Mozambique Compact

Staking a claim in Mozambique's future

MCC is helping thousands of Mozambicans secure a title and access to their land, allowing for greater investment potential and helping reduce land disputes. MCC is also helping improve the country's land policies and upgrade land information systems.

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Policies Matter: A Legacy of Reform Creates a Future of Opportunity for Mozambique's Water and Sanitation Sector

Access to water and sanitation play an essential role in economic development, which is why Mozambique worked with MCC and other donors to implement critical reforms in the country's water sector and to invest in the water supply and sanitation infrastructure.

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Clean Water Transforms Mozambican Community

Men and women throughout Mecupes describe the arrival of clean water as a monumental event. Before the arrival of Mecupes' water point, the search for water from nearby rivers took hours—much as it does across rural Mozambique.

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A walking campaign makes a fashion statement

MCA-Mozambique is giving out cloth as part of the Land Tenure Project to encourage people to register their parcels of land. These are being used for wraps, skirts and headdresses.

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A safe crossing

Photojournalist Jake Lyell and I were in Mozambique last week to speak with project beneficiaries and record the story of MCC’s impact from their perspective.

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In June 2007, the Millennium Challenge Corporation signed a five-year, $506.9 million compact with the Republic of Mozambique designed to increase the productive capacity of the population in the Northern districts, with the intended impact of reducing the poverty rate, increasing household income and reducing chronic malnutrition in the targeted districts. The four projects are designed to foster investment and increase economic opportunities for Mozambicans. The compact in Mozambique entered into force (EIF) in September 2008, formally initiating the five-year timeline for project implementation.

  • Signed:
    July 13, 2007
  • Entry into Force:
    September 22, 2008
  • Completed:
    September 22, 2013

Financial data as of .

This project aims to control the spread of Coconut Lethal Yellowing Disease (CLYD), to, encourage diversification into other cash-crop production, and eliminate biological and technical barriers that hinder economic growth among farms. Activities include:

  • Tree removal and replacement;
  • Assist farmers in adopting new cropping systems and developing alternative sources of cash income during the time required for new coconut trees to reach productive age; and
  • Provide technical support to introduce better practices aimed at increasing crop yields.

The objective of the Land Tenure Services Project is to establish more efficient and secure access to land by improving the policy framework; upgrading land information systems and services; helping beneficiaries meet immediate needs for registered land rights; and better access to land for investment. This project is comprised of three mutually reinforcing activity areas:

  • Policy Monitoring Pillar: Improve the policy environment by addressing implementation problems with the existing land law, conducting regulatory reviews to improve upon it, and supporting training for predictable, speedy resolution of disputes;
  • Capacity Building Pillar: Build the institutional capacity to implement policies and to provide quality public land-related services by investing in human and information resources; and
  • Site-specific Pillar: Facilitate access to land use by helping individuals and businesses with clear information on land rights and access and with registering their grants-of-land use.

This project aims to improve access to markets, resources, and services; reduce transport costs for the private sector to facilitate investment and commercial traffic; expand connectivity across the Northern region and the southern half of the country; and increase public transport access for individuals to take advantage of job and other economic opportunities.

  • Rehabilitate key segments of the National Route 1 which forms the backbone of country’s transportation network.

This project aims to increase access to a safe, reliable water supply and sanitation services thereby increasing productivity and reducing water-borne diseases - the leading cause of death in children under five.

  • Provide water supply and sanitation services in six cities in the provinces of Zambézia, Nampula and Cabo Delgado;
  • Provide water supply in two mid-sized towns in Nampula and Cabo Delgado provinces;
  • Provide rural water supply services covering water points in the Nampula and Cabo Delgado provinces; and
  • Provide capacity building of local institutions and policy development.
  • May 6, 2004

    Compact Eligiblity Attained

    Mozambique obtained eligibility to receive MCC funding.

  • December 31, 2006

    World Bank Strategic Partnership Formed

    A collaborative multi-donor investment program was established with the World Bank to support the Government of Mozambique's long-term financial goals for the urban and town water sector.

  • July 12, 2007

    Compact Signed

    A $506.9 million Compact agreement was signed between the Millennium Challenge Corporation and the Government of Mozambique.
  • August 27, 2008

    Gender Integration Plan approved

    MCC approves the Gender Integration Plan, meeting the CP requiring that this strategy be approved prior to EIF
  • September 21, 2008

    Entry-into-Force (EIF)

    The Mozambique Compact entered into force, signaling the beginning of the five-year implementation phase.
  • February 28, 2009

    Water and Sanitation Infrastructure Management Unit (AIAS) Created

    With joint support from the World Bank and MCC, the Infrastructure Authority of Water and Sanitation (AIAS) was created to manage private opverators to conduct operations and maintenance of water supply and sanitation assets in smaller cities and towns.

  • March 31, 2009

    CRA Authority Increased

    The Minister of Public Works and Housing signed a letter which officially expanded the mandate of the independent Water Regulatory Commission (CRA) to have broader oversight over smaller cities and towns in order to better ensure sustainability and regulatory consistency within the sector.

