Mozambique Urban Water Security Project (P178653) Program for Results (PforR) Environmental and Social Systems Assessment (ESSA) Report March 2023 DRAFT FINAL REV. 00 Prepared by the World Bank Table of Contents EXECUTIVE SUMMARY ....................................................................................................................................... 1 1 INTRODUCTION ......................................................................................................................................... 1 1.1 Background ........................................................................................................................................ 1 1.2 ESSA Process and Methodology ........................................................................................................ 3 1.2.1 ESSA Process .............................................................................................................................. 3 1.2.2 ESSA Methodology .................................................................................................................... 3 2 PROGRAM DESCRIPTION ........................................................................................................................... 5 2.1 Project Development Objectives and Result Areas ........................................................................... 5 2.2 Result Areas (RAs).............................................................................................................................. 6 2.3 Details of Infrastructure Projects ...................................................................................................... 8 2.3.1 Incomati Pipe Bridge.................................................................................................................. 8 2.3.2 Umbeluzi Pipe Bridge, Maputo .................................................................................................. 8 2.3.3 Wellfields, Main Lines, and Distribution Centres (refer to mapping and satellite images in Annexure 3-7 to Annexure 3-17) ............................................................................................................... 8 2.3.4 Sabié Water Treatment Plant Extension (refer to mapping and satellite images in Annexure 3- 18 and Annexure 3-19) .............................................................................................................................. 9 2.3.5 PSSAs along the Corumana-Machava Pipeline ........................................................................ 10 2.3.6 Non-Revenue Water Reduction (refer to photographs in Annexure 3-20) ............................. 10 2.4 Preliminary Screening of Result Areas............................................................................................. 11 3 EXPECTED PROGRAMME ENVIRONMENTAL AND SOCIAL EFFECTS ........................................................ 12 3.1 Programme Environmental Effects ................................................................................................. 12 3.1.1 Potential Environmental Benefits............................................................................................ 12 3.1.2 Potential Adverse Environmental Risks and Impacts .............................................................. 13 3.2 Potential Social Benefits, Risks, and Impacts .................................................................................. 16 3.2.1 Potential Social Benefits .......................................................................................................... 16 3.2.2 Potential Adverse Social Risks and Impacts............................................................................. 17 4 RELEVANT LEGAL AND INSTITUTIONAL FRAMEWORK ............................................................................ 21 4.1 Legal Framework Applicable to the Programme ............................................................................. 21 4.1.1 Environment ............................................................................................................................ 21 4.1.2 Social ........................................................................................................................................ 24 4.2 Relevant Institutional Framework for the Programme ................................................................... 26 4.2.1 Overview .................................................................................................................................. 26 4.2.2 Organisation and Responsibility of Key Institutions involved in the PforR ............................. 28 4.2.3 Summary of Performance Constraints .................................................................................... 32 5 ASSESSMENT OF THE BORROWER SYSTEM AGAINST THE CORE PRINCIPLES ......................................... 34 5.1 Core Principle 1: General Principle of Environmental and Social Management ............................. 34 5.2 Core Principle 2: Natural Habitats and Physical Cultural Resources ............................................... 36 5.3 Core Principle 3: Public and Worker Safety ..................................................................................... 37 i 5.4 Core Principle 4: Land Acquisition and Loss of Access to Natural Resources ................................. 38 5.5 Core Principle 5: Indigenous Peoples and Vulnerable Groups ........................................................ 39 5.6 Core Principle 6: Social Conflict ....................................................................................................... 42 6 CONSULTATIONS AND DISCLOSURE ........................................................................................................ 43 7 INPUTS TO THE PROGRAM ACTION PLAN ............................................................................................... 43 8 REFERENCES............................................................................................................................................. 46 ANNEXURES ..................................................................................................................................................... 47 LIST OF ANNEXURES Annexure 1: Summary of Key Informant Interviews Annexure 2: Proposed Result Areas of the PforR Program Annexure 3: Maps and Photographs Annexure 4: Preliminary Screening of PforR Result Areas Annexure 5: Relevant Mozambique Legislation and Policy Annexure 6: Consultation LIST OF TABLES Table 1: Disbursement linked indicators per result area. ................................................................................. 2 Table 2: Typology for civil work to be done under the PforR program. ............................................................ 5 Table 3: Threatened fish species potentially occurring in Mozambique’s southern coastal barrier lakes (Source: iBAT). ................................................................................................................................................. 15 Table 4: Contribution to the program action plan. ......................................................................................... 43 LIST OF FIGURES Figure 1: Theory of Change – expected outcomes resulting from the PforR activities. .................................... 6 Figure 2: Schematic of the aquifers feeding the Mozambique coastal barrier lakes and wetlands. .............. 16 Figure 3: Water supply expansion areas in the Greater Maputo region. ........................................................ 20 Figure 4: Institutional roles and responsibilities in the urban water supply and sanitation sector. ............... 28 Figure 5: Women in management positions in the main institutions responsible for the PforR (in percentage). ......................................................................................................................................................................... 40 ii LIST OF ACRONYMS AFORAMO Association of Water Providers of Mozambique (Associação dos Fornecedores de �gua de Moçambique) AIAS Water and Sanitation Infrastructures Administration (Administração de Infra-estruturas de �gua e Saneamento) ARA-Sul South Regional Water Administration (Administração Regional de �guas do Sul) ARMM Maputo Metropolitan Area Water Company (�guas da Região Metropolitana de Maputo) ARS South Region Water Company (�guas da Região Sul) AURA Water Regulatory Authority (Autoridade Reguladora de �gua), former CRA CPF Country Partnership Framework CRA Water Regulatory Council (Conselho de Regulação de �guas), now AURA DMF Delegated Management Framework DNAAS National Directorate for Water Supply and Sanitation (Direcção Nacional de Abastecimento de �gua e Saneamento) DNGRH National Directorate for Water Resources Management (Direcção Nacional de Gestão de Recursos Hídricos) DPDTA Provincial Directorate of Territorial Development and Environment (Direcção Provincial do Desenvolvimento Territorial e Ambiente) ESSA Environmental and Social System Assessment FIPAG Water Supply Asset Holding and Investment Fund (Fundo de Investimento e Património do Abastecimento de �gua) FM Financial Management GBV Gender-based Violence GDP Gross Domestic Product GIIP Good International Industrial Practice GMMA Greater Maputo Metropolitan Area GMWSS Greater Maputo Water Supply System GoM Government of Mozambique GRM Grievance Redress Mechanism GRS Bank’s Grievance Redress Service HC Household Connection HDI Human Development Index IDA International Development Association IFR Interim Financial Report IPF Investment Project Financing IVA Independent Verification Agent MISAU Ministry of Health (Ministério da Saúde) MOPHRH Ministry of Public Works, Housing and Water Resources MTA Ministry of Land and Environment (Ministério da Terra e Ambiente) OHS Occupational Health and Safety PIAP Performance Improvement Action Plan PAIRP Accelerated and Integrated Program for Losses Reduction iii PBF Performance-Based Financing PDO Project Development Objective PforR Program for Results PIS National Integrated Sanitation Program PQG Government 5-Year Plan (Plano Quinquenal do Governo) PWP Private Water Provider RA Result Area RF Result Framework SDG Sustainable Development Goals SEA Sexual Exploration and Abuse SH Sexual Harassment SPA Provincial Environmental Service (Serviço Provincial do Ambiente) UNICEF United Nations Children's Fund VSD Variable speed drive WASH Water Sanitation Hygiene WB World Bank WHO World Health Organization WSP Water and Sanitation Program WSS Water Supply and Sanitation iv EXECUTIVE SUMMARY Introduction The Government of Mozambique (GoM) is committed to increasing investments to secure water to meet increasing urban demand, expand treatment and distribution capacity, promote efficiency in service delivery and foster sustainability, with the aim of delivering safely managed water to all, as defined in the 2016 Water Policy, the National Water Resources Management Plan and the Action Plan for the Implementation of the Sustainable Development Goals (SDGs 2015-2030). After several projects have been implemented in urban water sector in Mozambique, with World Bank (WB) funding, there is now a strong strategic rationale for WB to continue its intervention with a focus on performance improvement, which led to the preparation of this program as a Program for Results (PforR). The Project Development Objective (PDO), defined in the Bank’s Activity Initiation Summary (P178653), is to strengthen urban water services and institutions for sustainable and climate resilient service delivery. The International Development Association (IDA) has committed US$250 million to the project. The environmental and social (E&S) management of the PforR activities will be undertaken under existing E&S systems, both at national level and at the level of implementing agencies. In accordance with the World Bank’s Policy/Directive “Program-for-Results Financing� (PforR) the World Bank is being undertaken an Environmental and Social System Assessment (ESSA) of the proposed Program. The overarching objective of the ESSA is to ensure that the risks and impacts of the Program activities are identified and mitigated, and to strengthen systems and build capacity to deliver the PforR in a sustainable manner. Where the implementing agency does not meet the World Bank's requirements, such as lack of regulatory authority or organisational capacity to effectively manage environmental or social risks, complementary actions are proposed to strengthen the management system as well as additional measures to improve program performance. The ESSA is carried out following the Bank’s ESSA Guidance Note for assessment of alignment with six core principles: 1) General principle of environmental and social management; 2) Natural Habitats and Physical Cultural Resources; 3) Public and Worker Safety; 4) Land Acquisition and Loss of Access to Natural Resources, 5) Indigenous Peoples and Vulnerable Groups and 6) Social Conflict. The methodology comprised interviews with key informants (DNGRH, DNAAS, ARA-Sul, FIPAG, AdRMM, AdRS, AURA, AFORAMO), preliminary screening; description of program environmental and social effects and assessment of borrower capacity to manage environmental and social risks. Program Description The project development objective is to increase access to improved water supply services; and improve service delivery capacity in selected cities. The project investments will target the Southern Region of Mozambique, covering three of the country's provinces most affected by water scarcity and droughts, Maputo, Gaza and Inhambane, and the Greater Maputo Metropolitan Region (GMMR). The project is a Program for Results (PforR), structured in three result areas (RAs): The Program’s three result areas (RAs) are: (i) RA 1. Improving the enabling environment for private sector participation; (ii) RA 2. Resilient and sustainable service delivery (access); and (iii) RA 3. Improvement of performance and efficiency of services. Annexure 2 provides a detailed Program description. In addition, the Program includes a cross-cutting area aiming at human capital strengthening. The scope of each result area is described as follows: 1 RA 1. Improving the enabling environment for private sector participation RA1 will support a number of specific reform actions under a broader sector reform effort led by the GoM to achieve universal and equitable access to safe and affordable drinking water for with private sector participation. This RA will be divided into three sub-result areas, specifically: RA1.1—Support for the implementation of the second generation of the Delegated Management Framework (DMF) for water supply systems, including the envisaged engagement of the private sector in the four regional water supply companies (commercial societies) created in May 2021, with the possible acquisition of up to 49 percent of their shares or other viable model of private sector participation. This result area will support FIPAG in managing the process of reforming the urban water supply sector, including strengthening it to be an institution focused on investment and asset management, migrating from its previous focus on operations that transition to the regional companies. RA1.2—Improvement of policies and regulatory environment for private water providers (PWPs) that will also support the development of the legal framework for the integration of PWP services (technical standards and bulk water supply models), including the licensing and monitoring of their water quality and services. RA1.3—Strengthening the regulatory role to promote efficiency and inclusion in the provision of services by extending them to the poorest segments of the population and reducing the risk of investing in the sector with economic regulations that guarantee tariffs that make it possible to fully cover operating costs, fulfilment of debt service, and a return on private investment. RA 2. Resilient and sustainable service delivery (access) RA2 will support a combination of interventions from source to tap to strengthen the resilience and sustainability of urban water supply services. This includes improving the management of challenging hydrological environments to secure water in quantity and quality in the source, downstream investment to upgrade and extend water supply infrastructure to better cope with extreme climatic events, and extended improved services to an increased segment of the population. RA2 is structured in three sub-result areas, specifically: RA2.1—Expansion of access to water supply that includes investments for the expansion of the water treatment and transport capacity, and downstream investments to expand the distribution network to extend services. Investments will benefit the Greater Maputo Region (covering Maputo and Matola cities, Boane, Marracuene, and Moamba districts), and three cities from the Southern Region (Xai-Xai, Chibuto, and Inhambane) affected by recurrent droughts. The proposed interventions include an additional volume of treated water of 85,000 m3/day, 170 km of network, 55,120 new connections, and an increase in service hours in all systems to be intervened. The expansion of water supply infrastructure will be implemented both by the Regional Operating Companies (ROCs) (Maputo Metropolitan Area Water Company (AdRMM) and South Region Water Company (AdRS), and the PWP. RA2.2—Improvement of the quality of services provided by PWPs through grants for upgrading water supply infrastructure from PWPs to comply with the technical standards, and to enable them to distribute the bulk water that will received from the utilities. RA2.3—Strengthening of the South Region Regional Waters Administration (ARA-Sul) to Secure Water Availability in Quality and Quantity, providing strategic support to ARA-Sul to fulfil its mandate, covering investments that will contribute to the enhancement of water quality, assurance of water availability to meet the urban demand, licensing of water users, strengthening of its financial sustainability, capacity building, and institutional development support. RA 3. Improvement of performance and efficiency of services RA3 will support the improvement of performance and efficiency of services provided by AdRMM in Greater Maputo and AdRS in Southern cities. AdRMM and AdRS will develop Performance Improvement Action Plans (PIAP), including annual targets for three sub-result areas, specifically: 2 RA3.1—non-revenue water reduction that includes investments to reduce both physical and commercial losses, management technologies, and capacity-building programs. The NRW reduction program is expected to be implemented by AdRMM and AdRS as part of the PIAP (option 1), benefiting from support (technical, expertise, financial) provided by the private operators after the signature of a public-private partnership (PPP) contract. In the case of a delayed engagement of a private operator, a performance-based contract (PBC) for NRW reduction will be implemented. RA3.2—Energy efficiency that includes investments in comprehensive energy audits to validate proposed interventions already identified by utility-led assessments and identify investments with quick and high returns, between (i) improved pump systems design, (ii) requalification of equipment and hydraulics installation, including replacement of old and inefficient pumps and installation of variable speed drives, (iii) redesign of transformers and update of contracted power, (iv) investments in solar systems, and (v) training and capacity building on energy efficiency. RA3.3—Capacity building and institutional development of water utilities, AdRMM and AdRS, supporting the implementation of the plans derived from the Utilities of the Future assessment, including improving operational, commercial, financial, human resources, communication practices, women empowerment, construction and rehabilitation of office facilities, and their equipping. Preliminary environmental and social (E&S) screening conducted by the Bank’s team indicated that the overall E&S risk classification of the proposed activities to be supported under this PfoR will range from low to moderate. None