goods, works, 4.1 Implementation 4.1 Appraisal report, on time. and services for the project, period 2001-2005 loan agreement. including drilling and Tender evaluation construction contracts and reports.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) consultants Signed contracts. Progress reports. 4.2 Secondment of local staff Mid-term review 4.2 Loan effective on 4.2 Project budget Bank supervision schedule. 4.3 Execution of works UA18.63 million mission reports Project completion 4.3 Implementation report sche-dule followed

4.4 Supervision of construction 4.4 Project Implementation Manual respected

4.5 Implementation of hygiene 4.5 Tenders prepared and environmental sanitation and evaluated on program time

4.6 Commissioning projects

1 Source: Appraisal Report, September 2001

5. For each dimension of the log frame, provide a brief assessment of the extent to which the log frame achieved the following. WORKING LOG FRAME DIMENSION ASSESSMENT SCORE The causal chain is conceptually logical, a) Presents a logical causal chain however an accurate analysis of existing LOGICAL for achieving the project 3 implementation capacity and the important role development objectives of household sanitation is lacking. Objectives and outcomes are quantifiable and measu-reable in theory, but not always in b) Expresses objectives and practice. Some of the outcomes are a result of MEASURABLE outcomes in a way that is a combination of other efforts as well and 2 measurable and quantifiable disaggregation is not always possible. The project did not use data from other sources to describe the impact of project activities. A number of risks and assumptions are identified, however the time required for tendering was underestimated while the pace c) States risks and key THOROUGH of institutional changes was overestimated. 2 assumptions Mitigation measures and triggers and responsibilities for their implementation were not always adequately described.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) D. OUTPUTS AND OUTCOMES

I. ACHIEVEMENT OF OUTPUTS MAJOR ACTIVITIES Share of project costs Working Weighted Targets at Appraisal Revised Actual (as stated in Appraisal Score Score Targets1 Outputs Report) 1. 1,170 new water supply facilities 799 997 4 31.9 1.28 constructed 2. 470 water supply facilities 350 167 2 5.4 0.11 rehabilitated 3. 600 rainwater harvesting systems 25 39 2 1.2 0.02 constructed 4 2 small piped systems 4 4 3 0.2 0.01 rehabilitated 5. 430 sanitation facilities for schools 330 283 2 13.8 0.28 and health posts constructed 6. (0) Demonstration latrines 245 236 3 0.0 0.00 7. (0) Household latrines 1,600 6,200 3 0.0 0.00 8. People receiving environmental 3 6.1 0.18 Not specified 550,000 health education 9. A large percentage of target 12 0 2 0.3 0.01 population change hygiene behavior practices 10. Increased percentage of target 1 1 3 1.1 0.03 population aware how to prevent HIV/AIDS and malaria 11. Improved availability of spare 1 0 1 0.3 0.01 parts for hand pumps 12. Provincial Centers WSS Feasibility 1 1 3 3.4 1.00 Study 13. Studies for establishing two ARAs 1 1 3 4.8 0.14 14. Managerial systems/procedures 1 1 2 20.0 0.40 improved and opera-tional OVERALL OUTPUT SCORE [Score is calculated as an average of the weighted scores] 1 Targets in the Appraisal Report (2000) were revised in 2004 (ref OWAS.2/LTR/2004/06/043/ehs dated 3/8/04). 3.5 2 If there is evidence the output was achieved, a score of 1 was given. If there was no evidence that the output was achieved, a score of 0 was given.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

II. ACHIEVEMENT OF OUTCOMES OUTCOMES Working Item Expected Actual Score 1. The additional number of people with access to safe water 40% of rural 617,5001 2 supply population 2. People having access to improved latrines 50% of rural 56,4002 1 population 3. People receiving environmental health education Not specified 550,000 2 4. Target population change hygiene behavior practices Large % Not determined 1 5. Increased % of rural population know how to prevent Increased % Yes 3 HIV/AIDS and malaria 6. Improved availability of spare parts for hand pumps Availability of parts Not achieved 1 improved 7. Provincial Centers WSS Feasibility and Design Study Completed study Achieved 100% 3 8. Studies for establishing two ARAs Two ARAs Achieved 100% 3 established 9. Managerial systems/procedures improved and operational Systems operational Achieved 100% 3 OVERALL OUTCOME SCORE 2.1 [Score is calculated as an average of the working scores] 1 617,500 is equivalent to about 21% of the rural population in the two provinces according to the 1997 census. 2 56,400 is equivalent to about 1.8% of the rural population in the two provinces according to the 1997 census.

2. Additional outcomes and impacts Regarding the outcome related to poverty impact, due to its rural focus and relatively low user charges, improved water supply facilities provided by the project are accessible to the poor, the main constraint being distance travelled to and crowding at improved water points, due to the distribu-tional norm practiced by the project and the district administrations of providing “some to all” rather than more to some” implying that 100% coverage of each community was not a project target. Small piped systems may only benefit the poor if a sufficient number of public taps are provided as part of the system design. Regarding the outcome of gender-positive impact, women and girls were the main beneficiaries of the improved water supply, washing and sanitation facilities. Also, women were often prominent members of the water point committees as well as recipients of the environmental health and other training provided by the project. Project impacts on social and cultural and ethnic groups such as Muslims in coastal areas of Nampula Province, fishing communities and semi-nomadic cultivators in Niassa Province who require special and gender-sensitive approaches and specific health and hygiene messages suited to their habits and life styles were limited by the failure to identify these groups at appraisal or specifically target them for tailored interventions during project implementation. As a result, latrines built in these communities were not optimally utilized by the communities. The project helped to enhance the capacity of the private sector in the construction of water points and management of projects. 3. Risks to Sustained Achievement of Outcomes There are risks to the long-term sustainability and impact of project outcomes. The effectiveness of community-level maintenance has not yet been clearly demonstrated. As handpumps and other facilities provided by the project age, coupled with the lack of a reliable system for access to spare parts, challenges to sustainability can be expected to increase over time. District infrastructure units, artisans and water point committees will require continuous monitoring and

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) support from all levels, particularly from DPOPH-DAS at provincial level. The recent decision of the MZFO to undertake a Beneficiary Assessment and a study of decentralization at district level in the ASNANI project area can provide useful information and findings of relevance to improving the sustainability and impact of the project.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) E. PROJECT DESIGN AND READINESS FOR IMPLEMENTATION

