Report No. 47876-MZ Mozambique Municipal Development in Mozambique Lessons from the First Decade Public Disclosure AuthorizedPublic Disclosure Authorized (In Two Volumes) Volume II : Full Report May 2009 Urban and Water, AFTUW Country Department, AFCS2 Africa Region Public Disclosure AuthorizedPublic Disclosure Authorized Public Disclosure AuthorizedPublic Disclosure Authorized Document of the World Bank Public Disclosure AuthorizedPublic Disclosure Authorized Table of Contents Acronyms ……………………………………………………………………………….7 Executive Summary .........................................................................................................12 Chapter 1 An Introduction to Urbanization and Municipal Development in Mozambique .................................................................................................22 1.1 Objective ........................................................................................................22 1.2 “Urban” and “Municipal” in Mozambique ....................................................22 1.3 A Brief Socio-Economic Profile of Municipalities in Mozambique .............26 1.4 Rationale and Key Questions of the Study ....................................................28 1.5 Structure of the Study ....................................................................................30 1.6 Outline of the Study .......................................................................................32 Annex 1.2 Population by Municipality in Mozambique. 1997 and 2007 estimates ...........39 Chapter 2 The Legal and Institutional Context for Urban and Municipal Development .................................................................................................41 2.1 The Legal and Institutional Context for Urban Governance in Mozambique41 2.2 The Legal and Policy Framework for Organization of Urban Services ........48 2.3 Analysis and Recommendations for Improving the Performance of Urban Governance and Management Institutions in Mozambique ..........................66 Chapter 3 Urban Governance and Planning ...............................................................79 3.1 Introduction: Objective and Methodology .....................................................79 3.2 Main Findings and Challenges .......................................................................80 3.3 Recommendations ..........................................................................................90 Chapter 4 Municipal Public Finances ........................................................................107 4.1 Introduction ..................................................................................................107 4.2 Main Findings ..............................................................................................107 4.3 Main Challenges ..........................................................................................124 4.4 Recommendations ........................................................................................128 Chapter 5 Urban Poverty and Rural-Urban Linkages .............................................136 5.1 Introduction: Objective and Methodology ...................................................136 5.2 Main Findings ..............................................................................................138 5.3 Main Challenges ..........................................................................................158 5.4 Recommendations ........................................................................................161 Chapter 6 Urban Land Management .........................................................................165 6.1 Introduction ..................................................................................................165 6.2 Main Findings ..............................................................................................165 6.3 Main Challenges ..........................................................................................176 3 6.4 Recommendations ........................................................................................186 Chapter 7 Water Supply and Sanitation in Urban Areas ........................................192 7.1 Objective and Methodology .........................................................................192 7.2 Some Basic Definitions................................................................................192 7.3 Technology Choice ......................................................................................193 7.4 Current and Future Access to Service Delivery ...........................................194 7.5 Legal Framework .........................................................................................196 7.6 Existing Institutional Framework — Water supply .....................................198 7.7 Existing Institutional Framework — Sanitation ..........................................204 7.8 New Institutional Developments ..................................................................206 7.9 Financial Assessment ...................................................................................210 7.10 Key Challenges ............................................................................................220 7.11 Current Operations .......................................................................................228 7.12 Conclusion ...................................................................................................231 Chapter 8 Solid Waste Management ..........................................................................235 8.1 Introduction, Concepts and Methodology....................................................235 8.2 Main Findings and Key Challenges .............................................................238 8.3 Recommendations ........................................................................................250 8.4 Best Practices ...............................................................................................254 Chapter 9 Lessons Learned .........................................................................................262 9.1 Introduction: Objective and Methodology ...................................................262 9.2 Main Findings ..............................................................................................264 9.3 Key Challenges ............................................................................................289 9.4 Recommendations ........................................................................................296 Annex 9.1 Key lessons learned from municipal experiences in the last 10 years — Quality of practices by sectors and sub-sectors considered ......................................301 Annex 9.2 Key lessons learned from municipal experiences in the last 10 years — Good practices .......................................................................................................304 Chapter 10 Conclusions and Guidelines for Action ....................................................308 10.1 An Urbanizing Country................................................................................308 10.2 The Role of Municipalities in Good Governance and Local Development .308 10.3 The Underlying Constraints Facing Municipalities .....................................311 10.4 Integrated Service Delivery .........................................................................334 10.5 Proposed Roles and Responsibilities: A Way Forward ...............................340 Annex 10.1 Role of actors: The underlying municipal system ......................................343 Annex 10.2 Role of actors: Integrated Service Delivery ...............................................350 Bibliography ...................................................................................................................352 List of Authors................................................................................................................361 4 List of Tables Table 1.1 Population Estimates by Area of Residence, 1997 and 2007 ........................24 Table A1.1 Classification of cities based on MAE’s criteria............................................35 Table A1.2 Classification of Urban Areas Based on INE’s Criteria ................................37 Table 4.1 Evolution of Municipal Transfers as a Proportion of Fiscal and Total Revenues (Thousands of Mt, Nominal Terms). .................................115 Table 4.2 Horizontal Allocation of Transfers ..............................................................117 Table 4.3 Budget Composition, All Municipalities, 2007–08 .....................................121 Table 5.1 Population and Poverty in Selected Municipalities and their Provinces .....139 Table 6.1 Access to Land in Four Bairros of Maputo ..................................................171 Table 6.2 Access to Land in Maputo and Matola ........................................................171 Table 6.3 Access to Land In Urban Mozambique .......................................................172 Table 6.4 Innovative Projects from 2000 onwards ......................................................175 Table 6.5 Status of Structure Planning.........................................................................183 Table 7.1 Summary of Current Access to Services (2006) ..........................................195 Table 7.2 Division of Population Served by Different Operator Types ......................200 Table