of the proposed RAs are likely to result in high environmental or social risk, assuming good international industrial practice (GIIP) for those RAs involving civil works, repair and maintenance. Many of the supporting RAs are designed to improve institutional performance and will have positive environmental and social impacts, subject to appropriate institutional capacity to design and implement the RA. 3 Potential Environmental Effects of the Program Environmental benefits: i) More efficient use of water as a scarce resource, ii) Reduced risk of salinisation of aquifers due to over-pumping, iii) improved surface and groundwater quality iv) Improved climate resilience, v) Improved management of instream flow requirements. Adverse environmental risks and impacts: i) Health and safety risks during construction works, ii) Pollution caused by construction works, iii) Risks to biodiversity at river crossings of pipe bridges, iv) Risks to biodiversity related to the Xai-Xai borehole fields, pipeline, distribution centres and network construction, and other civil works, v) Risks to biodiversity related to the Inhambane borehole fields, surface abstraction, main lines and networks construction, and other civil works, vi) Risks to biodiversity related to the Phase 2 expansion of the Sabié Water Treatment Plant, four pumping stations and associated infrastructure, vii) Palaeontological/cultural heritage risks from construction excavations. Potential Social Effects of the Program Social benefits: i) Health benefits for current system beneficiaries and new consumers covered by the system expansion, including vulnerable groups, ii) Improved quality of life, especially for women, due to increased coverage of access to safe drinking water, iii) Improved consumer protection and conflict resolution due to strengthened AURA, iv) Improved resilience of communities to climate risks, v) Employment opportunities for local population, vi) Human capital development, vii) Empowerment of women. Adverse social risks and impacts: i) Risk of vulnerable groups being excluded from project benefits due to lack of ability to pay, ii) Community safety risks associated with construction works, iii) Risk of non-compliance with legal requirements for working conditions, iv) Risk of GBV/SEA/SH incidents, v) Permanent and/or temporary physical and/or economic displacement, vi) Risk of adverse impacts on cultural heritage sites (including sacred sites, cemeteries and graves and archaeological heritage), vii) Risk of exacerbating conflict between FIPAG and PWP. Relevant Legal Framework Environmental • The principle of sustainable management of natural resources is embedded in Mozambique's policy and legal instruments. Mozambique has a comprehensive environmental policy and legal framework that addresses environmental assessment, environmental quality, water resources management, biodiversity, climate change, disaster management and occupational health and safety. The country has adhered to several international conventions and protocols for the protection of the environment, and as a result continues to improve the legislation on many sustainable development issues. • The Ministry of Land and Environment (MTA) is the Government institution responsible for ensuring the preservation and responsible use of natural resources including land, the coordination of environmental activities and environmental licensing. The Provincial Directorates of Land and Environment and in some cases District Services for Infrastructures and Planning are the local representatives of MTA. • The 1997 Environmental Law (Law no 20/97) sets the environmental foundations for the policy and institutional framework for environmental management in Mozambique. The Law establishes the scope, institutions, and appropriate management tools to deal with environmental management issues. • The Environmental Impact Assessment (EIA) Process is regulated by Decree No. 54/2015 of 31 December, which decentralised the decision-making levels in the EIA process, transferring decision-making powers from the national level to the provincial directorates, which are the entry points for development project applications (Instruction of the Process). Thus, four categories of activities are established, namely: - Category A+. For projects with likely significant environmental and social impacts where decision- making is reserved for the central level, and where a full environmental and social impact assessment (ESIA) is required to be undertaken and supervised by Independent Specialists Reviewers with verifiable experience; - Category A - For projects with likely significant impacts where decision-making is reserved for the central level, in these instances a full ESIA is required; 4 - Category B - For projects with impacts considered less significant or which require less complex mitigation measures decisions are made at provincial level, for instance, when a simplified ESIA is required; - Category C - Is for small projects that may not require an ESIA but must follow the regulations for environmental impact assessment. For these projects, decisions are also made at provincial level. • The EIA Regulation requires EIAs for i) Water pipelines longer than 10 km with a diameter of 1 m or more (Category A); ii) Exploitation and use of groundwater where abstraction is greater than 500 m 3/hr (Category A); iii) Water supply and sewage systems, pipelines, treatment plants and disposal and waste systems (Category B). There is a strategic and legal framework for the management of surface and groundwater. • The National Strategy for the Management of Water Resources acknowledges the need to improve the implementation of a portfolio of priority project and water resource management plans, including the assessment and monitoring of water resources, watershed management plans, disaster risk analysis and management, international river management and the consolidation of administrative functions under the Regional Water Administrations. While some of these strategic objectives have been achieved, there remain significant capacity constraints at an institutional level. • Policy and regulatory instruments for biodiversity conservation and the sustainable management of living natural resources have been significantly strengthened over the past 5 years, although there remain weaknesses where these resources (including wetlands) are outside of areas that are recognised conservation priorities. • Provision to ensure the safety, hygiene, and health of workers in the operation of public water systems are legally established. Social • The principle of equity, gender equality and social protection is embedded in Mozambican Constitution, policies and legal instruments, such as the Mozambican Constitution, Gender Policy and Strategy for Implementation and the Family Law. • There are relevant legal provisions for the protection of vulnerable groups, such as children, person with disability or chronic illness and elderly. The social protection is legally based on the principles of universality, equality, solidarity, and decentralisation. The Basic Social Protection includes direct grant programs, support by social action services and productive social action program, although its level of coverage is still very low compared to the needs. • Universal and equitable access to safe drinking water for all is a goal for 2030, established in the Water Policy and the Water Sector Action Plan for the Implementation of the Sustainable Development Goals 2015 – 2030. The Water Tariff Policy adopts the equity principle and establishes a tariff structure including a first tier with a fixed value, considered as a social tariff, aiming to guarantee a basic water supply to the poorest families. • Gender-based violence and domestic violence are legally criminalised, although they are still often culturally accepted. There are no specific legal provisions on sexual harassment, other than what is established in the Labour Law, which specifies that employees in the workplace who perform acts that violate the dignity of a woman worker should be subject to disciplinary proceedings. • The Labour Law defines a set of working conditions to protect workers. • Resettlement and compensation due to physical or economic displacement are legally regulated, requiring the preparation of a Resettlement Plan. This regulation is currently under review which is expected to bring it fully into line with international standards. • Mozambican cultural heritage is legally protected by the Cultural Heritage Law, although there is no capacity for verification of compliance with the law. • The Water Policy promotes the participation of private sector in the supply of water to the population. In peri-urban areas and expansion areas where the public service. The lack of capacity of the public service to cover new areas of residential expansion led to the development of private providers who began to play an important social role. The Regulation of the Licensing of Drinking Water Supply by Private Providers (Decree 51/2015) establishes the licensing process (by the municipality or district 5 administration), detailing the responsibilities of public entities (DNASS, ARA, AIAS, FIPAG and AURA), licensing requirements, PWP’s rights and duties and three alternative arrangements for areas where public services expansion overlap PWP areas. Institutional Framework The figure below summarises the linkages between institutions responsible for the management of water supply in Mozambique’s water sector. The institutional arrangements for the provision of water and sanitation services in Mozambique are diverse and fragmented, presently consisting of multiple government agencies, donors, civil society (international and local organisations), and the private sector. However, there is a clear distinction between roles of public and private entities, namely between those responsible for defining the policy and legal framework, planning, and operating public supply systems, and regulating and supervising water supply. The existing constraints are essentially related to the lack of institutional capacity, which includes the need to reinforce quality management systems (including environmental and social management systems), reinforce human resources and capacity building. There is also a lack of coordination between public institutions and municipalities in relation to water supply investment plans. In the relatively recent institutional arrangement of environmental and social management at the provincial level, there is still some institutional conflict, leading to duplication of functions or gaps. Here, too, institutional incapacity is evident, due in large part to a lack of trained human resources. Assessment of the Borrower System Against the Core Principles Core Principle 1: General principle of environmental and social management - Program E&S management systems are designed to (a) promote E&S sustainability in the Program design; (b) avoid, minimise, or mitigate adverse impacts; and (c) promote informed decision-making relating to a Program’s E&S effects For the project activities involving the physical development of infrastructure (mainly RA2), E&S control is carried out through Mozambique's national environmental policy and existing regulatory systems which are adequate to manage the environmental effects of the PforR program, under environmental licensing from the MTA. 6 FIPAG, which will be responsible for the implementation of the main civil works financed by PforR, has already demonstrated capacity in environmental and social management following national and Bank requirements, has E&S management tools and is undertaking an organisational restructuring aimed at establishing an E&S unit and the expansion of the existing GRM. It has, however, weaknesses in its capacity to manage social issues. AdRMM, AdRS and ARA-Sul will implement activities involving small physical works, and all lack E&S capacity, which will need to be strengthened, particularly in AdRMM and AdRS who have an extensive interface with the public in carrying out the PforR and other activities. In the case of ARA-Sul, the limited E&S capacity is likely to result in weaknesses in the preparation of ToRs for studies related to surface and groundwater management, which should include E&S requirements following good international industrial practice (GIIP). AURA and DNAAS will develop guidelines for public and private providers, respectively, that should integrate E&S requirements. Core Principle 2: Natural Habitats and Physical Cultural Resources - Program E&S management systems are designed to avoid, minimise, or mitigate adverse impacts on natural habitats and physical cultural resources resulting from the Program. Program activities that involve the significant conversion or degradation of critical natural habitats or critical physical cultural heritage are not eligible for PforR financing. The initial screening of the Program indicates that no critical habitat or critical physical cultural resources are likely to be directly or indirectly affected. In the activities envisaged in RA2 the risks to natural ecosystems and physical cultural resources will generally be low, and well within FIPAG's ability to manage effectively. Only the risk related to the exploitation of the Marien Ngoubi borehole field in Xai-Xai, which may affect water levels in a large nearby wetland known as Lake Longue, with potential adverse effects on natural habitats, is of specific concern. Specialist studies will need to be carried out to assess the potential impact of groundwater abstraction from this wellfield, as part of the environmental assessment process required by national legislation. All result areas include activities that have the potential for long-term ecological benefits and improved climate resilience as a result of improved water resource management and increased water use efficiency. Core Principle 3: Public and Worker Safety - Program E&S management systems are designed to protect public and worker safety against the potential risks associated with (a) the construction and/or operation of facilities or other operational practices under the Program; (b) exposure to toxic chemicals, hazardous wastes, and otherwise dangerous materials under the Program; and (c) reconstruction or rehabilitation of infrastructure located in areas prone to natural hazards. FIPAG will be responsible for all of the major construction works proposed in the PforR program. Overall, FIPAG is well positioned to manage OHS and community health and safety issues that will arise under the Program, based on the E&S instruments in place and past experience. Therefore, the capacity at FIPAG to implement the requirements of the environmental and social management system (ESMS) and audit the contractor’s performance is adequate with regard to most aspects of OHS, although a social specialist is required to manage community health and safety issues. For the smaller construction contracts involving network development, replacement, and maintenance, AdRMM and AdRS will be the responsible institutions. These institutions’ environmental and social management systems are weakly developed at present, and need strengthening even for the relatively minor occupational health and safety and community health and safety risks that their activities entail. ARA-Sul has responsibility for managing the water quality and safety of its main reservoirs, and of ensuring the ecological health of the river systems downstream of the impoundments. RA3.4 is intended to strengthen ARA-Sul’s capability to provide these services and includes the development of plans for reservoir 7 management, operation, environmental safety and ecological management, and internal and external emergencies. Some plans are already in place, such as the emergency plan developed for Corumana Dam during the recent civil works under the National Water Resources Development (Corumana)1 and an operating procedure to manage dam releases in an ecologically sustainable manner, but the maintenance and implementation of these (and other) plans will require additional organisational capacity. Provision for this must be made through the training and human resources development and talent recruitment programs included in the PforR. AURA will develop technical guides on public service requirements for water supply and sanitation while DNAAS will develop Technical Standards for PWP systems, both shall include E&S provisions aiming public and worker safety. Core Principle 4: Land Acquisition and loss of access to natural resources - Program E&S systems manage land acquisition and loss of access to natural resources in a way that avoids or minimises displacement, and assists affected people in improving, or at minimum restoring, their livelihoods and living standards. The activities envisaged in this PforR will not involve land acquisition and/or resettlement of a scale or nature that would have significant adverse impacts on affected people, or the use of force eviction. Among the activities proposed for the PforR, the main pipelines in Xai-Xai and Inhambane (in RA 2) are those with the highest risk of needing economic, or even physical, displacement. These activities will be under the responsibility of FIPAG, which has already demonstrated experience in implementing resettlement following national legislation and even WB requirements, although the absence of a social specialist in the E&S team has been identified as a weakness. AdRMM and AdRS may also have activities that require some occasional displacement. AdRS is following FIPAG procedures in this regard, while AdRMM has only been using local authority mediation, requiring the preparation of a Resettlement Policy Framework. Core Principle 5: Indigenous Peoples and Vulnerable Groups - Program E&S systems give due consideration to the cultural appropriateness of, and equitable access to, program benefits, giving special attention to rights and interests of Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities and to the needs or concerns of vulnerable groups There is a risk that the most vulnerable families are not covered by the public service because they cannot pay for the installation and consumption services. FIPAG/AdRMM/AdRS have mechanisms to support these families, such as subsidising the installation of the meter for the yard tap and the application of the social tariff (fixed monthly value up to 5 m3 of consumption). The social tariff is based only on the volume of consumption, which does not necessarily cover all the most vulnerable families, especially in cases of large families. Additional criteria should be considered for the application of the social tariff, such as the cases of the beneficiaries of Basic Social Protection program, already validated as vulnerable families by the social protection authority. In the framework for this PforR, AURA will review and develop criteria for the definition of socio-economically fairer and more sustainable rates and tariffs, which may contribute to improve the equity of the public service. In AdRMM there are some initiatives that contribute to the integration of vulnerable groups, such as the existence of the consumption analyst, who establishes a direct channel between the company and households, and the Communities' Project Cabinet that develops initiatives in the communities to improve services, such as the pilot project for the installation of pre-paid systems. In general, the participation of women in the management of the implementing agencies is low, with the exception of AURA (40%). The Women Empowerment Programs to be implemented in ARA-Sul, AdRMM and 1 Financed by the World Bank (P107350). 