1. State the extent to which the Bank and the Client ensured the project was commensurate with the client’s capacity to implement by designing the project appropriately and by putting in place the necessary implementation arrangements. As preparation proceeded and implementation started, the original design of the project was not fully consistent with the Client’s capacity at central and provincial levels, as well as that of the private sector who were expected to tender for and carry out studies, construction, supply critical inputs, etc. There were more than 2½ years between signing the loan agreement in December 2000 and the first disbursement in September 2003. A contributing factor to this lengthy preparation time was that the EA did not assign dedicated staff to the preparation of the project, but initially relied on part-time inputs from existing staff who had other duties. The approval of the Ministerial Diploma by GOM which was a requirement for establishing project management units and bank accounts, and mechanisms for channeling funds, appointing staff, etc. also proved to be a lengthy process. Recruiting and retaining qualified staff proved to be an important challenge for the project throughout its lifetime, but particularly at the beginning. The capacity of DNA to provide and retain qualified and experienced staff is a continuing concern for the sector. Project and TA staff were not always suitable for the tasks they were assigned and were subsequently replaced. There was also a tendency to attempt to undertake preparation and implementation activities simultaneously, and in some cases a failure to ensure that communities were ready for implementation before construction started. Project management and staff, contractors and community committees were not always adequately trained, ready and equipped to carry out their functions, resulting in much trial and error, especially in the beginning. Suitably qualified personnel were not available in the project area and it was also difficult to attract and retain them from other provinces. This situation was exacerbated by changes in key project staff as well as Bank task managers. No formal capacity, fiduciary risk or procurement assessment of the Implementing Agent (IA), DNA, provincial entities such as DPOPH or the private sector was undertaken prior to commencing the project. The length of time taken from loan effectiveness to the start of disbursement referred to above indicates that the IA was not fully prepared to implement a project of this scope and complexity. In particular, knowledge and understanding of the Bank’s procurement and contract and financial management rules and procedures was lacking, and plagued the project throughout its lifetime. The project could have benefitted from a thorough, rigorous Mid-term Review, which was planned at appraisal but not undertaken.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

PROJECT DESIGN AND READINESS FOR WORKING ASSESSMENT IMPLEMENTATION DIMENSIONS SCORE The project, with eight components covering two large provinces, was relatively complex, and therefore placed high demands on weak a) Project complexity is country capacity, including capacity of the matched with country REALISM private sector. 2 capacity and political commitment. Bank systems and procedures were not always understood or appreciated by the IA. The IA often expected more flexibility from ADB than proved to be possible. Mitigation measures for the effects of weak RISK ASSESSMENT b) Project design includes institutional, financial and contract management 2 AND MITIGATION adequate risk analysis. and private sector capacity were not adequately described or implemented during the project. c) Project procurement, Country procurement, financial management financial manage-ment, and monitoring systems were not used. GoM USE OF COUNTRY monitoring and/or other environmental impact criteria were used to 1 SYSTEMS systems are based on those classify the project. Use of country systems already in use by govern- was not a key part of the project’s approach. ment and/or other partners. WORKING SCORE For the following dimensions, provide separate working scores for Bank performance and Client Bank Client performance:

The Appraisal Document described d) Responsibilities for project implementation responsibilities, which were CLARITY implementation are clearly 2 2 accepted in principle but not always observed defined. by the IA, e.g. the role of TA. e) Necessary implementation This was not expected. Procurement documents (e.g. documents were prepared with the assistance PROCUREMENT specifications, design, of TA during implementation. 0 0 READINESS procurement documents) are ready at appraisal. f) Monitoring indicators and The MISNANI information system is in place, monitoring plan are agreed functioning and being operated by IA staff. MONITORING upon and baseline data are Comprehensive baseline reports were prepared 3 3 READINESS available or are being for all project districts. collected.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) F. IMPLEMENTATION

From the beginning, the project experienced difficulty in meeting deadlines and adhering to schedules, mainly due to limited capacity, understanding and differing interpretations of ADB rules and requirements, as well as limited experience of consultants and contractors with project requirements. Even after project closure, the client was unable to justify fully the funds in the use of the special replenishment account. The quality of consultant’s outputs and the success rate of drilling improved during the project period, even though high costs remained a concern. High costs are partially due to many service providers being from outside the project area and lack of established benchmarks and incentives for reducing the cost of services. UNICEF has reduced construction costs in their “One Million” Initiative in neighboring provinces. More interaction and exchange of experience between ASNANI and the UNICEF project, especially in 2008-09, could have provided valuable experience and lessons for ASNANI. The role of technical assistance (advisers or implementers) was an issue, particularly early in the project. The performance of technical assistance and consultants varied, but improved during the project as more experience was gained. The project was subject to usual GOM oversight, which included periodic technical and financial audits and support to supervision missions. Independent oversight of the project by DNA could have been stronger and more proactive. Joint supervision missions with the active participation of representatives from MOPH and DNA could have strengthened GOM ownership of the project. The limited time available to carry out community mobilization and hygiene education and training to support community management and maintenance groups during the last months of the project are a significant cause for concern. At project closing, which included two extensions totaling 18 months, the project had largely met its physical targets regarding water points and in satisfactory quality, small pipe systems and studies. Targets for institutional latrines and rainwater harvesting facilities were reduced in 2004 because it was concluded that the costs far outweighed the benefits. Rainwater harvesting was construction for demonstration purposes at Administrative centres and schools, and also in cases where there were no better alternatives. In Nampula, household sanitation had been promoted using the Community-led Total Sanitation (CLTS) approach with success. Management and operation and maintenance arrangements for small piped systems require further monitoring and support by DPOPH-DAS and staff from district planning and infrastructure services. At closing, the Project had achieved the following outputs: • 997 new boreholes and 2 new shallow wells • 167 water points rehabilitated • 39 rainwater harvesting systems were constructed • 4 Small Piped Systems were constructed • 283 latrines were constructed at schools and health posts • 6,436 demonstration and household latrines constructed (most with community funds) • 13,045 people trained • 550,000 people received health education (Many more over the radio) • 617,500 more people have access to safe water • 56,400 people have access to latrines

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

2. Comment on the role of other partners (e.g. donors, NGOs, contractors, etc.) At the beginning of the project, the capacity of the private sector was very limited, and was built during implementation. By the end of the project, considerable capacity had been built in the private sector for hydrogeological investigations, drilling, supervision and studies. However, costs remained high. NGOs were not used as envisaged at appraisal. Only private entities were allowed to bid for project contracts. Occasional attempts to solicit bids from NGOs were not successful or considered not to be competitive. NGOs were eligible only if they were registered as private firms. The project considered it more important to support the local private sector. The use of appropriately experienced NGOs for training, community mobilization and independent assessments should be allowed in future projects. 3. Integrity No reports or incidents of corruption or lack of integrity occurred during the project. There were a number of changes in project and TA staff in the first years of the project, mainly due to shortcomings in performance.

PROJECT IMPLEMENTATION WORKING ASSESSMENT DIMENSIONS SCORE a) Project was Tendering, financial and contract management, disbursement, completed payments and issues with GOM’s contribution, particularly on time. reimbursement of VAT, impacted the project’s progress and TIMELINESS 2 contributed to misunderstandings and tensions between the IA and ADB staff. Two extensions totaling 18 months were granted. b) Bank enforced: Environmental safeguards Environmental risks were not seen as major. Water quality in completed water points were adequately 3 monitored and applicable standards enforced. Fiduciary safeguards The fiduciary safeguards were adequately assessed during appraisal and were incorporated into the institutional set up. ADB took them seriously during implementation. Attempts to enforce fiduciary rules and procedures led to misunderstandings and conflicts with the IA. This issue could have been 3 addressed by periodic refresher training in financial BANK for existing and new project staff. Payments PERFORMANCE sometimes took longer than the originally agreed period of up to 60 days due to the time taken to meet requirements for approvals. Project covenants ADB took the project covenants seriously, and required the Client to substantially fulfill its 3 obligations before disbursement started. Bank provided quality The skill mix was largely appropriate, although more supervision in the form of social and community development expertise could skills mix provided and have benefitted supervision missions. The MZFO 2.5 practicality of solutions. provided sector and social support to supervision missions.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) Bank provided quality The quality of ADB’s supervision was generally management oversight. satisfactory, although the lack of a Mid-term Review is a missed opportunity to detect and correct implementation issues. The MZFO could have been 3 called on to provide more advice and support, particularly in procurement and contract management. c) Client complied with: Environmental safeguards Environmental safeguards such as water quality and protection against contamination were largely 3 observed, although drainage at many water points was inadequate. Fiduciary safeguards This was a contentious and persistent issue throughout the project period, due to differing 1.5 perceptions and priorities between the IA and ADB. Project covenants Project covenants were eventually fulfilled, although with considerable delay compared to appraisal estimates. The Project Implementation Manual, (PIM), issued in 2002, was mostly in English, which limited its use by 3 project and all district staff. Also, the PIM was not a CLIENT living document, as had been the intention at PERFORMANCE appraisal and was not updated to reflect changes in rules and procedures during the project period. Client was responsive to The IA’s response to findings and recommendations Bank super-vision findings was characterized by differing perceptions and and recommendations priorities. The IA often argued for a more flexible 2 interpretation of rules and procedures than proved to be possible. Client collected and used The MISNANI database provided the basis for monitoring information for monitoring and reporting, although it is not evident to decision-making. what extent the information was actively used in decision-making. Monitoring tended to focus on the delivery of physical outputs rather than qualitative 3 aspects such as the performance and outcomes of water point committees, artisans, maintenance groups, training, and sanitation and hygiene behavior change.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

