Closed Compact Report: Mozambique Compact | March 2015

Conditions Precedent

To encourage desired investment outcomes under the compact, MCC and the Government of Mozambique agreed that the following conditions precedent (CP) would be met before disbursing project funds.

Key Conditions Precedent
Key Compact Component(s) Major Condition Precedent or Policy Reform Required Rating
Water and Sanitation Project

Increased Authority of Central Regulatory Agency

To better ensure sustainability and consistency within the WSS sector, the regulatory agency will have broader oversight to include smaller cities and towns. As a CP, the Minster of Public Works and Housing signed a letter of sector policy which officially expanded the mandate of the regulatory agency.

Met on Time

Land Tenure Services Project

Land Use Legislation

Land use rights are currently not easily transferrable, hindering considerable small and medium-scale development, business creation, etc.  The Government will adopt revised legislation and administrative procedures that allow land use rights to be transferred without undue delay or risk.

Not Met

Water and Sanitation Project

Legal establishment of Provincial Water Boards for AIAS

Administração de Infraestruturas de Água e Saneamento (AIAS), a new institution established to manage water supply and sanitation assets in Mozambican cities with populations between 50,000 and 150,000.  

Met on Time

Rehabilitation/Construction of Roads Project

Road Maintenance

The Government of Mozambique has 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 eight 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 ten years after the initial paved roads maintenance program.

Met on Time