8 AdRS will contribute to better gender equity. Capacity building and talent recruitment programs to be undertaken will promote the participation of women. The Program also includes the preparation of a Gender Strategy for ARA-Sul, although considering that MOPHRH is currently preparing a Gender Strategy for the sector, it would be better to consider the preparation of a specific Gender Action Plan for ARA-Sul, in line with the MOPHRH’ strategy. The preparation of this action plan should include a stakeholder engagement process, involving among others Women Empowerment NGOs and the women committees already established in water resources management. During the implementation of the Program there will be a risk of GBV/EAS/SH associated with construction activities carried out by FIPAG, but also with AdRMM and AdRS operation and maintenance activities, involving direct contact with local communities, especially when these are poor, more vulnerable communities. FIPAG already has in place some procedures to manage this risk, although strengthening of its internal capacity is required to deal with GBV/EAS/SH allegations. In all the institutions, the implementation of awareness campaigns for workers on GBV/EAS/SH and signature of Codes of Conduct by all workers, with specific provisions on GBV/EAS/SH, will be required. Core Principle 6: Social Conflict - Program E&S systems avoids exacerbating social conflict, especially in fragile states, post-conflict areas, or areas subject to territorial disputes. There is a risk of exacerbation of conflict between FIPAG and PWP where service areas overlap, which could result in impacts on the communities (if for instance PWP decides to shut down the water distribution, as threatened in the past) - and consequently in reputational risks for the Bank. The legal framework promotes complementarity between public and private service and clearly defines the responsibilities among involved public entities in the PWP licensing process as well as PWP’s rights and duties. However, there appear to be deficiencies in the implementation of the Regulation of the Licensing of Drinking Water Supply by Private Providers, particularly regarding the exchange of information between FIPAG and the licensing authorities, in respect of FIPAG expansion plans, and limits on areas served by PWP. Municipalities have weaknesses in delimiting PWP service areas, which has contributed to conflicts between PWP and challenges in managing conflicts with the public provider. The PWP complain about the lengthy licensing process, which contributes to the existence of illegal PWP. AURA has been playing the role of mediator of the conflict, as provided for in its duties. However, the lack of financial and human resources has been a constraint in the performance of this role. The Memorandum of Understanding (MoU) signed between the MOPHRH and AFORAMO2, in December 2021 was an important step in the conflict resolution, although the slow implementation of the agreed measures and the lack of strong ongoing engagement is resulting in a lack of trust between the parties involved. This PforR includes activities to strengthen and regulate the PWP performance as well as to improve PWP integration. A specific PWP integration study is planned, as well as the establishment of technical standards and a contract model for bulk water selling, development of mediation tools for potential conflicts and relationship between public and private operators and allocation of grants to support PWP for their integration and improvement of services and water quality. Operationalising the bulk water supply model (with conditions acceptable to PWPs) will make it possible to integrate PWP systems, as they will receive treated water from regional companies and keep the markup on the downstream sale to their current and additional customers, prior to the expansion of the utilities network into areas where the small providers are operating. These activities will contribute to reduce the risk, although in addition the preparation of a strong and comprehensive stakeholder engagement plan is recommended, as well as limiting new expansions of the 2 AFORAMO - Association of Water Providers of Mozambique. 9 public distribution network to areas where PWP are not operating, such as in areas with brackish groundwater. Consultation and Disclosure During the preparation of this ESSA internal meetings were held with the implement agencies and other stakeholders such as the National Directorate for Water Resources Management (DNGRH) of the Ministry of Public Works, Housing and Water Resource Management (MOPHRH) and Association of Water Providers of Mozambique (AFORAMO), which is one of the largest PWP associations. A consultation meeting was held on February 7 in Maputo, with possibility of virtual connection. Invitation letters with attached ESSA Executive Summary (in Portuguese) and a link to the draft ESSA were sent to a total of 54 stakeholders, including non-governmental organizations, development funding institutions, water sector entities. The meeting was also adverted in the newspaper with links to access the documents on consultation. A total of 36 participants (24 in the room and 12 virtual) attended the consultation meeting, mostly from entities in the water sector (FIPAG, AdRS, AURA, ARA-Sul). Received comments were addressed in the final ESSA. Inputs to the Program Action Plan The following table summarises the measures that the ESSA team recommends for inclusion in the Program Action Plan, to be executed during program implementation to address the gaps identified above between the program and the PforR core principles. SN. Action description Responsible Deadline Completion measures/ Party Indicators Environmental and Social (ES) Actions ES-1 Establishment of an E&S management Unit FIPAG Before starting ES management Unit within FIPAG, with clear responsibilities and the PforR established, with roles for construction and operation phases. implementation permanent staff. ES-2 Finalisation and approval of the ESMS FIPAG Year 1 ESMS Manual approved Manual (following ISO 14001 or WBG and under guidelines), including among others, OHS implementation. standards to ensure GIIP by the construction contractors and the Resettlement Policy Framework. ES-3 Hiring of a social specialist with a minimum FIPAG Before starting Social specialist hired. of 5-year work experience in resettlement civil works plans, gender and GBV, to be part of the E&S Unit. ES-4 Expansion of FIPAG’s existing Projects GRM FIPAG Before starting GRM under to the South and Maputo Metropolitan civil works implementation in Areas, and its integration in the general South and Maputo GRM. Metropolitan Areas. ES-5 Training of helpline operators and social FIPAG Before starting Helpline operators and workers in guiding principles for safe and civil works social workers trained ethical handling of SEA/SH allegations in SEA/SH guiding (confidentiality, survivor centrality and principles. safety). ES-6 Implementation of an awareness campaign FIPAG Before starting GBV/EAS/SH awareness for workers on GBV/EAS/SH and signature of AdRMM civil works campaign. Codes of Conduct by all workers, with AdRS specific provisions on GBV/EAS/SH. ES-7 Preparation and implementation of a strong AURA Year 1 SEP being implemented stakeholder engagement plan (SEP) to and documented. manage the conflict between FIPAG and PWP. ES-8 Preparation of Technical Standards for PWP DNAAS Year 1 Ministerial diploma systems, including E&S provisions aiming at approving technical 10 SN. Action description Responsible Deadline Completion measures/ Party Indicators public and worker safety and proper standards published for management of wastes and hazardous PWP systems, including substances, based on inputs from E&S E&S provisions based specialists. on E&S specialist input. ES-9 Preparation of TORs samples for E&S FIPAG Year 1 TORs samples for E&S assessments of construction and AdRMM assessments rehabilitation works of water supply systems AdRS ES-10 Environmental licensing of civil infrastructure FIPAG Before starting Approved projects under Decree 54/2015 and AdRMM civil works environmental implementation of management AdRS assessments under requirements defined in these studies and in ARA-Sul Decree 54/2015. the license requirements. ES-11 Restructuring the role of AdRMM’s E&S unit AdRMM Year 1 Organisational to provide services to all departments as well structure revised. Staff as strengthening the capability of the unit to capacity increased. ensure ability to manage civil maintenance ESMS in place. contracts. ES-12 Establish and maintain of an E&S unit in AdRS Year 2 E&S unit created with AdRS, similar to the AdRMM E&S unit, with E&S staff; Staff capacity E&S staff, who progressively define and increased. E&S implement E&S procedures for the procedures in place. establishment of an ESMS. ES-13 Preparation and implementation of a AdRMM Year 1 RPF and E&S screening Resettlement Policy Framework (RPF) and AdRS procedure in place. procedure for environmental and social screening of projects. ES-14 Inclusion of specialist aquatic impact FIPAG Before starting Specialist investigation investigations in Xai-Xai Marien Ngouabi civil works undertaken and wellfield environmental assessment to mitigated impact of low ascertain risks to biodiversity in Lake Longue. significance. ES-15 Preparation of terms of references for ARA-Sul Before issuing TORs with E&S studies on surface and groundwater resource of tenders requirements following management and minor civil construction GIIP, prepared by E&S works to include E&S requirements following specialists. GIIP, prepared by recognised E&S specialists. ES-16 Preparation and implementation of E&S FIPAG Every year Annual report of E&S training for staff, taking in consideration the AdRMM during the training. potential E&S effects identified for the PforR AdRS PforR activities. ARA-Sul implementation DNAAS AURA ES-17 Promote women empowerment through the FIPAG During the Annual report of promotion of their participation in capacity AdRMM PforR women participation in building and jobs/tasks that are usually not AdRS implementation capacity building and in allocated to them, including in technical and ARA-Sul technical and management positions and in civil works. DNAAS management positions, AURA as well as in the civil work’s workforce. 11 1 INTRODUCTION 1.1 Background Mozambique has achieved significant economic growth since the end of the civil war in 1992, but important challenges still affect the country’s prospects. Many people in Mozambique still lack access to clean, piped, water. While access to clean water is a sector goal, expected to lead to significant economic and human development gains, the water sector lacks sufficient funding and capacity to meet this goal by 2030. The socioeconomic gains of water investments in Mozambique are evident in the main urban centres, where more than two decades of investment have resulted in increased access to water supply from 60% of people in 2000 to close to 90% in 2020, which has contributed to a reduction in child mortality from 95 (in 1 000 children) in 2003, to 69 in 2011, as well as a reduction in the prevalence of diarrheal diseases in children under five from 13,4% in 2003 to 9,9 per cent in 2018.3,4,5 This also translates into increased economic growth prospects, contributing to poverty eradication by increasing productivity with higher agriculture and industrial production and yields, time-saving and fewer sick workers, and reduced expenditure on healthcare and treatment.6 Further, the gains in the water sector have contributed to narrowing the gap in gender equality, and have led to the direct creation of jobs. At a sectoral level, a substantial proportion of the Mozambican urban population continues to lack consistent access to safely managed drinking water services. While 90% of urban households have access to clean water, supply is often intermittent and many people do not have piped water to their premises, relying on a public standpipe or on neighbours’ supply. At present, none of the 21 main cities have a continuous water supply service, with only seven systems reaching the target service level of 16 hours of supply per day, defined by the Water Regulatory Authority (AURA) as the threshold for good performance. Public drinking water services managed by state agencies7 are also not expanding at the same speed as the growth of urban settlements, which are growing at 4,4% per year8, with the shortfall being taken up by PWP,9 mainly in peri-urban areas. In the Greater Maputo region, over 40% of the urban population is supplied by PWP, most of whom are unlicensed and abstract water from poorly drilled, uncontrolled, boreholes that put aquifers at risk of salinisation and contamination. The quality of water delivered is also not properly monitored. In addition, PWP charge a tariff averaging 51% higher than the public utility, meaning that the poor living in the peri- urban areas pay more for drinking water services. The GoM is committed to increasing investments to secure water to meet increasing urban demand, expand treatment and distribution capacity, promote efficiency in service delivery, and foster sustainability, with the aim of delivering safely managed water to all. Nevertheless, increased investment in the urban water supply system has not always translated into sustained improved services. Poor performance in the public water sector is hampering the national effort to improve supply services. Average hours of service in the main urban systems have declined in recent years together with the reduced recovery of costs for services from water users. Water quality in both surface and groundwater sources of supply is also declining, which further threatens urban water security. Although part of this decline in service can be attributed to underfunding of the sector and rapid population growth in the main cities, it indicates that a more sustainable expansion of the water supply service demands a paradigm shift from concentrated investments in infrastructure to a 3 MISAU (Ministério da Saúde). 2005. Demographic and Health Survey 2003 Report. 4 MISAU (Ministério da Saúde). 2013. Demographic and Health Survey 2011 Report. 5 MISAU (Ministério da Saúde). 2018. Inquérito de indicadores de imunização, malária e HIV 2015 . 6 SIWI (Stockholm International Water Institute) 2005. Making Water a Part of Economic Development. 7 Two state agencies are responsible for investments in water supply in the urban space, the Water Supply Asset Holding and Investment Fund (Fundo de Investimento e Património do Abastecimento de �gua, FIPAG) in main cities; and the Water and Sanitation Infrastructure Administration (Administração das Infra-estruturas de �gua e Saneamento, AIAS) in secondary cities. 8 World Bank. 2022. Data Portal. Urban population growth (annual per cent) – Mozambique. link: https://data.worldbank.org/indicator/SP.URB.GROW?locations=MZ 9 A Survey conducted by the National Directorate of Water Supply and Sanitation in 2018, identified 1 830 PWP supplying water to 1,8 million people through piped connections in urban areas from the Southern Region, with more than 75% of the total share of this business, 1,4 million in the Greater Maputo Region. 1 coupling of investments with institutional strengthening that includes incentives for service performance improvement. After several projects have been implemented in urban water sector in Mozambique, with World Bank (WB) funding, there is now a strong strategic rationale WB to continue its intervention in this sector, with a focus on performance improvement. The Project Development Objective (PDO), defined in the Bank’s Activity Initiation Summary (P178653), is to strengthen urban water services and institutions for sustainable and climate resilient service delivery. The IDA has committed US$250 million to the project. Specifically, the project is intended to prioritise interventions in the Greater Maputo region, considering the impacts of water insecurity as well as the extended benefits of performance improvement in this key region for FIPAG's operations. This is to be complemented by extended investments in the Southern Region as the area of the country most affected by recurrent droughts that lead to water insecurity. The Programme for Results (PforR) is structured in three key RAs, specifically: • Result Area 1 - Sector Reforms: Support for sector reforms to strengthen the implementation of the Delegated Management Framework for water supply systems. • Result Area 2 - Improved Access to Resilient and Sustainable Water Supply Services: Investment in selected infrastructure for the expansion of water treatment, transport, storage and distribution capacity in the Maputo Metropolitan Region and in the cities of Xai-Xai, Inhambane and Chibuto. • Result Area 3 - Performance Improvement: Support for improvement of performance of the institutions involved in water supply. In a PforR, disbursements are linked to indicators, with the following defined for this PforR (Table 1): Table 1: Disbursement linked indicators per result area. DLI allocation Result area (RA) Disbursement linked indicator (DLI) (MUSD) DLI 1: Establishment of the institutional architecture for 32 the urban water supply sector RA 1— Improving the DLI 2: Private water providers service delivery policy 10 enabling environment for designed and implemented private sector participation DLI 3: Annual resolution on tariff review that secures the sustainability of operations issued and services 10 performance report published DLI 4: Access to safely managed drinking water services 95 RA 2—Resilient and sustainable service delivery DLI 5: Increased security of water resources for urban 15 water supply RA 3—Improvement of DLI 6: Performance improvement of regional water performance and efficiency utilities (non-revenue water reduction, operation costs 88 of services coverage ratio, energy savings, gender balance, etc.) Total 250 The environmental and social management of the PforR activities is undertaken based on the existing E&S systems of the responsible institutions, both at national level and at the level of implementing agencies. In accordance with the World Bank’s Policy/Directive “Program-for-Results Financing� (PforR) the World Bank is being undertaken an Environmental and Social System Assessment (ESSA) of the proposed Program. The overarching objective of the ESSA is to ensure that the risks and impacts of the Program activities are identified and mitigated, and to strengthen systems and build capacity to deliver the PforR in a sustainable 2 manner. Where the implementing agency does not meet the World Bank's requirements, such as lack of regulatory authority or organisational capacity to effectively manage environmental or social risks, complementary actions are proposed to strengthen the management system as well as additional measures to improve program performance. 1.2 ESSA Process and Methodology 1.2.1 ESSA Process The following components make up the World Bank process for the preparation of an ESSA: Preliminary screening: to ensure that activities that are judged to be likely to have significant adverse impacts that are sensitive, diverse, or unprecedented on the environment and / or affected people are not included in the PforR design and are excluded from the program. Stakeholder engagement: which must provide the opportunity for both internal and external stakeholders to meaningfully participate in the ESSA process, inform the preparation of the ESSA Report, and provide inputs throughout the lifecycle of the program. Generally, during the PforR preparation process, field-level one-on- one and focus group community consultations together with a stakeholder workshop are conducted to meet the stakeholder engagement requirements. Analysis: Using available documentation and the information collected during stakeholder engagement, the ESSA analyses the responsible institutions’ capacity to manage environmental and social risks on the basis of the strength of their applicable systems, staff capabilities and past history, and taking into consideration the likely significance of the potential impacts associated with the preparation and implementation of the program. Grievance Mechanism (GRM): The ESSA reviews the program-level grievance mechanisms in place and assesses their adequacy and effectiveness. The ESSA confirms whether the GRMs are suitable to receive, record, resolve, and follow-up on complaints or grievances received. Recommendations: The ESSA identifies measures and actions to manage any significant gaps in the capacity of the responsible institutions to implement E&S management systems at a level commensurate with the identified risks of the program, and consistent with the Bank’s core principles and planning elements. The Bank and the borrower together agree to implement these as part of the program. Disclosure: The draft ESSA report must be disclosed before program appraisal so that the views of interested members of the broader public may be solicited and considered before program decisions are made final. Further, the final ESSA report and recommended actions are to be completed before negotiations, and the final version disclosed accordingly. 