  • September 20, 2009

    Farmer Income Support Project (FISP) Service Provider contract with ACDI/VOCA signed

    The main service provider contract for the FISP was signed and work begins.
  • January 7, 2010

    National Paved Roads Maintenance Program Prepared

    The Government of Mozambique prepared a paved road maintenance program that includes a periodic maintenance for the entire paved roads network. The program includes, but is not limited to the following items: a rolling planning period of 8 years; provisions for annual updating of the program based upon additions to the paved road network; a detailed listing of all paved roads subject to periodic maintenance by year; a funding plan that includes 100% of routine and periodic maintenance works such that those works will be funded in increasing amounts to 100% by user fees as of 10 years after the initial paved roads maintenance program.
  • December 31, 2010

    Roads Project Re-Scoped

    Due to cost increases, the Roads Project was re-scoped to invest in two roads representing a total of 252 km instead of four road segments representing 491 km.
  • February 28, 2011

    Water Supply and Sanitation Project Re-Scoped

    The Water Supply and Sanitation Project was re-scoped due to financing constraints, resulting in investment in three, instead of six water supply and two, instead of six, sanitation activities.
  • March 11, 2011

    Land Tenure Regularization Activities Begin

    The Land Tenure Project 's urban and rural land tenure regularization activities in 4 provinces and eight municipalities of northern Mozambique began with outreach in Nampula. This effort marks the first systematic and large-scale land regularization and titling program in Mozambique.
  • March 22, 2011

    Land Consultative Forum Meets

    The multi-stakeholder Land Consultative Forum, authorized by the Council of Ministers and comprised of government and civil society representatives, held its first meeting to discuss important issues impacting land policy and to provide the government with recommendations for modifications to current land policies. Periodic meetings would follow over the life of the Compact.
  • March 28, 2011

    Environmental permits received

    MCA received all environmental licenses/permits from MICOA for the roads projects, meeting the CP requiring that MCA-Mozambique obtain and have on file all required environmental permits
  • May 24, 2011

    Nacala Dam contract signed

    The contract for Nacala Dam is signed, marking the first major works contract under the Compact's WSS Project.
  • May 31, 2011

    Improvement of Trafficking in Persons Ranking

    Mozambique is a source, transit, and, to a lesser extent, destination country for men, women, and children subjected to forced labor and sex trafficking. The use of forced child laborers is common in agriculture, including on tobacco farms, and in commercial activities in rural areas of the country, often with the complicity of family members. The Government of Mozambique does not fully comply with the minimum standards for the elimination of trafficking; however, it is making significant efforts to do so. In June 2011, the U.S. Department of State upgraded Mozambique's Trafficking in Persons rank from Tier 2 Watch List to Tier 2.
  • June 28, 2011

    Rio Ligonha-Nampula Road contract signed

    The contract for the 103 km Rio Ligonha-Nampula Road is signed, marking the first major works contract under the Compact's Roads Project.
  • June 28, 2011

    Namialo - Mecutuchi Bridge Road contract signed

    The contract is signed for works on the 75 km road between Namialo and the Mecutuchi Bridge in Nampula province.
  • June 28, 2011

    Mecutuchi Bridge - Rio Lurio Road contract signed

    The contract is signed for works on the 74.7 km road between the Mecutuchi Bridge and the Rio Lurio in Nampula province.
  • July 6, 2011

    All Roads Project resettlement action plans approved

    MCC approved the RAP for Nampula Rio Ligonha, the final RAP to be approved under the roads project
  • August 28, 2011

    Nampula Water Supply contract signed.

    The contract for the Nampula Water Supply project is signed.
  • August 31, 2011

    Legal Establishment of Provincial Water Boards for AIAS

    Provincal Water Boards (PWB) created to ensure demand-responsive service solutions and improve voice/accountability for local stakeholders
  • September 27, 2011

    Quelimane Drainage contract signed.

    The contract for the Quelimane Drainage project is signed.
  • September 29, 2011

    Nacala Water Supply contract signed.

    The contract for the Nacala Water Supply project is signed.
  • September 29, 2011

    Nampula Drainage contract signed.

    The contract for the Nampula Drainage project is signed, marking the final major works contract signed under the Compact.
  • November 28, 2011

    All WSS Project resettlement action plans approved

    MCC approved the RAP for Nampula Drainage, the final RAP to be approved under the WSS project
  • February 26, 2012

    Environmental permits received

    MCA received the environmental licenses/permits for Nampula Drainage from MICOA, marking the final permit received for the WSS projects and meeting the CP requiring that MCA-Mozambique obtain and have on file all required environmental permits
  • May 19, 2013

    Taking Over Certificate issued for the Nacala Dam

    The Taking Over Certificate was issued for the Nacala Dam, marking the first major works complete under the WSS Project.
  • June 29, 2013

    Farmer Income Support Project (FISP) field activities end

    ACDI/VOCA field staff end operations. The main office in Quelimane remained open through the end of the Compact, assisting with the performance evaluation and insuring a successful hand-over of key deliverables and equipment to the local authorities.
  • July 14, 2013

    600 Rural Water Points completed

    The Compact target of 600 Rural Water Points constructed was achieved. This target was later surpassed.
  • July 22, 2013

    Targets for Land Use Title Issuance Met

    Compact targets for issuance of 140,000 urban land use titles (DUATs) and for 6,237 rural DUATs were met, with the land tenure security documents in the hands of beneficiaries. The Land Project later exceeded these targets. By August 18, in urban areas, 46% of DUATs were issued to women or as joint titles to husbands and wives. In rural areas, 54% of DUATs were issued to women or as joint titles.

  • August 30, 2013

    LIMS System Intalled and Functioning in Northern Provinces

    The new Land Information Management System (LIMS) is installed and functioning at DNTF Headquarters, in the four nothern provinces, and in 8 northern municipalitie. The system is expected to reduce time and cost of land-related transactions and provide better information for land management.
  • September 17, 2013

    Taking Over Certificate issued for Quelimane Drainage

    Quelimane Drainage works certified as complete.
  • September 19, 2013

    FISP SP contract with ACDI/VOCA ends

    Service provider for FISP comes to an end.
  • September 21, 2013

    Nationwide LIMS System Expansion Completed

    The expansion of the LIMS system to the remaining 6 provinces is completed, causing the MCC-funded LIMS system to cover all rural lands throughout Mozambique.
  • September 21, 2013

    Compact End Date

    The Mozambique Compact closes out.