G. PROJECT RATING SUMMARY

WORKING CRITERIA SUB-CRITERIA SCORE Achievement of Outputs 3.5 Achievement of Outcomes 2.1 PROJECT OUTCOME Timeliness 2.0 OVERALL PROJECT OUTCOME SCORE 2.5 Design and Readiness Project Objectives are relevant to country development priorities. 4.0 Project Objectives could in principle be achieved with the project inputs and in 2.0 the expected time frame. Project Objectives are consistent with Bank’s country program. 3.0 Project Objectives are consistent with Bank’s policies concerning: • Poverty focus (beneficiaries) 4.0 • Environment 3.0 • Fiduciary requirements 3.0 • Post-Conflict and Fragile states 3.0 • Regional Integration N/A The log frame presents a logical causal chain for achieving the project 3.0 development objectives. The log frame expresses objectives and outcomes in a way that is measurable 2.0 and quantifiable. The log frame states risks and key assumptions. 2.0 Project complexity is matched with country capacity and political commitment. 2.0 BANK Project design includes adequate risk analysis. 2.0 PERFORMANCE Project procurement, financial management, monitoring and/or other systems 3.0 are based on those already in use by government and/or other partners. Responsibilities for project implementation are clearly defined. 2.0 Necessary implementation documents (e.g. specifications, design, procurement 0 documents) are ready at apprai-sal. Monitoring indicators and monitoring plan are agreed upon, and baseline data 3.0 are available or are being collected. PROJECT DESIGN AND READINESS SCORE 2.7 Supervision Bank enforced: • Environmental safeguards 3.0 • Fiduciary safeguards 3.0 • Project covenants 3.0 Bank provided quality supervision in the form of skills mix provided and 2.5 practicality of solutions. Bank provided quality management oversight. 3.0 SUPERVISION SCORE 3.0 OVERALL BANK PERFORMANCE SCORE 2.75

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

Design and Readiness Responsibilities for project implementation are clearly defined. 2.0 Necessary implementation documents (e.g. specifications, design, procurement 0 documents) are ready at appraisal. Monitoring indicators and monitoring plan are agreed upon and baseline data 3.0 are available or are being collected. PROJECT DESIGN AND READINESS SCORE 2.5 CLIENT Implementation PERFORMANCE Client complied with: • Environmental safeguards 3.0 • Fiduciary safeguards 1.5 • Project covenants 3.0 Client was responsive to Bank supervision findings and recommendations. 2.0 Client collected and used monitoring information for decision-making. 3.0 SUPERVISION SCORE 2.5 OVERALL CLIENT PERFORMANCE SCORE 2.5

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) H. SELECTED LESSONS

Summarize key lessons suggested by the project’s outcomes Key lessons from the project are as follows: (1) In the project design, there should be a clear distinction between preparation and criteria for assessing when the IA and provincial entities are ready to start implementation. Necessary training should be provided to ensure that a thorough understanding of current Bank procurement, financial management and disbursement rules and procedures are present and practiced at all times by the IA. (2) MTRs can be a good mechanism to identify issues and remedial measures during project implementation. The absence of an MTR allowed key issues and constraints to persist and negatively affected ratings (3) Relevant DNA departments such as DAR and DES should be directly involved in planning and implementing rural water supply and sanitation projects. (4) Sustainability of completed facilities and project outcomes requires continuous follow-up and management support by the IA or other national, provincial or local agencies. (5) Changes in key project staff during the last few months of the project affected the smooth closure of the project. The above lessons and experience from ASNANI will prove useful for preparation and implementation of the new National Rural Water Supply and Sanitation Program (PRONASAR), currently being considered for possible Bank assistance. In addition, lessons learned by another closely related rural water supply and sanitation project supported by CIDA are included in their entirety in Annex 8.

The following lessons from the Mid-Term Review of the CSR for Mozambique in 2008 are also considered to be relevant to ASNANI:

LESSONS LEARNED - MID-TERM REVIEW OF CSR (2008) Lessons for the Bank Need to improve quality of the Bank interventions in terms of portfolio performance: lower average age, faster implementation period, better monitoring and more impact analysis: There is the need to reduce the most negative effect on portfolio performance: age of projects by doing efforts on completion of old projects. Poor implementation performance reflects problems during project design, execution and monitoring. Project design should be informed by a detailed baseline analysis and analytical Economic Sector Work (ESW), incorporating lessons learnt and an agreement on the best indicators for assessing progress and measuring impact, especially on poverty reduction outcomes. Need to reinforce aid coordination efforts, increasing co-financing initiatives and trying to establish a leading position on specific technical strategic areas. It is crucial to reinforce the Bank position in the PAP aid coordination framework, promoting an active participation in the PAP working groups and enhancing the Banks technical cooperation. The relocation of the country economist to MZFO as well as additional sector specialists should reinforce the Bank’s position mainly in the Economic Sector Working Group. Efforts at promoting co-financing initiatives should also be made. Government has explicitly stated that one of the weaknesses of the Bank is terms of coordination is the need to use country systems especially in terms of procurement. Need to reduce bureaucratic burden of procedures in order to improve performance, allow better coordination efforts in strategic areas and enhance flexibility to cope with emerging challenges. The Bank position is undermined by procedures that impose a bureaucratic burden on operations and reduce the capacity to react to new and unpredictable challenges.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

Lessons for Government Need for GOM to take advantage of the Bank’s priority on infrastructure to reinforce its poverty reduction impact by promoting an integrated approach in establishing development programs and priorities among different ministries and sectors. There is presently a lack of interministerial coordination and cooperation in planning and implementing programs which have poverty reduction as their development objective. Need for government to strengthen capacity building and service delivery of public service to improve efficiency of aid resources and to cope with the challenge of an increasingly complex and demanding aid framework in Mozambique. The complex aid framework that has been constructed in Mozambique in recent years represents not only a large source of resources, but also a challenge for the government to improve its administrative, technical and management capacity to assure that real impact and results are achieved. Need for government to focus on poverty reduction outcomes to guarantee that growth is pro-poor and will improve human development. Special focus should be given to the problem of the persistence of HIV/AIDS and cross- cutting issues such as gender.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