1.2.2 ESSA Methodology This ESSA was prepared by the environmental and social team at the World Bank assisted by World Bank STCs. The methodology used to prepare the ESSA was as follows: Desk review: A review of all relevant laws, policies and guidelines, sectoral assessments and reports was undertaken. Key informant interviews: The Bank team undertook detailed one-on-one interviews with the institutions responsible for the PforR program, including the National Directorate for Water Resources Management (DNGRH) of the Ministry of Public Works, Housing and Water Resource Management (MOPHRH), the Southern Regional Water Authority (ARA-Sul), the Fund for Investment and Assets of Water Supply (FIPAG), Maputo Metropolitan Region Water Utility (AdRMM), the Water Regulatory Authority (AURA), and the Association of Water Providers of Mozambique (AFORAMO), which is one of the largest associations representing private water suppliers in the Greater Maputo area. Details of the roles of these organisations are included in Section 4. Records of meetings were kept and are included in Annexure 1. 3 Virtual (Zoom/MS Teams) meetings and interviews: E-meetings were held with South Region Water Utility (AdRS) and the National Directorate for Water Supply and Sanitation (DNAAS). Preliminary Screening: In addition to many low-risk activities, the PforR program proposes the construction of water supply and water treatment infrastructure, some of which will be large-scale. These activities were screened by the Bank safeguards team, following the ESSA guideline, to verify whether they would be acceptable for PforR, given the specific circumstances affecting each proposed activity and the agency responsible for implementing it. Description of Program Environmental and Social Effects: The Bank team analysed the key environmental and social risks associated with the activities defined in the PforR program, considering the potential hazard inherent in the proposed activities and the strength of the legal, policy and institutional framework under which the risks would be managed. The assessment was based on the criteria used in the risk screening process: likely E&S effects, contextual risk factors, E&S capacity and contextual risks and reputational and political risks (see Section 3). Assessment of Borrower Capacity: The Borrowers’ capacity to manage E&S risks was reviewed in detail. Gaps were identified, based on interviews with key members of staff and an assessment of the adequacy of available systems-related documentation, as well as records of previous Bank and other financier projects, which provided insight into past performance. Previous financing agreements for major construction projects undertaken by MOPHRH, ARA-Sul and FIPAG provided a useful basis for understanding Borrower capacity and past performance. The assessment followed the general guidance provided by the Bank’s ESSA Guidance Note, assessing and documenting: • The capacity of the responsible institutions to manage E&S issues, and the likelihood that their applicable E&S management systems will meet an acceptable standard. • The effectiveness of interagency coordination since the program involves multiple implementing agencies. • The past performance of the implementing agencies in ensuring that the E&S objectives are defined and effectively applied during project design, implementation and operation. 4 2 PROGRAM DESCRIPTION 2.1 Project Development Objectives and Result Areas The PDO is to increase access to improved water supply services and to improve service delivery capacity in selected cities. Three PDO level indicators will be used to monitor progress towards the achievement of the PDO: • Number of people provided with access to improved water supply services (disaggregated by male and female) • Additional water made available by investments under the project • Revenue to operating cost ratio. A set of intermediate results indicators will be used to measure and track intermediate steps toward achieving the PDO. The typology of the civil work financed by the program is presented in Table 2. Table 2: Typology for civil work to be done under the PforR program. Results Typology of work area RA1 • No major infrastructure investments are included in this RA RA2 • Incomati River pipe bridge • Umbeluzi River pipe bridge • Sabié Water Treatment Plant extension • Pumping stations, transmission main lines and distribution networks. • Water intra-household connections: Connection to secondary water provision network and laying of pipes to the bathroom, kitchen, sink, laundry or reserve tank. • Improvement of the primary water supply infrastructure including civil and electromechanical works. RA3 • The non-revenue water reduction program includes primary network renewal, secondary network renewal, mesh closure, and auxiliary channel renewal. The energy efficiency program covers pump adjustments, reduction of rounds, precise flow and pressure measurements, installation of monitoring equipment, fuel savings and vehicle maintenance, energy shifting or temporary shift of energy consumption, replacement of generator sets, renovation of engines, renovation of medium-low voltage boards, distributed self-generation. The expected outcomes of the implementation of the three RAs, defined by the Task Team, are illustrated in Figure 1. 5 Figure 1: Theory of Change – expected outcomes resulting from the PforR activities. 2.2 Result Areas (RAs)10 The Program’s three result areas (RAs) are: (i) RA 1. Improving the enabling environment for private sector participation; (ii) RA 2. Resilient and sustainable service delivery (access); and (iii) RA 3. Improvement of performance and efficiency of services. Annexure 2 provides a detailed Program description. In addition, the Program includes a cross-cutting area aiming at human capital strengthening. The scope of each result area is described as follows: RA 1. Improving the enabling environment for private sector participation RA1 will support a number of specific reform actions under a broader sector reform effort led by the GoM to achieve universal and equitable access to safe and affordable drinking water for with private sector participation. This RA will be divided into three sub-result areas, specifically: RA1.1—Support for the implementation of the second generation of the Decentralized Management Framework (DMF) for water supply systems, including the envisaged engagement of the private sector in the four regional water supply companies (commercial societies) created in May 2021, with the possible acquisition of up to 49 percent of their shares or other viable model of private sector participation. This result area will support FIPAG in managing the process of reforming the urban water supply sector, including strengthening it to be an institution focused on investment and asset management, migrating from its previous focus on operations that transition to the regional companies. RA1.2—Improvement of policies and regulatory environment for private water providers (PWPs) that will also support the development of the legal framework for the integration of PWP services (technical standards and bulk water supply models), including the licensing and monitoring of their water quality and services. 10 These are preliminary investments that will be validated as part of the performance improvement action plan (PIAP) that the Utilities will have to develop. FIPAG will sign a performance-based contract (PBC) with the utility for implementation of a PIAP acceptable to the Bank that will cover the NRW reduction, energy improvement and other performance improvement interventions. NRW interventions are grouped in four main areas: (i) physical losses reduction, (ii) commercial losses reduction, (iii) management technologies, and (iv) training and capacity building. 6 RA1.3—Strengthening the regulatory role to promote efficiency and inclusion in the provision of services by extending them to the poorest segments of the population and reducing the risk of investing in the sector with economic regulations that guarantee tariffs that make it possible to fully cover operating costs, fulfilment of debt service, and a return on private investment. RA 2. Resilient and sustainable service delivery (access) RA2 will support a combination of interventions from source to tap to strengthen the resilience and sustainability of urban water supply services. This includes improving the management of challenging hydrological environments to secure water in quantity and quality in the source, downstream investment to upgrade and extend water supply infrastructure to better cope with extreme climatic events, and extended improved services to an increased segment of the population. RA2 is structured in three sub-result areas, specifically: RA2.1—Expansion of access to water supply that includes investments for the expansion of the water treatment and transport capacity, and downstream investments to expand the distribution network to extend services. Investments will benefit the Greater Maputo Region (covering Maputo and Matola cities, Boane, Marracuene, and Moamba districts), and three cities from the Southern Region (Xai-Xai, Chibuto, and Inhambane) affected by recurrent droughts. The proposed interventions include an additional volume of treated water of 85,000 m3/day, 170 km of network, 55,120 new connections, and an increase in service hours in all systems to be intervened. The expansion of water supply infrastructure will be implemented both by the Regional Operating Companies (ROCs) (Maputo Metropolitan Area Water Company (AdRMM) and South Region Water Company (AdRS), and the PWP. RA2.2—Improvement of the quality of services provided by PWPs through grants for upgrading water supply infrastructure from PWPs to comply with the technical standards, and to enable them to distribute the bulk water that will received from the utilities. RA2.3—Strengthening of the South Region Regional Waters Administration (ARA-Sul) to Secure Water Availability in Quality and Quantity, providing strategic support to ARA-Sul to fulfil its mandate, covering investments that will contribute to the enhancement of water quality, assurance of water availability to meet the urban demand, licensing of water users, strengthening of its financial sustainability, capacity building, and institutional development support. RA 3. Improvement of performance and efficiency of services RA3 will support the improvement of performance and efficiency of services provided by AdRMM in Greater Maputo and AdRS in Southern cities. AdRMM and AdRS will develop Performance Improvement Action Plans (PIAP), including annual targets for three sub-result areas, specifically: RA3.1—non-revenue water reduction that includes investments to reduce both physical and commercial losses, management technologies, and capacity-building programs. The NRW reduction program is expected to be implemented by AdRMM and AdRS as part of the PIAP (option 1), benefiting from support (technical, expertise, financial) provided by the private operators after the signature of a public-private partnership (PPP) contract. In the case of a delayed engagement of a PO, a performance-based contract (PBC) for NRW reduction will be implemented. RA3.2—Energy efficiency that includes investments in comprehensive energy audits to validate proposed interventions already identified by utility-led assessments and identify investments with quick and high returns, between (i) improved pump systems design, (ii) requalification of equipment and hydraulics installation, including replacement of old and inefficient pumps and installation of variable speed drives, (iii) redesign of transformers and update of contracted power, (iv) investments in solar systems, and (v) training and capacity building on energy efficiency. RA3.3—Capacity building and institutional development of water utilities, AdRMM and AdRS, supporting the implementation of the plans derived from the Utilities of the Future assessment, including improving 7 operational, commercial, financial, human resources, communication practices, women empowerment, construction and rehabilitation of office facilities, and their equipping. 2.3 Details of Infrastructure Projects The main civil infrastructural components of the PforR program that are likely to result in the greatest direct environmental and social risk are detailed in this section as a basis for the assessment in Sections 3 to 5. 2.3.1 Incomati Pipe Bridge The pipe bridge is proposed to replace the existing 550 mm HDPE pipe infrastructure laid along the Incomati road bridge deck, and to provide a second pipe as a backup. The existing pipe on the road bridge (refer to Annexure 3-2) is a temporary arrangement to replace the collapsed pipeline which was attached to the side of the bridge. The solution proposed under the PforR program is a new steel lattice pipe bridge with reinforced concrete pillars carrying two pipelines each with a capacity of 120 000 m3/day, which will meet the long-term water demands of the Greater Maputo area. The pipe bridge design is still to be completed but it is expected to be approximately 50 m downstream of the existing road bridge (Annexure 3-1 & 3-3). The right of way associated with the bridge will be in the order of 50 m wide for the construction phase, to accommodate all of the activities and equipment required to erect the bridge, and 25 m wide for the permanent right of way. Depending on the specific circumstances, bridges may be classified as Category A+, A or B by the environmental regulator. It is expected that the Incomati pipe bridge will be Category B11, taking into consideration the relatively minor civil construction works, the absence of sensitive habitat in the area where it will cross the river and the likelihood that no physical and little economic resettlement will result from construction. 2.3.2 Umbeluzi Pipe Bridge, Maputo The metal pipe bridge across the Umbeluzi River in Campoane collapsed in 2020 due to degradation, rendering the two pipelines that supply the cities of Maputo and Matola from the Pequenos Libombos Dam unserviceable. Emergency works replaced the collapsed section, and the pipe supports on the bridge. Due to the age of the infrastructure, this intervention is regarded as temporary and a new pipe bridge in the same location is proposed as part of the PforR (Annexure 3-4 to 3-6). 2.3.3 Wellfields, Main Lines, and Distribution Centres (refer to mapping and satellite images in Annexure 3- 7 to Annexure 3-17)12 Mapping provided by FIPAG shows that the proposed main lines are routed along existing roads wherever possible. Where the main line routes follow National roads, which have a development exclusion zone within 30 m of the road edge on either side, FIPAG has made application to the National Roads Administration13 to have this restriction relaxed to 15 m, so as to minimise impacts on adjacent land use. Similarly, FIPAG proposes to request relaxation of road reserve requirements for secondary roads, in cases where there is potential impact on housing and other building infrastructure along the roads. In several cases, such as the district road to Tofo, development has encroached into the road reserve to within 10 m of the road edge. All information in this sub-section is approximate, being estimates based on preliminary studies, which may be subject to some change as the designs are developed. In the latest planned activity schedule (Annexure 2), the Chicumbane wellfield has been excluded, although this may be reintroduced, and the 11 Regulation 54/2015 defines Category B projects as those that consist of actions that do not materially affect living beings or the natural environment, compared with Category A. 12 All wellfield and DC areas and mainline distances are estimates based on preliminary mapping provided by FIPAG. These are subject to some change as the designs are developed. 13 Administração Nacional de Estradas 8 description below is retained, since it is a good example of the general issues associated with all of the wellfields and associated infrastructure. (i) Xai-Xai (refer to mapping and satellite images in Annexure 3-7 to Annexure 3-13) The proposed groundwater systems in the Xai-Xai district consist of three wellfields, 33 km of main line and four distribution centres (DCs). The Marien Ngouabi wellfield will include approximately five boreholes covering a reserved area of 8,3 ha. Borehole testing in the field has indicated that a sustainable yield for each borehole is likely to be around 50m3/hour. The wellfield is connected to two distribution centres via 350 mm diameter, HDPE main lines with a combined length of approximately 13 km. The DCs includes a pump station, water tower and storage reservoirs. The Chonguene wellfield will consist of approximately six boreholes covering a reserved area of 36 ha, connected to a distribution centre via a 6,8 km long, 350 mm diameter, HDPE pipeline. The DC will include a pump station, a 250 m3 water tower and a reservoir of 2 000m3. The Patrice Lumumba wellfield, consisting of an unspecified number of boreholes covering a reserved area of 17 ha, connected to a distribution centre via a 1,2 km long, 350 mm diameter, HDPE pipeline. The Chicumbane wellfield includes approximately four boreholes covering a reserved area of 36 ha, connected to a DC by a 9 km long, 350 mm diameter, HDPE pipeline. The route alternative shown in blue in Annexure 3-9 is preferred, bringing the pipeline closer to the load centre and reducing the length of network connections. In addition, Xai-Xai civil works will include construction of four pump stations, rehabilitation of 9 DCs, completion of other minor rehabilitation and the construction of 75 km of network pipelines serving local communities (Annexure 2). (ii) Inhambane (refer to mapping and satellite images in Annexure 3-14 to Annexure 3-17) The proposed groundwater systems in the Inhambane district consist of three wellfields, a main line and three distribution centres. The Malembuane wellfield will consist of 10 new boreholes and five existing boreholes covering a reserved area of 37 ha, connected to a distribution centre at Tofo via an 18 km long, 350 mm diameter, HDPE pipeline. The DC will include a pump station, a 250 m3 water tower and a reservoir of 2 000 m3. In addition, a new 2 000 m3 reservoir is proposed at the distribution centre at Guiua, together with rehabilitation of other infrastructure at the DC. 2.3.4 Sabié Water Treatment Plant Extension (refer to mapping and satellite images in Annexure 3-18 and Annexure 3-19) The extension of the Sabié Water Treatment Plant (WTP) will provide an additional 60 000 m3/day of treatment capacity, bringing the total treatment capacity to 120 000 m3/day. In the first phase of the Greater Maputo Water Supply Project (P125120), financed by the World Bank, the following infrastructure associated with the Sabié WTP was installed, producing 60 000 m3/day: • Pump station (located in Corumana) • Pumphouse building • Pressure control vessels • Generator and diesel tank • Water Treatment Plant (located in Sabié and including components for the physico-chemical treatment chain with pre-oxidation, a treated water storage tank at the end of the treatment chain, a pumpstation for treated water and associated structures and a sludge storage area with a total area of 4 ha • Control tank (CTA, located in Pessene) 9 • Supported reservoir with a capacity of 5 000 m3 • Security facilities • Centralised technical management system (telemetry) • Terminals for remote units • SCADA system for command centres The Corumana - Machava pipeline has a capacity of 120 000 m3/day and the demand for water is increasing in the Maputo Metropolitan Region, justifying the need of doubling the production capacity of the Sabié WTP. As a part of the PforR, FIPAG proposes to extend the Sabié WTP and associated infrastructure as follows: • Doubling of raw water pumping capacity by replacing pumps and other equipment • Expansion of water treatment infrastructure • Doubling of water reserve capacity • Installation of additional electrical and mechanical equipment • Construction of a workshop • Construction of a warehouse for chemicals • Doubling the pumping capacity of treated water by replacing pumps with different equipment • Doubling the capacity of the control tank in Pessene • Protective construction for SCADA panels along the pipeline • Construction of internal roads • Construction of houses for technicians and other complementary works All of the land required for the additional works at the Sabié WTP expansion is under FIPAG’s control, and no resettlement or livelihood restoration will be required. The construction process will be similar to that followed for the existing water treatment works, with the appointment of civil contractors to build the works. It is expected that MTA will classify the project as Category B, for which a simplified environmental assessment is required. No DUATs under the Land Law will be required. Other infrastructure to be constructed outside of the Sabié WTP is also expected to be on land under the existing control of FIPAG (the control tank at Pessene and the SCADA panels along the pipeline). 