Annexes

1. Project Costs and Financing

Summary of Project Cost by Components (UA)

Components LC FC Total (UA) 1. Institutional Development 63 649,44 1 001 362,16 1 065 011,60 and Capacity Building 2 Environmental Health - 246 482,36 246 482,36 Education 3. Construction of Water 1 432 269,69 6 637 097,45 8 069 367,14 Supply and Sanitation Facilities 4. Support Commercial - - - Network Spare-parts Distribution 5. Support Monitoring and 133 562,48 315 985,93 449 548,41 Water Conservation 6. Monitoring and Evaluation, 9 982,20 144 335,68 154 317,88 Audit 7. Studies 495 093,49 1 030 705,24 1 525 798,73 8. Project Management and 144 732,17 4 639 517,45 4 784 249,62 TA Total Base Cost 2 279 289,46 14 015 486,27 16 294 775,73

Physical Contingency (10%) 227 928,95 1 401 548,63 1 629 477,57

Price Contingencies (3%) 68 378,68 420 464,59 488 843,27 Total 2 575 597,09 15 837 499,49 18 413 096,57

Financing by Sources of Funds (UA)

Sources LC FC Total %

ADF - 13 391 790,64 13 391 790,64 82,18 Grant (TAF) - 623 695,63 623 695,63 3,83 GoM 2 279 289,46 - 2 279 289,46 13,99

Total 2 279 289,46 14 015 486,27 16 294 775,73 100,00

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

2. Map

MOZAMBIQUE

INTEGRATED WATER SUPPLY AND SANITATION PROJECT FOR NIASSA AND NAMPULA

TANZANIA

CABO DELGADO NIASSA

ZAMBIA

NAMPULA TETE

ZAMBEZIA

ZIMBABWE SOFALA

MANICA

INDIAN OCEAN

INHAMBANE

GAZA

SOUTH AFRICA

MAPUTO Project sites

Maputo

050100150 Kilometers SWAZILAND 050100 150 Miles

The African Development Bank provided this map exclusively for the use of the readers of the report to which it is attached. The names used and the borders shown do not imply on the part of the Bank and its members any judgement concerning the legal status of a territory nor any approval or acceptance of these borders.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

3. Bank inputs

Team Members Name Designation During Preparation Mr. G. Giorgis Director, OCDS Mr. P.E. Njuguna Ag. Division Manager,OCDS.4 Mr. E.H.J. Schroten Sanitary Engineer, OCDS.4 Mr. D.T. Lekoetje Public Utilities Economist,OCDS.4 Mr. W. Soliman Environmentalist, OCDS.2 During Supervision Mr. E.H.J. Schroten Sanitary Engineer, OCDS.4, Task Manager Mr. Paul Dzimiri Senior Financial Analyst, Alternate Task Manager Mr. M. Assefaw Financial Analyst, OWAS.2, Task Manager Mr. Tom Mugoya Consultant Water and Sanitation Engineer Mr. Boniface Principal Water and Sanitation Engineer, OWAS.2, Task Aleobua Manager Mr. Eshetu Legesse Chief Financial Management Specialist, ORPF.2 Mr. Loxly Epic Financial Management Specialist, ORPF.2 Mr. Patrick Karani Principal Environmentalist, OWAS.2 Ms. A. Hamza Gender Specialist, OWAS.2 Mr. J. Mabombo Infrastructure Specialist, MZFO Mr. Carlos Laisse Water and Sanitation Consultant, MZFO Ms. Yolanda Socio-economist, MZFO Arcelina Ms. L. Soares Staff, MZFO Mr. A Abdula Staff, MZFO Other Mr. Sering Jallow Division Manager, OWAS.2 Ms. Veronica Country Economist Pacheco Ms. D. L. Kishosha Disbursement Officer Mr. Vasantt Jogoo Environment Officer

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

Missions Date Comment Identification June 1999 Preparation June 2000 Appraisal September 2000

Supervision May 2001 November 2001 June 2002 March-April 2003 March-April 2004

September-October2004 April-May 2005 September 2005 Desk Supervision December 2005 August-September 2006 February-March 2007 December 2007 Financial Management and March 2008 Disbursement Mission April-May 2008 September 2008 May 2009 Completion Undertaken jointly with the PCR Mission for Ntchisi and Mzimba November-December 2009 Districts Integrated Water Supply and Sanitation Project (Malawi)

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

RATINGS Preceding reports Last INDICATORS report 04.12.200 04.12.200 21.04.200 17.09.200 11.05.20 7 7 8 8 09 A. PROJECT IMPLEMENTATION Compliance with loan conditions precedent to 3 - 3 3 3 entry into force Compliance with General Conditions 3 - 3 3 3 Compliance with Other Conditions 2 - 2 2 2 B. PROCUREMENT PERFORMANCE Procuremet of Consultancy Services 1 - 2 2 2 Procurement of Goods and Works 2 - 2 3 2 C. FINANCIAL PERFORMANCE Availability of Foreign Exchange 2 - 2 3 3 Availability of Local Currency 1 - 2 2 2 Disbursement Flows 2 - 2 2 2 Cost Management 2 - 2 2 2 Performance of Co-Financiers - D. ACTIVITIES AND WORKS Adherence to implementation schedule 2 - 2 2 2 Performance of Consultants or Technical 2 - 1 2 2 Assistance Performance of Contractors 2 - 2 3 2 Performance of Project Management 2 - 2 3 2 E. IMPACT ON DEVELOPMENT Likelihood of achieving development Objectives 2 - 2 2 3 Likelihood that benefits will be realized and 2 - 2 3 3 sustained beyond the project Likely contribution of the project towards an 2 - 2 3 3 increase in living standards Current Rate of Return - - - - - F. OVERALL PROJECT ASSESMENT Current Supervision Average 2.00 - 2.06 2.50 2.38 Current Trend over time 2.24 RATINGS: 3 = Highly Satisfactory, 2 = Satisfactory, 1 = Unsatisfactory, 0 = Highly Unsatisfactory, ‘ ‘ - Non applicable STATUS Implementation Progress (IP) = 2.23 Development Objectives (DO) = 3.00

OVERALL STATUS : NON PROBLEMATIC PROJECT / NON POTENTIALY PROBLEMATIC PROJECT

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

4. Project Narrative. Describe key factors not covered in the main template that affected design and implementation of the project. Such factors, both positive and negative, could include: climate and weather, political changes, contractual or personnel matters, technical issues, procurement processes, and interactions with other partners. If any of these factors is significant enough to affect the evaluation ratings, it should be noted in the template with a reference to this annex.

1. The project contributed significantly to the achievement of the MDG targets for rural water supply and sanitation in the two provinces. The reported coverage in Niassa Province at the beginning of the project was 11% and estimated to be over 70% at the end of the project. In Nampula Province the reported coverage was 18% for rural water supply at the beginning of the project and over 30% at the end of the project. No reliable figures are available for sanitation coverage. 2. The prior conditions specified in the Appraisal Report were necessary, but not sufficient in themselves, to ensure proper implementation and sustainability. Suitably qualified project staff and TA were not always present, especially in the beginning of the project. Project manuals were not regularly updated to reflect current conditions or practices. 3. The Project adapted its approach to support the Government’s decentralization efforts and provided valuable experience in implementing rural water supply and sanitation projects in a decentralized setting. Such experience will be very useful in implementing the new National Rural Water Supply and Sanitation Program (PRONASAR). 4. The project made a significant contribution to the development of private sector capacity, particularly in the fields of hydrogeological investigations/geophysics, drilling services, works supervision, institutional and baseline studies, community mobilization and management and training in health and hygiene promotion. 5. During implementation, the project generated employment locally, mainly for unskilled labor in construction-related jobs. Additional longer-term employment was made possible for artisans and latrine builders trained by the project in latrine construction and handpump repair. Among other factors which affected implementation of the project are: 1. Lack of access to rural banking facilities in the project area meant that funds collected by communities were kept in indivi-duals’ homes and in a manner which lacked transparency and full accountability. 2. Poor road network, condition of rural roads, especially in the rainy season, and long distances, especially in Niassa Province hampered drilling operations, supervision and community mobilization, and increased project costs. 3. Among technical issues are the difficulty in costing drilling contracts due to the variable depth of the water table and yields of wells in the project area and logistics such as distance to and between drilling sites, as well as the effects weather conditions. 4. Project implementation was affected by numerous procurement and financial and contract management issues, which have been mentioned previously in this report, as well as in the Bank’s Aide Memoires and BTORs and the Borrower’s Quarterly Reports and PCR. 5. Language barrier was a challenge. The Manual for Implementation of Rural Water Supply Projects (MIPAR) approved in 2001 as a condition for the approval of the project and the Project Implementation Manual (PIM) prepared in 2002 were not regularly reviewed or updated during the project. In addition, the PIM was mostly in English, which limited its usefulness for the majority of Portuguese-speaking project staff. Similarly, most contractors had little or no knowledge of English, the medium of the contract documents. The beneficiaries did not speak Portuguese. There was no financial management manual for the project. 6. Due to its pioneering nature in many areas, piloting of such project elements as rainwater harvesting, handwashing facilities at institutions, drinking troughs for livestock before going to scale could have prevented some of these facilities from being un- or underutilized and improved the project’s efficiency and impact.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

7. The relatively small difference in capital cost contribution from users for wells and rehabilitation (1,500 MZM, approximately USD 50) compared to new boreholes (2,500 MZM or approximately USD 83) could have influenced the preference for new boreholes. 8. There was evidence in Niassa Province that the presence of a reliable water supply caused semi-nomadic people to settle near boreholes provided by the project. 9. Washing slabs were not always used, as many people preferred to wash their clothes at home. Washing slabs should only have been installed if there was a strong demand from the community, rather than as a standard design feature. 10. Delays in payment of VAT of 17% on invoices from contractors and consultants caused cash flow problems for contractors and consultants. 11. Bank guarantees were expensive, with fees up to 6% of the principal amount, and difficult if not impossible to obtain for many smaller contractors and consultants. This issue should be jointly addressed by GOM and the Bank in future programs and projects. 12. Poor performance of the TA at the beginning of the project contributed to delays and added to start-up problems. 13. Cost overruns were incurred in operating costs, which however included some expenses for the implementation of activities, such as vehicle running costs.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

Economic Analysis (ERR) and Financial Analysis Basic Assumptions for computation of Economic Net Present Value (ENPV) and Economic Internal Rate of Return (EIRR)1:

1. The life of the project is 25 years. 2. The analysis is based on constant prices. 3. The base year is 2009 4. Physical contingency of 10% and price contingency of 3% are applied on the total base cost of the project. 5. All financial costs are converted to their equivalent economic prices by using appropriate Conversion Factors (Shadow Prices) such as Standard Conversion Factor (0.85), Shadow Wage Rate (0.50) and an Economic Discount Rate of 15%. They are applied after the costs are disaggregated into foreign and local components, respectively. 6. The Operation and Maintenance cost is 3% of the total original capital outlay. 7. The exchange rate used in the analysis is 1 USD =MZM 27.00 AND 1UA = USD 1.4 8. Taxes such as duty are excluded from economic cost estimates because in economic terms, they are transfer of funds and that do not involve economic costs. 9. No replacement period is considered over the project life due to the fact that the periodic maintenance is adequate to prolong the project outputs. 10. A salvage value of 10% of the original cost is accounted as a benefit to the project at the end of the project life, which is the 25th year. 11. To estimate the volume of water production (consumption), the population served by the project is considered over the project life. 12. Using the existing minimum level of rural water consumption of 20 liters per capita per day, the annual volume of water production and direct benefits are estimated. 13. The consumers’ willingness to pay which is equal to an average of MZM 0.02/liter per day of water is considered for estimating the direct benefits (consumer surplus) of the project. 14. Education benefits that can be accrued as a result of project interventions are estimated using the following assumptions: (i) primary school enrolment rate is 80%,( ii) the dropout rate is 5%,( iii) the dropout rate is expected to decrease by 60%, and (iv) the cost per pupil is estimated to be MZM 248 per year.

15. Health benefits are calculated in terms of health cost savings. For this purpose one of the major waterborne di-seases, diarrhea is considered. The assumptions are: (i) Prevalence rate for the incidence is 100/1000, (ii) the in-cidence of dysentery will be reduced by 70% and (iii) medication cost will be MZM 22/person/year (on the basis of MZM 1/person/treatment for the pass card/registration card 2 times per year and transportation cost of MZM 10/person/trip 2 times per year).

16. The additional income that can be obtained as a result of saving in time spent collecting water is calculated based on the following assumptions: (i) average time spent fetching water was reduced from the existing 3 hours to 30 minutes per day. This indicates that there is a savings of 2.5 hours/day, equivalent to a wage rate of MZM 15.63 (MZM 6.25/hour * 2.5). This is equivalent to 31.26% of the rural daily wage rate. The average rural daily wage rate is approximately MZM 50.

1 The source of the discount rate is the Bank of Mozambique. The SCF and SWR are estimates made based upon information obtained from the Ministry of Planning and communities in the project areas

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) Economic Analysis: Computation of ENPV and EIRR

Investment Operating Total Direct Health Education Total Net Year Time Saving Cost Cost Cost Benefit Benefit Benefit Benefit Benefit 2003 1 947 349,04 58 420,47 2 005 769,51 0 0 - 0 - (2 005 769,51) 2004 32 449 885,61 973 496,57 33 423 382,18 0 0 - 0 - (33 423 382,18) 2005 69 058 189,16 2 071 745,67 71 129 934,84 1 241 000,00 639,10 5 059,20 403 971,35 1 650 669,65 (69 479 265,18) 2006 77 676 261,02 2 330 287,83 80 006 548,85 14 089 000,00 16 31,70 57 436,80 4 586 263,02 18 749 031,52 (61 257 517,32) 2007 136 344 974,07 4 090 349,22 140 435 323,30 38 544 000,00 86 856,00 157 132,80 12 546 875,00 51 334 863,80 (89 100 459,50) 2008 201 992 050,62 6 059 761,52 208 051 812,14 59 130 000,00 86 856,00 241 056,00 19 248 46,88 78 705 958,88 (129 345 853,26) 2009 197 847 277,15 5 935 418,31 203 782 695,46 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 40,87 (84 117 154,60) 2010 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 540,87 113 730 122,55