2.3.5 PSSAs along the Corumana-Machava Pipeline Sabié WTP was located close to the source of water at Corumana Dam to allow the communities along the pipeline that transports treated water from Corumana to the Machava CD to also benefit. Water supply to the Greater Maputo using this pipeline started in 2020 and since then there has been some negative reaction from the communities along the pipeline who were expecting to be supplied, with vandalisation of the pipeline occurring in some areas. In this context, seven localities/villages have been identified for the installation of small water supply systems (PSSAs), consisting of supported or semi-buried reservoirs, elevated reservoirs, pumping stations, chlorination stations, commercial buildings, distribution networks and new household connections and fountains. The installations will be at 7 de Fevereiro, Corumana, Sabié Administrative Post, Vila da Moamba, Pessene Administrative Post and Tenga. Detailed designs are not yet available. Since there are water supply systems in the Administrative Post of Sabié and in Vila da Moamba and Pessene, these communities have already been connected to the new Corumana supply, although the reserve capacity will be extended, and the network expanded to accommodate growing demand. 2.3.6 Non-Revenue Water Reduction (refer to photographs in Annexure 3-20) Non-revenue water has a significant impact on all FIPAG operations. Fifty-six per cent of all water supplied by FIPAG is non-revenue water (NRW), either due to physical or commercial losses. Commercial losses are made up of water used but not paid for. Physical losses in 2020 were estimated to be 21 million m 3 for the Greater Maputo Area, with commercial losses of 25 million m3, at a total cost of US$30 million per annum. 10 The Accelerated and Integrated Program for Losses Reduction (PAIRP), supported by the PforR, estimates that potential physical losses can be reduced by US$ 9 million and commercial losses by US$ 8 million, giving a total saving of US$ 17 million or ~57% of the present total revenue loss. The interventions that are proposed, detailed in Annexure 2, are as follows: AdRMM Greater Maputo • Repair of three (3) leaking reservoirs (Machava, Matola and Belo Horizonte) and water towers. • Replacement of 150 km of obsolete network pipelines and installation of 90 km of new network extensions. Network pipeline installations are typically HDPE pipes, which are laid in the road reserves within community precincts. • Decommissioning of 11,4 km of overlapping network and the transfer / rehabilitation of 7 285 connections. AdRS Southern Cities • Replacement of 15 km of obsolete network and spaghetti in Chokwe including transfer of 1 280 connections • Repair of leaks in the CD2 Distributor Centre reservoirs in Chibuto • Replacement of 50 km of obsolete network and spaghetti in Chibuto, including transfer of 3 100 connections • Repair of existing distribution centre tanks in Maxixe • Replacement of 20 km of obsolete network and spaghetti in Maxixe and transfer of 4 000 connections In addition to physical loss reduction, commercial loss reduction (such as replacement of faulty meters and recovery of suspended customers), improved management technologies and training are also expected to contribute to the PAIRP. Saved water from physical losses will be sold to other customers and will become an additional revenue stream. 2.4 Preliminary Screening of Result Areas Preliminary screening by the Bank’s team indicated that none of the proposed RAs are likely to result in significant environmental or social risk, assuming good international industrial practice (GIIP) for those RAs involving civil works, repair and maintenance. A screening checklist is provided in Annexure 4. Many of the supporting RAs are designed to improve institutional performance and will have positive environmental and social impacts, subject to appropriate institutional capacity to design and implement the RA. 11 3 EXPECTED PROGRAMME ENVIRONMENTAL AND SOCIAL EFFECTS 3.1 Programme Environmental Effects 3.1.1 Potential Environmental Benefits (i) More efficient use of water as a scarce resource. Several of the planned PforR activities in RA1, RA2 and RA3 will directly or indirectly benefit water conservation, by minimising the risk of wastage, overutilisation and deteriorating source quality and by improving the capacity of the organisations responsible for urban water supply to effectively manage the resource sustainably. In particular, the RA3 program will assist in the planning and balanced development of groundwater and surface water resources, assisting decision-makers to optimise supply. RA3.1 includes non-revenue water (NRW) recovery programs for all three of the main urban areas under consideration – Maputo, Xai-Xai and Inhambane as well as secondary towns of Chokwe, Chibuto and Maxixe. NRW is the volume of water supplied into the network that does not generate revenue either because it does not reach the customer due to leakage (physical loss) or because it is consumed but not billed (commercial loss). FIPAG (2021) estimates that NRW in the Maputo metropolitan area alone amounts to around 46 million m3, or 56% of the total water supplied at a 2020 value of $30 million. Just under half of this loss (26%) is estimated to be due to physical leakage, consisting of leakage on service connections (12%), leakage at reservoirs (2%) and leakage on network pipes (12%). Physical loss reduction planned in the PforR program includes actions to repair leaking reservoirs, replace obsolete/leaking network pipes and intensify leak repair campaigns of service connections. RA3.2 addresses energy losses in the water supply system, based on energy efficiency audits followed by the replacement of old and inefficient pumps and installation of variable speed drives (VSD). Other NRW interventions include reduction of commercial losses (non-payment), implementation of management technologies and training and capacity building to facilitate NRW recovery. This strategy is directly aligned with the World Bank’s resource efficiency objectives in the Environmental and Social Framework. Recovery of physical losses will proportionately reduce supply requirements. Recovery of non-payment losses will indirectly benefit water conservation by enhancing efficiencies throughout the system, and by providing the responsible authorities with the financial leverage to pursue further efficiency objectives. (ii) Reduced risk of salt water intrusion due to excessive pumping of aquifers and contamination due to poor catchment management and poorly drilled and maintained PWP boreholes. The increasing use of groundwater for domestic urban consumption without effective monitoring and management of abstraction raises the possibility of salinisation of aquifers due to seawater intrusion. There is presently limited control over the use of groundwater by PWP. The licensing provisions through municipality/district administration are aimed more at the collection of tariffs than the protection of the groundwater resource. Existing data suggests that there is still opportunity for further development of groundwater-based supply systems14, but the database is inadequate for science- based decisions about where and how much groundwater can be safety abstracted without long- term negative impacts on aquifers, nor is their facility to systematically monitor groundwater abstraction and model changes and trends to manage abstraction adaptively. The modernisation of the groundwater monitoring network proposed (RA2.5), and the control of water use through expansion of the registration and licensing of ARA-Sul users (RA3.4), will strengthen MOPHRH’s ability to effectively manage the use of groundwater resources. Planned activities under RA2.5 and RA3.4 include the installation of a piezometer network, which will provide the basis for ongoing monitoring of the state of groundwater reserves and the geohydrological mapping of the South Zone; the preparation of a protection strategy for the Inco-Umbeluzi and 14 SADC-GMI (2019). Gap Analysis and Action Plan – Scoping Report: Mozambique. SADC GMI report: Bloemfontein, South Africa. 12 Limpopo sources to minimise risk to groundwater, which may include broad catchment management recommendations and other source protection measures; the development of water allocation models in the Umbeluzi and Incomati catchments, which will provide a basis for more scientific determination of the development of sustainable water sources, combining groundwater and surface water; and measures to better control groundwater use through the improved registration and licensing of ARA-Sul users, including penalties for non-payment. All of these activities will strengthen MOPHRH’s ability to effectively manage and develop groundwater sources sustainably. Other RAs to improve performance include technical standards for PWP’s, to be prepared by DNAAS (RA1.3.1), which will include minimum requirements for the design and construction of boreholes and a minimum radius between boreholes and any potential contamination sources such as pit latrines. Resources will also be available for training of licensing authorities, municipalities and district administrations to supervise groundwater development and inspect installations before licensing or license renewal (RA1.3.3). (iii) Enhanced climate resilience. Mozambique is vulnerable to climate change and its related effects on water resources, with the greatest limitations in the southern part of the country. Extreme events, including recurrent drought which fail to replenish reservoirs and aquifers, and floods, are predicted to become more common. One activity involves the development of water allocation models to determine water resource development needs under various climate change scenarios. In addition, many of the other activities in the program to be undertaken by ARA-Sul under RA2.5.1 (refer to Annexure 2) are designed to strengthen water resource management capacity, protect catchment sources, and plan and implement measures to use water more efficiently – all of which will improve climate change resilience. From an environmental perspective, this will strengthen the GoM’s ability to protect existing sources from increasingly extreme climate events and reduce the need to develop emergency supplies, with their accompanying environmental risks and impacts.15 (iv) Enhanced management of instream flow requirements. RA2.5.1.8 includes activities to strengthen ecological management of dams in the south. Minimum environmental flows from Corumana Dam have been determined as a part of the recent civil works to increase the storage capacity. Implementation of the rules for water releases is built into the Operating and Maintenance Plan for the dam, but ongoing work is required to strengthen the capacity to manage ecological water releases, including the implementation of a monitoring program to verify reservoir and downstream impacts. 3.1.2 Potential Adverse Environmental Risks and Impacts (i) Health and safety risks during civil construction works. Civil construction contracts involving the use of heavy construction machinery, the transport of large quantities of supplies and equipment, concrete works, trenching and other excavations, may result in potentially significant risks to the health and safety of construction workers. Civil construction projects worldwide rank among the highest causes of injury, per thousand manhours worked, and in Africa, the average fatality rate is an order of magnitude higher than in similar projects in developed countries16. The reasons for this are complex but typically reflect lax attitudes towards OHS performance by management. In the current context, the risk is considered to be moderate, since FIPAG and ARA-Sul have a demonstrated OHS performance record which is well above average. In the recent construction phase of the Greater Maputo Water Supply Project, no serious or fatal accidents were recorded on the sites under FIPAG’s control. FIPAG has established health and safety guidelines for contractors, and is steadily improving its capacity to manage the OHS performance of its contractors. ARA-Sul, AdRMM and AdRS have 15 Other interventions to improve the safety of the Pequenos Libombos and Corumana dams will be covered by the Regional Climate Resilience Project (P180171, under preparation), while PforR will provide additional support. 16 The annual fatality rate per 100 000 workers is roughly 0,5–3,5 in developed countries, compared with 17–19 in sub-Saharan Africa, South Asia, and Latin America 13 significantly less management capacity and there will be a need to significantly improve their capacity to effectively manage OHS risks of the PforR program. (ii) Pollution caused by civil construction works. The activities under RA2 will involve civil works that include pipelaying and large-scale infrastructure construction, including heavy machinery, transport of materials and equipment, and concrete batching. For some of the activities, such as the expansion of the Sabié WTP, there will be a labour force of up to 500 people at peak construction, resulting in associated hygiene and sanitary pollution risks and generation of solid waste. Small hydrocarbon spills due to leaking equipment and inadequate control of fuelling points and service yards are typical hazards associated with such projects, with a risk of larger spills if diesel storage tanks are not properly contained. Subject to a proportionate level of management control, pollution risks are expected to be low to moderate. FIPAG has experience of the management of contractors responsible for large construction works and has standard measures for ensuring that the waste management hierarchy is applied in accordance with Mozambique law and GIIP. FIPAG’s capabilities regarding environmental management are improving as their ESMS is developed. (iii) Biodiversity risks of pipe bridge river crossings. The new pipe bridges planned to replace the temporary crossings of the Incomati River and Umbeluzi River will result in some riparian habitat damage, temporary sediment generation in the river channels and potential for other pollution during piling, or as a result of hydrocarbon spills. The Bank team has reviewed existing documentation and databases to confirm that neither site is associated with any recognised confirmation areas (Key Biodiversity Areas, Important Birding Areas or other nationally or regionally recognised areas of conservation importance). The environmental and social impact assessment for the recently constructed Corumana-Machava pipeline, which was initially attached to the Incomati River road bridge before it collapsed, and is now temporarily routed along the bridge verge, indicates that while sensitive, as is the case for all river systems, there were no observed Red Data species found during the surveys and the likelihood of their occurrence was low, taking into consideration the high degree of anthropogenic disturbance at the site caused by the bridge and the extensive surrounding agriculture, which has removed most of the untransformed riparian vegetation and which has become even more pronounced over the past 9 years since the ESIA was prepared. Overall, biodiversity impacts are expected to be low, subject to the normal good international industry practice during civil works construction. The crossing is easily accessible without major road construction or excavation and is situated within the general area of disturbance caused by the existing road bridge; the river channel embankments are shallow and will not require large earthworks on the approach; and the likelihood of encountering any Red Data species is low, as well as the risk of impacting on them should they occur, being equally low. Construction during the dry season would be preferable, when flows in the Incomati River are minimal. The Umbeluzi River pipe bridge crossing will be located within the disturbed footprint of the two existing pipe bridges, separated by about 20 m (Annexure 3-5 to Annexure 3-6). The upstream and downstream riparian areas are extensively modified by peri-urban and urban activities in Belo Horizonte, Maputo. The pipe bridge is planned as a single span across the river channel, which at the point of crossing is in a clearly defined channel with no associated wetlands or riparian forest. Seven kilometres downstream, the river enters an extensive area of salt marshes which are associated with the Tembe River and Maputo harbour. Biodiversity impacts are likely to be minor. There will be no piling within the river channel and no significant disturbance of aquatic habitats should result from construction, subject to good international industry practice during civil works. Occurrence of Red Data aquatic species could not be confirmed but is unlikely, taking into consideration upstream and downstream disturbances, which include a sewage treatment works downstream of the site. (iv) Biodiversity risks of the Xai-Xai groundwater wellfields, overland main line, distribution centres and network construction, and other civil works. Satellite imagery of the areas proposed for the 14 wellfields and the associated main lines shows that significant habitat-related impact as a result of clearing for the civil works will be minor, nor is there likely to be any direct impact on IUCN Red Data species. The wellfields and pipeline infrastructure are entirely within areas that are intensively cultivated, or along national roads, or within or next to the road reserves of peri-urban settlements. Direct risks to biodiversity as a result of clearing of habitat are expected to be insignificant subject to the implementation of good international industrial practice to minimise pollution risks during construction. Reference is made to Annexure 3-7 and Annexure 3-9 to 3-11, which include illustrative satellite images of the wellfields and main line routes. FIPAG expects the medium term demand for water to be supplied by the Marien Ngouabi wellfield to be in the order of 230 litres/sec. This will potentially impact on water levels in Lake Longue, 300 m to the south (Figure 2). Lake Longue is a large wetland, approximately 10 323 ha in extent, fringed to the south by several smaller lakes. Its bathymetry is unknown although extensive emergent vegetation suggests that it is shallow. There is likely to be direct hydraulic connectivity between the wetland and the aquifer. Studies done by FIPAG show that the near-surface geological formations are sandy and permeable, with the aquifer being highly transmissive, consisting of sediment to a depth of between 60 m and 120 m below surface. While pump tests in the well field have demonstrated quick groundwater recovery rates, the level of drawdown of the water table necessary to impact on Lake Longue may be small, as is shown conceptually in Figure 2. Without further detailed assessment, the extent and significance of the impact of abstraction from the wellfield is unknown. No information is available about the biology of the lake system, and research into the many other barrier lakes in southern Mozambique between Ponta da Ouro and Inhambane is also very limited. Massinga and Hatton (1996), in a World Bank funded case study, observed that these systems are important for a number of reasons, being refuges for many wader species (some of which may be threatened), containing a variety of fish species which vary depending on the salinity of the lake/wetland, and providing ecosystem services to local communities, who use them extensively for artisanal fishing. Of thirty different freshwater and estuarine fish species listed by Tello (1973) as occurring in Mozambique’s coastal barrier lakes, at least three may be endangered or critically endangered (Table 2). Table 3: Threatened fish species potentially occurring in Mozambique’s southern coastal barrier lakes (Source: iBAT). Species IUCN Red Occurrence in Preferred Habitat Data Status Xai-Xai Area Serranochromis meridianus Endangered Probably Sandy pools with well vegetated banks (Lowveld largemouth) resident (phragmites) as well as overhanging vegetation Silhouettea sibayi (Sibayi gobi) Endangered Probably Occurs in coastal freshwater lakes. resident Found over sand substrates where it buries itself Chetia Brevis (Orange-fringed Endangered Deep pools with sandy substrate and river bream) dense riparian zone Oreochromis mossambicus Vulnerable Widespread in rivers and lakes. (Mozambique tilapia) Vulnerable due to hydridisation and competition with Nile tilapia Internationally, there has been increased emphasis on wetland conservation in recent years. Most of the world’s wetlands are not protected in formal conservation areas and are under threat from development activities. Mozambique’s regulatory framework prohibits activities that impact negatively on wetlands. 