2011 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 40,87 113 730 122,55

2012 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 40,87 113 730 122,55

2013 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 40,87 113 730 122,55

2014 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 540,87 113 730 122,55

2015 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 40,87 113 730 122,55

2016 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 40,87 113 730 122,55

2017 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 540,87 113 730 122,55

2018 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 40,87 113 730 122,55

2019 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 540,87 113 730 122,55

2020 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 540,87 113 730 122,55

2021 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 540,87 113 730 122,55

2022 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 540,8 113 730 122,55

2023 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 540,87 113 730 122,55

2024 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 540,87 113 730 122,55

2025 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 540,87 113 730 122,55

2026 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 119 665 40,87 113 730 122,55

2027 5 935 418,31 5 935 418,31 89 936 000,00 86 856,00 366 643,20 29 276 041,67 191 397 139,53 185 461 721,22

ENPV at 14% MZM 47 196 074,49 DR EIRR 16,07%

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

Mozambique: Integrated Water Supply and Sanitation Project for Nampula and Niasa Provinces

Sensitivity Analysis (Economic) MZM

Net Benefit Net Benefit Net Benefit Net Benefit

Year Cost Benefit Scenario 1 Scenario 2 Scenario 3 Scenario 4 2003 2 005 769,51 - (1 805 192,56) (2 206 346,46) (2 005 769,51) (2 005 769,51) 2004 33 423 382,18 - (30 081 043,96) (36 765 720,40) (33 423 382,18) (33 423 382,18) 2005 71 129 934,84 1 650 669,65 (62 366 271,70) (76 592 258,67) (69 644 332,15) (69 314 198,22) 2006 80 006 548,85 18 749 031,52 (53 256 862,44) (69 258 172,21) (63 132 420,48) (59 382 614,17) 2007 140 435 323,30 51 334 863,80 (75 056 927,17) (103 143 991,83) (94 233 945,88) (83 966 973,12) 2008 208 051 812,14 78 705 958,88 (108 540 672,05) (150 151 034,48) (137 216 449,15) (121 475 257,38) 2009 203 782 695,46 119 665 540,87 (63 738 885,05) (104 495 424,14) (96 083 708,68) (72 150 600,51) 2010 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2011 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2012 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2013 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2014 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2015 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2016 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2017 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2018 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2019 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2020 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2021 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2022 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2023 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2024 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2025 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2026 5 935 418,31 119 665 540,87 114 323 664,38 113 136 580,72 101 763 568,47 125 696 676,64 2027 5 935 418,31 119 665 540,87 186 055 263,05 184 868 179,38 166 322 007,27 204 601 435,17 ENPV MZM 85 932 267,89 MZM 8 459 881,09 MZM 3 740 273,64 MZM 90 651 875,34

EIRR 18,69% 14,38% 14,19% 18,46%

Scenario 1: Costs decrease by 10% Scenario 3: Benefits decrease by 10%

Scenario 2: Costs increase by 10% Scenario 4: Benefits increase by 10%

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

ADF (in No. Goods and services procured Number ADF (in UA) Method USD) 36 Construction of 129 water points (final round) in 4 districts, Nampula Province - Lot A 910,283 650,202 NCB 1

37 Construction of 129 water points (Final Round) in 4 dis-tricts, Nampula Province - Lot B 1 689,133 492,238 NCB 38 Water Points - supply and construction 60 in Cuamba District 1 241,867 172,762 NCB 39 Construction of 80 water points in Cuamba (Phase 2) 1 289,700 206,928 NCB 40 Construction of 85 water points in Lago and Lichinga 1 243,132 173,666 NCB 41 Construction of 55 water points in Majune, Muembe and Ngauma 1 142,534 101,810 NCB 42 Construction of 70 water points in Mecanhelas and Metarica 1 247,969 177,121 NCB 43 Construction of 70 water points in Madimba 1 236,331 168,808 NCB 44 Construction of 25 water points in Sanga and Mavago 1 161,913 115,652 NCB 45 Construction of 25 water points in Marrupa and Mecula 1 224,997 160,712 NCB 46 Construction of 30 water points in Maua and Nipepe 1 188,711 134,793 NCB 47 Design and construction of small piped system in Muembe 1 140,746 100,533 NCB 48 Latrines and other sanitation systems and rainwater harvesting construction 1 86,078 61,484 NCB 49 Latrines and other sanitation systems and rainwater harvesting construction 1 125,392 89,566 NCB 50 Final Round 100 water point construction - Lot A 1 601,468 429,620 NCB 51 Final Round 100 water point construction - Lot B 1 370,652 264,752 NCB 52 ASNANI documentary film 1 7,692 5,495 NCB 53 Procurement of Contractors for Works 29 9,254,406 6,610,290 NCB 54 Services for project launch 1 46,134 32,953 NCB-SL 55 Audit of ASNANI Project 1 100,715 71,939 NCB-SL 56 Pilot Baseline Study in Mogovolas 1 91,243 65,173 NCB-SL 57 Second Baseline Study Lot A 1 59,436 42,455 NCB-SL 58 Second Baseline Study Lot B 1 79,504 56,789 NCB-SL 59 Final Baseline Studies -Lot A 1 68,316 48,797 NCB-SL 60 Final Baseline Studies - Lot B 1 65,961 47,115 NCB-SL 61 Final Baseline Studies - Lot C 1 50,753 36,252 NCB-SL 62 Community Mobilization in 4 districts - Lot A 1 132,938 94,955 NCB-SL

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) 63 Community Mobilization in 4 districts - Lot B 1 131,672 94,051 NCB-SL 64 Community Mobilization in 4 districts - Lot C 1 183,530 131,093 NCB-SL 65 Community Mobilization in 4 districts - Lot D 1 183,530 131,093 NCB-SL 66 Construction Supervision 197 water points in four districts - Lot A 1 62,075 44,339 NCB-SL 67 Supervision of construction of 197 water points in four districts - Lot B 1 113,926 81,375 NCB-SL 68 Supervision of construction of 197 water points in four dis-tricts - Lot C 1 67,135 47,954 NCB-SL 69 Supervision over Construction of 197 water points in four districts - Lot D 97,780 69,843 NCB-SL 1 70 Community mobilization in 12 districts - 396 water points (4 contracts 4 0 0 NCB-SL

ADF (in No. Goods and services procured Number ADF (in UA) Method USD) 71 Supervision of construction of 396 water points in 12 districts - Lot A 1 121,756 86,969 NCB-SL

73 Supervision of construction of 396 Water Points in 12 Districts - Lot B 1 121,756 86,969 NCB-SL

73 Supervision of construction of 396 Water Points in 12 Districts - Lot C 1 121,756 86,969 NCB-SL

74 Supervision of construction of 396 Water Points in 12 Districts - Lot D 1 121,756 86,969 NCB-SL

75 Community Awareness: Sanitation, Health, HIV/AIDS, Follow-up - Lot A 1 200,000 142,857 NCB-SL 76 Community Awareness: Sanitation, Health, HIV/AIDS, Follow-up - Lot B 1 250,000 178,571 NCB-SL 77 Database/MIS Development and Implementation 1 270,586 193,276 NCB-SL 78 Small Piped Systems - Community Mobilization and Super-vision 1 73,315 52,368 NCB-SL 79 Study and Implementation of Spare Part Network - 0 0 NCB-SL 80 Pilot Baseline Studies with Community Work in Cuamba 1 115,821 82,730 NCB-SL 81 Second Baseline Study - Lot A 1 36,221 25,872 NCB-SL 82 Second Baseline Study - Lot B 1 28,645 20,460 NCB-SL 83 Water Points – Community Mobilization in 8 districts 1 347,641 248,315 NCB-SL 84 Supervision over construction of 80 Water Points in Cuamba - Phase 2. (20 supervised in-house) 1 35,598 25,427 NCB-SL 85 Third Niassa Baseline Study (3 districts) Lot A 1 25,401 18,144 NCB-SL