15 A scientific assessment would be necessary to verify the probability of abstraction impacts on water levels in the wetland, and any effect that this would have on wetland ecology and function, including possible impacts on resident and migrant species, including Red Data species. Figure 2: Schematic of the aquifers feeding the Mozambique coastal barrier lakes and wetlands. (v) Biodiversity risks of the Inhambane groundwater wellfields, surface abstraction, overland main line and network construction, and other civil works. The Malembuane wellfield and associated 18 km of main line to Tofo are unlikely to result in significant habitat-related impact during clearing for the civil works, nor is there likely to be any impact on Red Data species. The wellfield is situated in a patchwork of cultivation, typical of peri-urban areas. Sixty-five per cent (11.7 km) of the pipeline route is adjacent to the National Road (N242) to Tofo, while the remainder is either along community roads or through areas of rural subsistence cultivation. Direct risks to biodiversity as a result of clearing of habitat are expected to be insignificant subject to the implementation of good international industrial practice to minimise pollution risks during construction. Reference is made to Annexure 3-14 to 3-17, which include illustrative satellite images of the wellfield and main line route. (vi) Biodiversity risks of the Phase 2 expansion of the Sabié WTP, the Corumana pump station and associated infrastructure. The land required for the expansion of the Sabié WTP Phase 2 expansion is already under FIPAG’s control and habitats are modified. Direct risks to biodiversity are expected to be insignificant subject to the implementation of good international industrial practice to minimise pollution risks during construction. Reference is made to Annexure 3-8 to 3-19, which include illustrative diagrams and satellite images of the WTP expansion. (vii) Palaeontological and archaeological risks of construction excavations. The likelihood of archaeological or palaeontological remains being found due to excavation is small, in the context of the urban and peri-urban excavations that are proposed. None of the main construction areas are near recognised documented sensitive sites. FIPAG has in place a chance find procedure which its contractors are obliged to comply with. The risk of a significant threat to cultural resources is low. 3.2 Potential Social Benefits, Risks, and Impacts 3.2.1 Potential Social Benefits (i) Health benefits for current beneficiaries of the system and new consumers covered by the system expansion, including vulnerable groups. The activities under RA2 will increase production of drinking water by the WSS, improve the system reliability and expand the water supply system coverage in the metropolitan area of Maputo and surrounding areas of the cities of Xai-Xai and Inhambane, while RA3 will include activities to reduce water losses in the system, improving the access to safe drinking water and contributing to the reduction of the incidence of water-related diseases. (ii) Improved quality of life, especially for women, due to increased coverage of access to safe drinking water. Improved access to safe drinking water in the household, through household connection or yard taps (RA2), frees women from the task of fetching water, making more time available for other household activities, human capital development, or income-generating activities. In addition, it 16 reduces the risk of GBV, as women do not have to collect water outside their home. It is noted that the target areas comprise rural and peri-urban settlements with low-income levels and poor populations. (iii) Improvement in consumer protection and conflict resolution due to strengthening of AURA (RA1). To be noted that as regulator of water supply service, AURA supervises the quality of the service and the performance of suppliers in responding to consumer complaints. AURA has been playing an active role in mediation of the existing conflict between FIPAG and PWP, in areas where there is an overlap between FIPAG expansion areas and areas already served by PWP. AURA’s strengthening would contribute to the mediation of this conflict, which will result in a positive impact of the program. (iv) Improvement of communities’ resilience to climate risks. The increase of household distribution of drinking water (RA2) helps beneficiary communities to cope with difficulties in accessing water in situations of flooding or drought, increasing the resilience of the population to climatic events. (v) Job opportunities for local people. The civil works under component RA2 as well as the women empowerment activities of RA3, could create job opportunities for local people, which should be promoted by contractors and subcontractors. (vi) Human capital development resulting from the training opportunities proposed under each of the three RAs for staff, internships and external candidates. (vii) Women empowerment as a result of the implementation of the women empowerment activities in RA2 and RA3, promoting human capital development, employment and increase in income. 3.2.2 Potential Adverse Social Risks and Impacts (i) Risk of vulnerable groups being excluded from project benefits due to lack of capacity to pay. Although there is a social tariff, it is based on the volume of consumption, which does not always reflect the vulnerability of the household. Thus, there is a risk that large families who are vulnerable due to low income are not covered by the social tariff and are disadvantaged due to their inability to pay for the water supply service. (ii) Risks for community safety. The implementation of construction or maintenance civil works (RA2) within inhabited areas has associated risks for community safety, if the work is not properly signposted and access to the work site, open ditches and machinery circulation areas is not defined. The circulation of construction site vehicles and machinery creates an additional risk for pedestrians and other vehicles. (iii) Risk of non-compliance with legal working condition requirements by the PforR implementing agencies, its contractors and subcontractors. (iv) Risk of GBV/SEA/SH incidents. Contextually, in Mozambique, gender-based violence (GBV), including sexual exploitation and abuse (SEA), is persistent and widespread. During construction works the risk would be higher in activities carried out in densely populated areas, namely in peri- urban and rural areas, mainly in areas with higher levels of poverty. The risk could also be higher in activities requiring larger number of non-local workers, such as the construction of the WTP, pipe bridge river crossings, new WTP and new main trunk pipelines. In some situations, the power relationship between AdRMM/AdRS staff and the consumer may also create GBV/SEA risks, namely if there is a risk or threat of water supply cut-off due to a household’s inability to pay. (v) Permanent and/or temporary physical and/or economic displacement resulting from civil works under RA2, especially from the construction of new wellfields and main pipeline in the surroundings of Xai-Xai and Inhambane cities. The length of these pipelines and the fact that they are planned in populated areas, or in its surroundings, creates risks of economic and even physical loss. Although pipelines will be laid along existing roads, there will be a risk of affecting assets and land use for income-generation or subsistence activities. The Land Law establishes as partial protection zones the 17 50 m strip adjacent to pipelines. The main lines will have a permanent right of way 5 to 10 m for maintenance purposes where no land use (including agriculture) is authorised. During the construction phase, a right of way of 15 m (7,5 m per each side of the axis) will be required. For the boreholes the permanent protection zone will vary from 20 to 60 m, depending on the geohydrological conditions. The wellfield will be fenced, but depending on the extent of the Partial Protection Zone, the adjacent area outside the fence could also be subject to land use restrictions17. As described in Section 2.4.2 well fields and main lines are proposed to Xai-Xai, for Chicumbane, Chongoene and Xai-Xai’s Patrice Lumumba neighbourhood. Both towns are out of Xai-Xai municipality, but within Xai-Xai district that surrounds the municipality. Chicumbane is a small town developed along the N1 road, separated from Xai-Xai city by the Limpopo River flooding area, being currently an expansion area of Xai-Xai city. Between two analysed alternatives for the main line, FIPAG selected the one that would have less interference with assets. The main line will have DN350 and 9 km-length, being about 40% along the N1 road, 30% along narrower dirt roads within planned residential areas and the remain 30% within no residential areas, where subsistence agriculture fields and fruit trees are found. FIPAG intends to lay the main line within the N1 road reserve (after approval from the road authority). Depending on the authorised distance from the road edge, there could be risk of loss of fruit trees, while fences and walls might be affected along the narrower road within the residential area. Areas with subsistence agriculture and fruit trees are found along about 2,7 km of the main line and within the wellfield area and the area for the reservoir, pumping station and water tower are currently being used for subsistence agriculture. To be noted that a 36-ha reserve has already been negotiated with the local authorities for the wellfield as a mitigation measure to prevent future occupation. No compensation processes have started yet. The proposed Chongoene main line has about 6,8 km, being 43% (2,9 km) along N102 headed to Chibuto. Some 800 m of the main line is to be developed in an unplanned residential area, along a narrow dirt road, with risk of damages to structures. The areas for the distribution centre and wellfield are currently under subsistence agriculture with scattered fruit trees, while along about 2 km of the main, there are scattered houses. Economic losses are expected with risks of losses of property infrastructure, such as fences and walls. Patrice Lumumba neighbourhood is a rural area with scattered houses, subsistence agriculture fields and fruit trees. The main line is about 1,2 km long and will be mainly laid along an existing dirt road, although adverse impacts would be expected to affect subsistence agriculture fields and fruit trees adjacent to the road. In Inhambane, the proposed main line to Tofo (see Section 2.4.3) has a total length of 18 km, DN 300 HDPE. About 11 km will be developed along the N242 headed to Tofo, with the remainder crossing rural areas with subsistence agricultural fields and fruit trees. There are approximately 30 houses less than 10 m from the road, which could be affected by the construction of the main line. In summary it is likely that several hundred PAPs will experience economic losses and a few dozen will experience physical losses (around 30 houses), as well as the loss of some fences and walls, the latter being mainly along the Tofo road. (vi) Risk of adverse impacts affecting cultural heritage sites (including sacred sites, graveyards and graves) and archaeological heritage during construction and excavations. The risk is low as the civil works will be mainly undertaken along roads, in peri-urban areas, although a screening process shall be conducted prior to construction, through consultation with local authorities and communities to identify potential sites. An archaeological chance find procedure will be implemented following the legal requirements. 17 Decree 30/2003. 18 (vii) Risk of conflict exacerbating conflict between FIPAG and PWP due to progressive overlap of service areas that has led to the loss of customers and infrastructure by PWP. The previous absence of public water supply service coverage in peri-urban areas has resulted in the proliferation of private systems. PWP have played an important role in supplying water to these populations, which include areas with high levels of poverty, considered by the legal framework as relevant stakeholders. The progressive expansion of the public network into areas covered by PWP has resulted in conflicts between PWP and FIPAG. This included a strike in 2015 when water was cut off for two days, prompting the development and approval of the Regulation for Licensing of Water Supply by PWP (Decree 51/2015). This regulation defines three possible arrangements for areas where public service expansion overlaps areas served by PWP – partial or integral integration of the PWP with compensation or coexistence. The integration would be based on distribution of bulk water to be supplied by the public service, as long the PWP has appropriate infrastructure for this purpose (which has still to be established in technical standards to be developed by DNAAS). In 2021, there was another a threat of water being cut off by the PWP. A conflict mediation commission was established with representatives of the MOPHRH, AURA and the AFORAMO (PWP association), which resulted in a MoU (signed on December 21), between MPOPH and AFORAMO, comprising measures for managing overlapping areas and for areas that only have PWP systems. As per the MoU, until a resolution of the conflict is reached in overlapping areas, FIPAG/AdRMM is prevented from making connections to customers who are already served by PWP. In these areas the public provider will enter into contracts with the PWP to sell bulk water, based on a tariff to be established by AURA. The tariff is not yet established but FIPAG is implementing a pilot project with some PWP. Operationalising the bulk water supply model (with conditions acceptable to PWPs) should make it possible to integrate PWP systems, as they will receive treated water from regional companies and keep the markup on the downstream sale to their current and additional customers, prior to the expansion of the utilities network into areas where the small providers are operating. In areas that only have PWP systems, the water supply will be granted to the PWP and the public service will only invest in higher components of the WSS, consisting of the main lines, WTP and abstraction. Therefore, the expansion of a distribution network and connections under this PforR (RA2) to areas with existing PWP systems might exacerbate the conflict. Note that this risk will not occur in areas where, due to poor groundwater quality, there is no PWP presence. 19 Figure 3: Water supply expansion areas in the Greater Maputo region. 20 4 RELEVANT LEGAL AND INSTITUTIONAL FRAMEWORK 4.1 Legal Framework Applicable to the Programme 4.1.1 Environment The principle of sustainable natural resource management is embedded in Mozambique policy and legal instruments. Mozambique has a comprehensive environmental policy and legal framework which addresses environmental assessment, environmental quality, water resources, biodiversity, climate change, disaster management and occupational health and safety. The Mozambican Constitution, revised in 2007, requires that the state must promote initiatives that ensure ecological balance and preservation of the environment, for the benefit of all citizens. Mozambique’s Environmental Policy, published in 1995, emphasises the need to ensure sustainable practices in the development of the country, which is legally enforced through the Environmental Law. This law defines the legal basis for the use and management of the environment, to guarantee the sustainable development of the country. Environmental Impact Assessment (EIA) is defined in the Environmental Law as an instrument that assists the GoM in the decision-making process prior to issuing an environmental license for development projects, which must precede any other necessary legal licenses. It is applied to all public and private activities that may directly or indirectly affect the environment. The regulatory environment includes a defined process for environmental assessment which is applicable to state and private development. The EIA Regulation (Decree 54/2015) establishes a screening process that categorises the proposed activities within four categories (Category A+, A, B and C) which reflect their likely risk. The regulation defines the contents of the studies, public participation requirements, and the study review process, as well as the process for decision-making and licensing. The EIA regulation is complemented by the EIA General Directive for Preparation of EIA studies and the Directive on the Public Participation Process in the EIA Process (Ministerial Diplomas 129/2006 and 130/2006). The regulations on Environmental Auditing and Environmental Inspections (Decrees 25/2011 and 11/2006) aim to enforce compliance with the legal environmental requirements, including the conditions of the environmental licenses. With regards to matters relating to water supply and the conservation of water resources, the Decree defines the following in terms of level of assessment required for activities (infrastructure) that potentially impact on water resources • Category A: Water mains of more than 10 km in length and diameter equal to or greater than 1m • Category A: Exploration and use of groundwater where extraction is more than 500 m3/hr • Category B: Systems of water supply and sewage, conduits, treatment plants and disposal and waste systems. Environmental quality, including water quality, is protected through regulations that specify environmental standards, although catchment-specific water quality requirements are absent. The Regulation on Environmental Quality and Emission Standards (Decree 18/2004, revised by Decree 67/2010) is very broadly framed, covering all aspects of environmental quality (air, water and soil) and emission standards (air and water). While emission