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) 86 Third Niassa Baseline Study (3 districts) Lot B 1 25,401 18,144 NCB-SL 87 Supervision of construction of water points in Lago and Lichinga 1 36,026 25,733 NCB-SL 88 Supervision of construction of water points in Majune, Muembe and Ngauma 1 40,919 29,228 NCB-SL

89 Supervision of construction of water points in Mecanhelas and Metarica 1 42,910 30,650 NCB-SL

90 Supervision over construction of water points in Madimba 1 34,487 24,634 NCB-SL 91 Supervision over construction of water points in Sanga and Mavago 1 29,186 20,847 NCB-SL 92 Supervision over construction of water points in Marrupa, Mecula, Maua and Nipepe 1 30,896 22,068 NCB-SL

93 Water Points – Community mobilization 6 districts 1 156,205 111,575 NCB-SL 94 Supervision and management model small piped system in Muembe District 90,975 64,982 NCB-SL 1 95 Supervision of Final Round Water Point Construction - 75,728 54,091 NCB-SL 96 Sanitation and Health Education and Supervision. - 0 0 NCB-SL 97 Spare Parts Commercialization (Cancelled) - 0 0 NCB-SL 98 Supervision - Final Round 100 water point construction - 29,986 21,419 NCB-SL 99 Procurement of consultants 43 3,997,619 2,855,442 NCB-SL 100 Community Training in Nampula and Niassa 1 115,376 82,411 Single Source 101 Procurement of motorcycles 1 102,564 73,260 UN Webbuy 102 Other procurement 2 217,940 155,671 Other Total 105 19,474,814 13,910,582

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI)

5. Client’s PCR and/or Comments on draft Bank PCR

See Client’s draft PCR, December 2009 (separate file).

6. Co-financers’ Comments; Report on Stakeholder workshop (if any)

Not applicable

7. PDARI / CIDA - KEY SUCCESS FACTORS AND LESSONS LEARNED

Contribution of Gender Equality to Overall Development Results Gender awareness at the district and community levels yielded tangible results, as women’s participation increased across the board, both in terms of percentages as well as in the types of roles being fulfilled by women. A report on Gender Equality Achievements by the Programme was prepared by the IRWDP’s Gender Specialist in March 2007. According to the report, the main lessons learned are as follows: 1. With the use of gender mainstreaming and gender-sensitive project approaches, communities have responded with a significant level of women’s participation in various aspects of water and sanitation management. 2. Communities are willing and able to elect water committees that are gender balanced. Over time women are proving to be more stable and committed members than men and to hold their positions longer. The proportion of women in the committees continues to increase slightly with the departure of men over time. Currently women form just over half of the total members of water committees. 3. Traditional gender roles continue to exert an influence on the membership in water committee groups, with a slightly higher percentage of men in Management and Operation & Maintenance, and, more pronounced, women predominating in hygiene and Sanitation. 4. Women are present and trained within the O&M groups, but their performance is not well known. 5. In contrast to their lower representation in the HHS Group, men have volunteered almost equally with women as health activists through community based organizations. 6. The model home approach is an important way of involving men in hygiene and sanitation. 7. Women occupy positions of leadership in Water Committees, but this also follows gender patterns, with currently only 22% as president but 42% as treasurer. Most communities have accepted women as decision-makers in the committees, although there are groups that continue to view women’s role as one of assisting men. 8. The effective participation of women in decision making processes is just as important as the actual number of women in decision-making positions. 9. With the water source closer, other family members are tending to leave the water fetching to the women. Although women are still saving time, the woman’s role of water carrier is being reinforced. This preserves the traditional gender division of labour and decreases the sharing of a major household burden. 10. With time saving and more water available, some women are engaging in productive activities and increasing resources available to the household. The IRWDP baseline indicates that a majority of women would likely have control over these new resources. 11. Communities do recognize women’s increased role in water and sanitation management. Whether this will contribute to women’s increased roles and influence in other areas of the community remains a question.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) 12. Capacity building in gender equality at the district level needs to be more heavily promoted as it is not usually seen as a priority amongst all the other district activities. 13. Project stakeholders concur that local level leaders can have considerable influence in the communities about women’s and men’s participation in water and sanitation management, and can reinforce messages from the promoters and animators. To provide coverage of this training to all local leaders would require a substantial number of training sessions with skilled trainers. 14. Community members become very engaged in exploring issues of gender equality using two participatory tools, one of which was developed by the IRWDP. However, it is difficult to try to measure the effectiveness or direct impact of these exercises on such a complex and ingrained issue as gender relations. 15. If Gender Equality expertise is not available locally, on-the-job training and mentoring/coaching from outside sources can strengthen available human resources to fill the required role. Other Lessons Learned In addition to the lessons learned summarized above relating to gender issues, other specific lessons learned during the Programme, and which have helped to improve Programme quality and efficiency, include the following points (generated in collaboration with DPOPHI and the districts): Provincial and District Capacity Development 1. It is essential to reinforce institutional capacity (DPOPHI and District Administrations) to ensure their ability to assume their respective roles. The Programme played a significant role in this development process, reflected in the fact that the Districts are prepared to assume their roles. 2. Coordination between the different organizations active in the water and sanitation sector in Mozambique is essential to solve common problems in the water and sanitation sector, and a specific forum for this is the best solution. The GAS meeting provided such a forum. 3. Funds specifically allocated to water and sanitation at the district level allow for more efficient use of funds and better planning. 4. For the monitoring system, it is more efficient to start the process at the base (communities) and go up, than to do the reverse. 5. The decentralization process has resulted in contract management at the district level which is more flexible and beneficial than if managed at the provincial level since the district staff members are nearer to the implementers and beneficiaries and therefore better understand their needs. 6. Training community leaders and other influential local people contributes to an increased level of monitoring and assessment at the district level. The Provincial and District Governments do not have the capacity to monitor the large areas in their jurisdictions, therefore a monitoring system that makes use of the local leaders living at community level proved to be an efficient method of collecting the required information.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) Role of the Private Sector 1. One perceived weakness of the private sector is monitoring capacity. Specific training to hygiene promoters is required to develop skills on indicator monitoring and reporting of data. 2. Strengthening the private sector (capacity building) is best done in phases. The volume of information provided to hygiene promoters was often overwhelming and the concepts (PHAST, DRA, etc.) were new to them. Promoters should be given training that allows a concept to be put into practice before progressing to the next one. This will allow for more effective training programs. 3. Training/awareness building of the private sector in HIV/AIDS is a valuable Programme input. 4. Use of local mechanics to repair major breakdowns is essential in the process of sustainability during the life of the pumps. 5. The concept of using only private (profit-oriented) companies needs to be revised as it is not sustainable in the long term. Under Mozambican labour law, these companies must maintain permanent staff, and therefore are not well-suited to community capacity building because the work is carried out a few days a month, and not continuously. It is not cost- effective for companies to hire permanent staff for this type of work. 6. The supply chain for spare parts can only be efficient and operational in all parts of the country if there is a strong commitment and involvement of the government.