standards for discharge of effluents into the environment are defined there are no standards, specific to particular catchments or sub-catchments, that determine requirements for maintaining water quality based on the present ecological status of the water resource. With regard to occupational health and public nuisance, the Decree omits standards governing occupational noise limits and public disturbance. Regulations on waste management (domestic and hazardous) are determined in Decrees 94/2014 and 83/2014, which define categories of wastes and establish specific measures for the separation, storage, transport and disposal of hazardous wastes. Policy instruments and strategic plans provide a sound basis for integrated water resource management although the capacity to implement strategic objectives is limited. The policy and strategic framework recognise that water in the public domain comprises all inland water (lakes and reservoirs), surface water, 21 rivers and groundwater. It is acknowledged that the management of water resources is an issue that is cross- sectoral and requires an integrated approach between responsible institutions. The Water Policy, first published in 1991 (Resolution 7/95) and revised in 2007 (Resolution 46/2007) and 2016 (Resolution 41/2016), emphasises the general requirement for the sustainable management of water resources and integrated water resource management. Mozambique’s geographical location has resulted in its major rivers rising in other countries, and the policy prioritises the establishment of shared water agreements in international river basins, specifically the Incomati, Limpopo, Pungue, Save and Zambezi, to ensure that provision is made for human domestic, agricultural and industrial uses as well as minimum ecological flows. Improvements made in successive changes in the water policy have included the need for monitoring of water quality close to water reservoirs, at the country’s borders and close to identified pollution sources, as well as considering the minimum needs for environmental protection. The policy also identified loss prevention/reduction as a key element of the management of water supply systems in support of the principle of efficient water use. The clearest enunciation of specific actions required to manage national water resources is provided in the National Strategy for the Management of Water Resources18, which sets out short, medium and long-term actions required under the heading of management of water resources, water supply and sanitation services, water for socioeconomic development, economic and financial aspects, participation of the private sector, gender issues and institutional coordination and training. The strategy recognises that Mozambique is vulnerable to climate-related disasters, including floods and droughts and that the development of water resources must take climate resilience into consideration. It acknowledges the need to improve the implementation of a portfolio of priority project and water resource management plans, including the assessment and monitoring of water resources, watershed management plans, disaster risk analysis and management, international river management and the consolidation of administrative functions under the Regional Water Administrations (much of the institutional development in the past 15 years has been in relation to the short, medium and long-term strategic actions defined in the strategy - refer to Section 4.2 below). The strategy includes a clear account of the need for scientific determination of water resources by consolidating the functioning of the hydrometeorological station network, regular flow measurements, data analysis, processing and strengthening of capacity and skills to monitor and evaluate water resources. The importance of groundwater as a resource for potable water supply is specifically acknowledged, together with the need to strengthen controls over its use, monitor the quality of principle aquifers that have potential to form the basis of water supply systems, and perform regular bathymetric surveys. The hierarchical and integrated nature of water resources planning is recognised, in which planning must be based on an integrated multisectoral approach at the hydrographic basin level, with the involvement of stakeholders and, amongst other considerations, environmental aspects including biodiversity and associated ecosystems. The many factors affecting water quality in river basins is acknowledged, including soil degradation, pollution from agriculture, industrial and urban sources and the destruction of habitats such as riparian and wetland vegetation. The strategy underlines the need for greater emphasis on policies related to protection of water and the environment. Water must be managed according to the principles of integrated management, allowing for the conservation and preservation of ecosystems. Short-term strategic actions include measures to develop capacity to deal with issues of water quality, minimum ecological flows, aquatic plant infestations and pollution monitoring, the promotion and support of actions aimed at developing an integrated approach to water resource development and promotion of the restoration of degraded basin areas and groundwater recharge areas, including promotion of physical planning and public awareness practices to protect water resources. In the medium and long-term, the strategy promotes actions to establish protection zones for the main groundwater aquifers that have high potential for urban supply, and similar measures to protect catchments that supply surface water by means of lakes and reservoirs. 18 Approved by the Council of Ministers in August 2007. 22 Management of water pollution is a priority including adequate institutional arrangements to ensure that human resources and capacity are in place to effectively regulate and control sources of pollution. The strategy strongly advocates the polluter pays principle in relation to activities that impact on groundwater and surface water. While some of these strategic objectives have been achieved, there remain significant capacity constraints at an institutional level, discussed in Section 4.2 below. Requirements for the protection of groundwater and the management of groundwater use are limited. General requirements for groundwater resource management are included in the water policy, the environmental policy, the land policy and in the water tariff policy. The land policy emphasises that the right to use land does not entitle the beneficiary to unlimited use of groundwater, which should be limited to abstraction of sufficient quantities for human consumption and irrigation up to an established limit. The environmental policy defines the need for sectoral policies to protect groundwater from activities that may impact on its quality. The policy also makes particular reference to coastal ecosystems, and the construction or rehabilitation of water supply and sanitation systems, indicating the need for sewage treatment plants and the mapping of environmental risks. The water tariff policy re-emphasises the need to protect and efficiently use water resources, and the polluter pays principle, defined in the environmental policy. Regulation 18/2012 sets out requirements for investigation and exploration of groundwater. The regulation defines the requirements for licensing of exploration and use of groundwater. People who use groundwater to satisfy their domestic needs are not subject to licensing requirements if it is not within groundwater protection zones. An annexure to the regulation provides guidance on the nature of the information required in license applications. The Regulation has no specific requirements relating to the monitoring, protection and conservation of groundwater resources. Policy and regulatory instruments for biodiversity conservation and the sustainable management of living natural resources have been significantly strengthened over the past 5 years, although there remain weaknesses where these resources (including wetlands) are outside of areas that are recognised conservation priorities. The law for the Protection, Conservation and Sustainable Use of Biodiversity (Decree 14/2014), amended in May 2017 (Decree 5/2017), establishes basic principles and norms for the protection, conservation, restoration and sustainable use of biological diversity throughout Mozambique, but especially in conservation areas, as well as a framework of integrated administration to promote sustainable development of the country. The law is applicable to all public and private entities that may impact on biodiversity. The law reiterates the principle of citizen participation in decisions about sustainable natural resource use that is established in the Environmental Law. The law reiterates the need for applying the precautionary principle in questions of biodiversity, where there is scientific uncertainty about the significance of impacts. The law makes extensive provisions for the management of conservation areas and protection zones. Protection zones may be created as total conservation areas or as conservation areas for sustainable use. Declared protection zones are required to have management plans governing their use. Similarly, Environmental Protection Areas and Community Conservation Areas provided varying degrees of conservation while permitting other uses and specifically in the latter case, customary community uses. In the latter case, licensing of any other activities must have the consent of the community. While wetlands are referenced in Decree 14/2014, this is in the context of the creation of a national network of conservation areas (Article 12) or municipal ecological parks (Article 25). References to the protection of wetlands outside of the regulatory framework are made in the National Strategy and Action Plan of Biological Diversity of Mozambique (2015-2035). This action plan acknowledges the importance of wetlands, making reference to Mozambique as a signatory to the RAMSAR Convention on the Protection of Wetlands (Resolution 45/2003). The action plan further refers to the ecological importance of the coastal lagoons, swamps and marshes that flood during the rainy season behind the coastal dune system in the south of Mozambique, which are important for biodiversity, artisanal fisheries and tourism. The strategy describes threats to wetlands and aquatic ecosystems, which involves many factors including unsustainable rural agricultural and hunting practices and emphasises the importance of maintaining freshwater ecosystems as crucial natural resources for artisanal fishing. 23 In May 2022, the MTA approved Ministerial Diploma 55/2022, which establishes a basis for the implementation of biodiversity offsets, integrated into environmental assessment procedures. The legal basis for the diploma is provided by Article 2 of Decree 54/2015, which is the regulation governing current procedures for environmental assessment in the country. The publication of the diploma follows a lengthy period of donor support, including the World Bank/Profor Roadmap for biodiversity offsets in Mozambique, published in 2016. Both the roadmap and the diploma recognise that development in areas of high biodiversity value which cannot be fully mitigated may be subject to a requirement for biodiversity offsets. Formally recognised conservation areas (national parks, nature reserves, Key Biodiversity Areas, RAMSAR sites etc.) are typically excluded from the framework for offsets since any development in these areas is typically in support of conservation – but in cases where development is proposed a nett biodiversity gain must be achieved. In practice, biodiversity offsets will apply mainly in cases which are subject to development pressures outside of the formal conservation network, in areas of significant biodiversity value. In these cases, environmental practitioners must assess the risk and likely magnitude of biodiversity loss, taking all reasonable mitigation into account, following which biodiversity offsets must be considered to counterbalance the residual impacts. Methodologies defined in the Ministerial Diploma are fully aligned with current international approaches, making Mozambique a leading African country in the implementation of biodiversity offsets. Biodiversity offsets must be designed to achieve, at least, no net loss, whenever any significant negative residual impacts of a project occur in its area of direct or indirect influence. Biodiversity values that would trigger consideration of biodiversity offsets would include cases where the project potentially affects (i) threatened species/ecosystems (ii) endemic species / habitats with limited distribution (iii) ecosystem / habitats that have significant importance in supporting threatened, endemic or restricted range species (iv) ecosystem / habitats that provide conditions for the occurrence of significant numbers of migratory species (v) other species / ecosystem / habitat deemed important to preserve. Provision to ensure the safety, hygiene, and health of workers in the operation of public water systems are legally established in Regulation of Public Water Distribution and Wastewater Drainage Systems (Decree 30/2003), besides in the Labour Law (Law 23/2007). 4.1.2 Social The principle of equity, gender equality and social protection is embedded in Mozambican Constitution, policies and legal instruments. The Mozambican Constitution promotes, supports, and values the development of women and encourages their growing role in society, and provides special protection for children, the elderly, and the disabled. The Gender Policy and Strategy for Implementation was approved in 2007 and revised in 2017 with the general objective of guiding in an integrated manner the main lines of action for the promotion of gender equality and respect for human rights. The Family Law (Law 10/2004) reiterates gender equality and provides that both women and men have rights to administer marital property and have equal rights to transfer and inherit property. The Labour Law (Law 23/2007) establishes equal rights at work, to all workers regardless of their ethnic origin, language, race, sex, marital status, age. This law includes specific provisions for working women, namely during pregnancy and after childbirth. There are relevant legal provisions for the protection of vulnerable groups, namely: • Children - The Children's Rights Promotion and Protection Law (Law 7/2008) prohibits mistreatment of children or conditions of exploitation or oppression, which must be reported to the police. It should be noted that the Labour Law provides for the possibility of employing young people between the ages of 15 and 18 (with the authorisation of the legal representative), as long as they do not perform unhealthy or dangerous tasks or physically demanding activities and must have a reduced normal work period. • Person with disability or chronic illness - The Labour Law establishes that the employers must promote the adoption of appropriate measures so that the disabled worker or chronically ill worker enjoys the same rights and has the same duties as other workers, as well as suitable working 24 conditions, considering the specificities inherent in their reduced working capacity. Persons living with HIV/AIDS are legally protected in the workplace by the Law for the Protection of a Person, Worker or Job Applicant Living with HIV/AIDS (Law 19/2014). Decree 53/2008 defines that buildings for public use must guarantee accessibility for people with reduced mobility. • Elderly - The Elderly Protection Law (Law 3/2014) establishes responsibilities for the state to guarantee the protection of the elderly, namely through social protection. This law also defines priority in attendance at public and private agencies that provide services to citizens. The Social Protection Law (Law 4/2007) is based on the principles of universality, equality, solidarity, and decentralisation. This law defines that are covered by the Basic Social Protection nationals who are incapable of work and who do not have the means to meet their basic needs, namely: a) people in absolute poverty; b) children in difficult circumstances; c) elderly people in absolute poverty; d) disabled people in absolute poverty; e) people with chronic and degenerative diseases. The Basic Social Protection includes direct grant programs, support by social action services and productive social action program, although its level of coverage is still very low compared to the needs. It is established the goal of achieving universal and equitable access to safe drinking water for all by 2030 in the Water Policy (Resolution 42/2016), reinforced in the Water Sector Action Plan for the Implementation of the Sustainable Development Goals 2015 – 2030 (Resolution 40/2018). The Water Tariff Policy (Resolution 60/98) adopts the equity principle, assuming water as a social asset due to its importance for health and well- being, so tariffs must be established to guarantee access to basic water services for all population sectors. The tariff structure for the water supply systems is legally established, including a first tier (up to 5 m 3 per month) with a fixed value, considered as a social tariff, aiming to guarantee a basic water supply to the poorest families. Gender-based violence and domestic violence are criminalised by Law on Violence Against Women (Law 29/2009), being considered as public crimes, although they are still often culturally accepted. There are no specific legal provisions on sexual harassment, other than what is established in the Labour Law, which requires that employees who in the workplace perform acts that violate the dignity of a woman worker should be subject to disciplinary proceedings. The Labour Law defines a set of working conditions to protect workers, as the requirement for written contracts, rights to daily and weekly rest and annual paid leave, protection of paternity and maternity, right for freely association to professional organisations and unions. Resettlement and compensation due to physical or economic displacement are legally regulated by the Regulation on the Resettlement Process Resulting from Economic Activities (Decree 31/2012), that requires the preparation of a Resettlement Plan, as defined in the Technical Directive of the Process of Elaboration and Implementation of Resettlement Plans. Some gaps are identified in the current Resettlement Regulation and Guidelines, such as the no provision of cut-of-date, specific grievance mechanism and right to compensation in case of irregular occupation. This regulation is currently under revision, and it is expected that it will be more aligned with ESS5 and that these gaps are overcome. At provincial level, unit values for compensation of fruit trees and agricultural crops are established, which are usually below market values. It is recommended that as far as possible they be adjusted taking market values into consideration. The district governments are responsible for the approval of resettlement plans and monitoring of its implementation, together with the provincial directorates for Land and Territorial Development. As per the Resettlement Regulation Capacity at the district level is variable, but is often low, mainly because of the limited staff and lack of properly trained personnel, which results in a weakness in the system. The requirements for physical resettlement are demanding in terms of housing size and infrastructure provision and should therefore be avoided whenever possible. It shall include a broad consultation process during preparation and implementation of the Resettlement Plan. These plans are approved by the district governments after the multisectoral monitoring technical commission issues a favourable technical report. As per the EIA Regulation, the Resettlement Plan approval is a condition for the issuance of the environmental 25 license for installation, while the issuance of the environmental license for operation is conditional on the Resettlement Plan implementation (Decree 45/2005). The Mozambican cultural heritage is legally protected by the Cultural Heritage Law (Law 10/88) that comprise the protection of tangible and intangible assets of the Mozambican cultural heritage. In addition, the Regulation for the Protection of Archaeological Heritage (Decree 27/94) establishes that works involving excavation “must include preliminary archaeological prospection and safeguard archaeology work in the area covered by the works and must include for this purpose in the respective budget an allocation of not less than 0,5 per cent of the total cost of the works" (Art. 12). However, there is no capacity for verification of compliance with the law. The Water Policy promotes the participation of private sector in the supply of water to the population in peri-urban areas and expansion areas where the public service. The lack of capacity of the public service to cover new areas of residential expansion led to the development of private providers who began to play an important social role. The Regulation of the Licensing of Drinking Water Supply by Private Providers (Decree 51/2015) establishes the licensing process (by the municipality or district administration), detailing the responsibilities of public entities (DNAAS, ARA, AIAS, FIPAG and AURA), licensing requirements, PWP rights and duties. It defines three alternative arrangements for areas where public services expansion overlap PWP areas, namely partial or total integration of the PWP by the public services or coexistence. The regulation provides for PWP compensation in case of revocation of the license for public interest (integration), provided that the provision of the service and the quality of water supplied are proven. There is therefore a wide range of policies and legal instruments that aim at social equity and the protection of vulnerable groups and protection of cultural heritage. However, their awareness and application are often limited, conditioned by cultural issues, as by the patriarchal system as well as due to lack of institution capacity to supervise and ensure legal compliance. No specific social provisions were found in the water sector legal framework regarding gender equality. To be noted that the MOPHRH is under a process for development of a Gender Strategy, that will cover the water sector. 