Technical Issues 1. Geophysical studies should be done prior to the final selection of all communities to ensure the existence of water at a level that can be lifted by hand pumps. 2. Effective communication with communities is important to avoid creating false hope before the technical feasibility of constructing a water point has been evaluated. Even conducting a geophysical study can create a false sense of hope within a community and the challenges must be explained to the community from the onset. 3. It is necessary to study alternative technologies for rural water supply so as to cope with constraints related to water quality and very deep water tables in certain regions. 4. The use of solar systems in very deep boreholes can be considered as an appropriate technology in some cases; however these can only be installed where the number of users makes them cost effective (at least 150 families). 5. Work Supervisors and Inspectors of water point installations must have strong knowledge of hand pumps and associated equipment to assess quality of materials, equipment and installation methods. 6. It would be best if the laboratory responsible for the inspection report for hand pumps for the Government produced a report with specifications of all components, thus following contractual clauses and producing one report per pump. 7. The low number of qualified contractors negatively affects execution of water supply projects in the province. 8. Collaboration with other organizations working in the sector could improve project execution through exchange of project experiences, lessons learned and best practices.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) Community Sustainability 1. Involving local leaders in raising DRA awareness and community mobilization is essential. 2. Didactic material must be translated into local languages to ensure understanding, but the technical descriptions of pump parts should remain in Portuguese to avoid misunderstandings between communities and retailers. 3. As a rough guide to overall community interest/commitment, at least 70% of the beneficiaries should contribute to the initial capital cost. In order to improve community ownership of the water point, and therefore its sustainability, one or two major donors for the community contribution should be avoided. 4. Exchange of experiences should be encouraged at the community level, since those conducted to date have proven very effective in transmitting energy and commitment. 5. Regular monitoring of the water points and sustainable maintenance should be the task of the District Administrations, in liaison with local leaders and community water committees. 6. The use of CBOs and religious groups for the promotion of positive messages in sanitation and hygiene was effective. 7. Use of CBOs in the implementation of community awareness activities reduces implementation cost and improves local capacity. 8. Minimization of the time periods between each phase of the project cycle is essential to maintain the motivation of the water committees and optimize their capacity development. 9. Local media should be used as a channel to promote the activities and messages of the Programme. 10. Creation of the water and sanitation demonstration centres in each district is an essential tool for promotion of water and sanitation and increases demand for sanitation services (slabs and latrines). 11. Introduction of community washing basins near the water points improves HSS conditions within communities. 12. To improve health and hygiene habits in the communities, other technologies should be considered, such as handwashing and urinal facilities. 13. Use of local promoters/activists helps the dissemination of messages at community level. Programme Cycle, Procurement and Quality of Work 1. The number of water points available per project should be clearly announced to the beneficiary population to avoid unduly raising expectations and drawing political criticism. 2. District Government and local leaders should be involved in promoting PNA/DRA and project criteria. 3. Programme response to community expressions of interest should proceed as rapidly as possible to maintain momentum and maximize effectiveness of Programme inputs. 4. All works should be allocated in small lots to accelerate the implementation and minimize gaps between initial mobilization, training and actual water system construction. 5. Rigid monitoring and supervision of community development work and drilling activity is essential to ensure quality control. 6. The positive demand demonstrated by communities is partly due to better knowledge of the NWP. 7. Training in hand pump repair for local mechanics and merchants who sell hand pumps is essential for the success of the supply chain model. 8. Selection of contractors based only on lowest price can be a constraint to the quality of the work. 9. Technical specifications of the quality of materials in components of hand pumps need to be included in the Requests for Proposals to avoid misunderstandings and the use of low quality materials.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) 10. It is important to have a systematic monitoring system to capture the impact of the Programme and to maintain a flow of information. 11. Capacity building/contracting of local CBOs strengthens the capacity of the Province/District. 12. All water projects should have a component of capacity building of local CBOs to help ensure the establishment of local capacity in the district.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) 9. Supporting Documents

1. Aide Memoires, African Development Bank, Abidjan and Tunis, 2000-2009. 2. Correspondence, ADB and ASNANI PCU, 2003-09. 3. Country Strategy Paper (RBCSP) for Mozambique (ADB/BD/WP/2006/47), April 2006. 4. Briefing Document for Project Completion Mission, ASNANI PCU, November 2009. 5. District Baseline Studies, Nampula and Niassa Provinces, various consultants, 2005-09. 6. Feasibility Studies for Water Supply and Sanitation in Four Provincial Towns, Burnside International, 2008. 7. Final Completion Report, Rural Water Development Programme, Inhambane, Mozambique, April 1, 2002 – January 31, 2008, Canadian International Development Agency, by Cowater International Inc., March 2008 8. MISNANI printouts, PMU in Nampula and Niassa, November 2009. 9. Mozambique – Country Strategy Paper 2006-2009, Country Operations Department, North, East and South Region – ADF, April 2006. 10. Mozambique – Country Strategy Paper 2006-2009, Mid-Term Review Report, ORSB, ADB, August 2008 11. Project Appraisal Report, African Development Bank, September 2000. 12. Project Brief, Integrated Water Supply and Sanitation Project, ADB, n.d. 13. Project Completion Report (draft), PCU, ASNANI, Maputo, December 2009. 14. Quarterly Reports 1-24, 2003-09, PCU, ASNANI, National Directorate of Water, Maputo. 15. Studies for the Establishment of ARA Norte and ARA Centro Norte, ASNANI, 2008.

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) 10. Abbreviations

ADB – African Development Bank ADF – African Development Fund ARA – Regional Water Management Agency ASNANI - Integrated Water Supply and Sanitation Project for Nampula and Niassa Provinces BTOR – Back-to-Office Report CLTS – Community-led Total Sanitation CSP – Country Strategy Paper CSR – Country Strategy Review DAR – Department of Rural Water Supply (DNA) DAS – Provincial Department of Water and Sanitation DES – Department of Sanitation (DNA) DNA - National Directorate of Water DPOPH – Provincial Directorate of Public Works and Housing DRA – Demand-responsive Approach EIRR – Economic Internal Rate of Return ENPV – Economic Net Present Value FC – Foreign Costs GIS – Geographic Information System GOM – Government of Mozambique IA – Implementing Agency ICB – International Competitive Bidding IEC – Information, Education and Communication LC – Local costs MDG – Millennium Development Goal MIS – Management Information System MOPH - Ministry of Public Works and Housing MTR – Mid-term Review MZFO – Mozambique Field Office (ADB) MZM – Mozambican Meticias N/A – Not applicable NCB – National Competitive Building NGO – Non-government Organization PAP – Program Aid Partners PCR – Project Completion Report PCU – Project Coordination Unit PIM – Project Implementation Manual PMU – Provincial Project Management Unit PRONASAR – National Rural Water Supply and Sanitation Program 40

Project Completion Report (PCR) Mozambique – Integrated Water Supply and Sanitation Project for Niassa and Nampula (ASNANI) SL – Local Shopping TA – Technical Assistance UA – Units of Account USD – United States Dollar VAT – Value Added Tax