4.2 Relevant Institutional Framework for the Programme 4.2.1 Overview The 1991 Water Law (Decree 16/91) provides the legal basis for strong intersectoral coordination. An institutional framework has been enabled through the National Water Council (CNA- Conselho Nacional de �guas), established under the Water Law. The CNA is an advisory committee about issues related to water management and the implementation of water policy (DFID, 1999). It consists of the following members: • Ministry of Public Works, Housing and Water Resources • Ministry of Agriculture and Rural Development • Ministry of Foreign Affairs and Cooperation • Ministry of Industry and Commerce • Ministry of Mineral Resources and Energy • Ministry of State Administration and Civil Service • Ministry of Health • Ministry of Land and Environment In 1995, the GoM approved the first National Water Policy (NWP), which was revised in 2007 and 2016 (Resolution 42/2016). The 1995 NWP defined specific objectives to improve water and sanitation services and increase the degree of coverage in both urban and rural areas (SADC, 2003). Among the measures taken has been the decentralisation of water resources management to autonomous entities at the basin and 26 provincial levels19. According to the policy, the government is to define priorities, guidelines and minimum service delivery levels, but not deliver services (DFID, 1999). Integrated water management is promoted by the policy as a means of optimising the benefits to communities, while also considering environmental impacts and sustainability of resources over time. The principal objectives of the first NWP was as follows: • Satisfying basic needs, particularly of rural, low-income groups. • Participation of beneficiaries in water resource management and service delivery. • Recognition of the economic as well as the social value of water. • Decentralisation of water resource management and service delivery. • Supportive, not implementing, role for Government. • Allocation of water on principles of integrated water resource management. • High level of investment in water and sanitation, with the balance between investment for economic development and for poverty alleviation and improved public health. • Commitment to capacity building to ensure sufficient skills to implement the water policy. • Involvement of the private sector in service provision, subject to regulation. In support of these objectives, the GoM embarked on a sector reform process in urban areas, by implementing the Delegated Management Framework (DMF), which enabled the transfer of operational responsibilities for water supply to professional service providers, and by creating new sector institutions, including the Water Asset Holder Government Agency (FIPAG20), which manages the main urban water systems in the country; the Water Supply Regulation Council (subsequently renamed the Water Regulation Council) and, more recently, in 2019, the Water Regulatory Authority (AURA21). In 2009, the Water and Sanitation Infrastructure Administration (AIAS22) was created - a public autonomous entity that is complimentary to FIPAG, and which manages assets of small public water supply systems outside of FIPAG’s scope, including 130 small cities and towns and public wastewater and drainage systems in 152 cities and towns. To be noted that the Chibuto system (covered by this PforR), is part of AIAS assets, but its operation is under the responsibility of FIPAG, through AdRS. These reforms and the meanwhile defined Sustainable Development Goals resulted in a revision of the NWP in 2016, which now aims to a future where water is available in adequate quantity and quality for present and future generations, serving for sustainable development, poverty reduction and welfare and minimising negative effects of floods and droughts. The 2016 Water Policy aims to achieve, by 2030, the following main objectives: meeting the basic needs of human consumption of safe and reliable drinking water (which will be materialised through specific targets for urban, peri-urban and rural areas and should be in line with the Sustainable Development Goals of achieving universal and equitable access to safe drinking water for all by 2030); improve sanitation as an essential tool for the prevention of water-borne diseases (malaria, cholera, diarrhoea) and improve quality of life and environmental balance; use water efficiently for economic development; water for environmental conservation; reduce vulnerability to floods and droughts through a better coordination and planning; promote peace and regional integration and guarantee water resources for the development of Mozambique. The linkages between institutions responsible for the management of water supply in Mozambique’s water sector are shown in Figure 4. 20 Fundo de Investimento e Património do Abastecimento de �gua. 21 Autoridade Reguladora de �guas. 22 Administração de Infraestruturas de �gua e Saneamento. 27 Figure 4: Institutional roles and responsibilities in the urban water supply and sanitation sector. 4.2.2 Organisation and Responsibility of Key Institutions involved in the PforR The Ministry of Public Works, Housing and Water Resources (Ministério de Obras Públicas, Habitação e Recursos Hídricos - MOPHRH) is the government authority responsible for the water sector, namely water resources management and water supply, which is managed through two directorates: the National Directorate for Water Resources Management (DNGRH) and the National Directorate for Water Supply and Sanitation (DNAAS). Both directorates are responsible for developing public policies in the water sector, as well as strategies and the mobilisation of finance for water resources management and water supply systems at a national level. They are also both responsible for coordinating the different actors in the water sector, and participating in the preparation of legislation, regulations and technical norms and standards to promote the improvement of public water supply services to all people and the better use and management of water resources, including the decentralisation of water sector activities. The National Directorate for Water Resources Management (DNGRH)23 is responsible for preparing and implementing policies and strategies for the development, conservation and use of water resources in river basins, as well as the legal and regulatory framework for water resource management. Strategic plans include broad objectives such as actions necessary in the water sector to meet the UN Sustainable Development Goals24. The National Directorate for Water Supply and Sanitation (DNAAS25) is responsible for preparing and implementing policies, strategies, rules, regulations, technical specifications and programs for water supply and sanitation, and for defining the legal framework to support policies on public service water supply and sanitation and the sector's normative regime, based on the principle of decentralisation. Among other functions, it is responsible for promoting investments in the construction, maintenance and expansion of water supply and sanitation infrastructure and managing or delegating the management of national programs for water supply and sanitation. It is also responsible for harmonising plans and actions to ensure universal access to water supply and sanitation services and to promote and adopt methods to ensure access 23 Direcção Nacional de Gestão de Recursos Hídricos (DNGRH). 24 DNGRH (2017). An Action Plan of the Water Sector to Implement the Sustainable Development Goals – 2015 – 2030. Prepared with technical assistance from the World Bank and African Development Bank. 25 Direcção Nacional de Abastecimento de �gua e Saneamento (DNAAS). 28 to water, in the desired quantity and quality, considering the effects of climate change. DNAAS comprises two departments – Department of Water Supply (DAA) and Department of Sanitation. The DAA role in the regulation of the PWP should be highlighted, namely the preparation of the licensing regulation, the mapping, monitoring and capacity building actions, both for private suppliers and for municipal and district licensing authorities, and the preparation of technical standards for water supply and sanitation. Falling under MOPHRH is the Office of Studies and Projects (OSP), which has among its functions the coordination and analysis of studies for institutional development and investment projects in the fields of public works, housing and water resources, and the assessment of their feasibility. The OSP is also responsible for promoting studies on the economic, social and environmental impact of water infrastructure projects. Regional Water Authorities (ARA’s26) were established under the Water Law (Decree 16/95) and are the decentralised Regional Water Administrations responsible for the management of water resources. ARA is responsible for the management of the quantity and quality of water available for different uses, based on integrated, rational planning, set out in Water Basin Plans. It must also establish and maintain a registry of water uses as a part of a water resources information system. The area covered by the Urban Water Security Program is managed by the Southern Regional Administration (Administração Regional de �guas do Sul - ARA-Sul, IP), which is a public autonomous entity for the operational management of water resources and provision of services, under the auspices of the MOPHRH and the National Directorate of Water Resources Management (DNGRH). Decree 73/2020 describes the principles which constitute ARA-Sul’s mandate, which include a) environmental protection; b) adaptation to climate change; c) prevention and mitigation of floods and droughts; d) unity and coherence of the hydrographic basin management; e) rational and sustainable use of available water resources; f) polluter pays; g) user pays; h) conservation of water resources; i) profitability of hydraulic infrastructure; j) prevention of harmful effects of water; k) participative and integrated management. These principles provide the basis for the functions of ARA-Sul, with the following being noteworthy for this PforR: • inventorying water resources and water needs for maintaining a national water resource register • issuing of licenses and concessions for the abstraction and use of raw water (including licensing of private water suppliers), definition and implementation of structural measures aimed at flood protection and drought mitigation • implementation of measures for the protection of water resources • promotion of the sustainable use and harnessing of water resources, through monitoring, dissemination of legislation, awareness-raising campaigns and other appropriate means • operation, maintenance and inspection of infrastructure for water storage and flood protection in the public domain and the inspection of infrastructure in the private domain • drafting and implementation of raw water allocation regulations • declaration and imposition of water conservation protocols affecting the supply and use of raw water in emergency situations such as drought, contamination of waterways and other emergency situations. National Water Council (CNA27) was established in 1995 under the Water Law (Decree 16/95) as a consultative body to the Council of Ministers and an inter-ministerial coordination body for water 26 Administração Regional de �guas (ARA’s). 27 Conselho Nacional de �gua (CAN). 29 management policy, responsible for issuing opinions on relevant aspects of sectoral policy. The Ministry of Land and Environment is one of the ministries that take part in this council. Water Regulatory Authority (AURA28) was established under Decree 72/98 which transformed the Water Supply Regulatory Council into the Water Regulatory Authority and the Fund for Investment and Assets of Water Supply (FIPAG). This was done with the intention of improving supply efficiency and decentralising services through the establishment of the Framework for Delegated Management. AURA has among its responsibilities the regulation and supervision of the public water supply service, safeguarding the interests of the state and of consumers in an impartial and objective manner, ensuring the balance between the quality of the service provided and the economic and financial sustainability of the entities responsible for providing the service and promoting the protection of the environment and natural resources, as well as promoting the efficiency and effectiveness of public systems. Its responsibility to promote the principles of universal (socially fair) service, transparency, participation and the safeguarding of public health and the environment are reiterated in Decree 8/2019. AURA is responsible for defining the regulatory framework for service provision, including setting water supply tariffs, defining binding standards, and defining and applying fines and other sanctions to water supply service providers for non-compliance with the regulatory framework. It acts as a pre-arbitration forum for conciliation of interests between the consumer and the managing entities, as well as between the managing entity and the assigning entity. AURA is also responsible for regulating drinking water supply by private sector suppliers (Decree No. 51/15), which includes setting tariffs, resolving conflicts and protecting the consumer, as well as assessing the quality of services provided and recommending the renewal or revocation of the private operator’s license. As the regulatory authority, AURA is mandated to inspect the facilities of the regulated entities, request information and documents, suspend activities and close inadequate facilities that are directly associated with the provision of water services to the consumer. Fund for Investment and Assets of Water Supply (FIPAG29) falls under two ministries - the Ministry of Finance (MOF) and the Ministry of Public Works, Housing and Water Resources (MOPHRH30). FIPAG is a public institution with a national mandate, responsible for managing the public water supply services of the country's major cities, including all of those covered by the Urban Water Security Program. FIPAG has legal, administrative and financial autonomy. It is responsible for attracting and managing investments for the development of infrastructure in Mozambique's major cities, and for promoting a strong partnership between the public and private sectors. It aims to ensure the economic sustainability of water supply systems under its control, by monitoring the compliance of private operators in the water supply services, delegated by FIPAG, with their contractual obligations, or with a concession agreement, as in the case of water supply to the Maputo region, provided by the Maputo Metropolitan Region Water Utility (AdRMM31) and to the cities of Xai-Xai, Chokwe, Inhambane and Maxixe, provided by the South Regional Water Utility (AdRS32). Regarding private operators, FIPAG is responsible for providing the licensing authorities with its short, medium and long-term expansion plans, and for giving advice about the licensing of private operators. Maputo Metropolitan Region Water Utility (AdRMM) and South Regional Water Utility (AdRS), created respectively by Decree nº 33/2021 and Decree nº 34/2021, are commercial companies whose capital is fully under the control of FIPAG, which may sell 49%. Both have the responsibility of operating the water supply system under FIPAG ownership through a concession contract, with commercial, financial and administrative functions associated with the operation and maintenance of the system under the contractual terms. 28 Autoridade Reguladora de �guas (AURA). 29 Fundo de Investimento e Património do Abastecimento de �gua (FIPAG). 30 Ministério de Obras Públicas, Habitação e Recursos Hídricos (MOPHRH). 31 �guas da Região Metropolitana de Maputo (AdRMM). 32 �guas da Região Sul (AdRS). 30 AdRMM operates the water supply systems in the metropolitan area of Maputo (Maputo, Matola and Boane) while AdRS operates the systems of Xai-Xai, Chokwe, and Chibuto in Gaza Province, and Maxixe and Inhambane in Inhambane Province. While the role of AdRMM and AdRS is to operate the water supply systems built and owned by FIPAG, it occasionally becomes involved in small construction projects where demand or priorities dictate its intervention. AdRMM is the larger of the two concessionaires, directly employing around 1 000 people. It was created based on the former structure of the water concessionaire �guas de Maputo. Functionally, it is divided into a number of divisions. Divisions directly under the CEO are Communication, Legal, Audits and Water Quality. The technical services division includes four units - production, projects, maintenance and distribution. Environmental Management Unit is a newly created sub-unit within the AdRMM Projects unit. The sub-unit presently consists of a manager and four employees. It has a broad mandate, managing environmental and social performance throughout the organisation. It therefore supports a number of divisions. E&S policies and procedures are in their infancy. While the manager’s intent is to develop a full ESMS which applies to the entire organisation, it is not clear that the broad scope of E&S services in support of sustainable development is supported at senior management level, so the work done by the environmental services unit is presently constrained and fragmented. In interviews with the unit’s manager, it was mentioned that guidance from FIPAG would be helpful, possibly in the form of generic procedures which could be used by the concessionaire to standardise the approach between the parent company and the concessionaire, but to date this interaction does not exist. AdRMM’s concession agreement with FIPAG contains the following conditions related to sustainability and E&S performance: • The operator shall prepare Emergency Contingency Plan, Energy Efficiency Plan, Chemicals Management Plan, Loss Reduction Plan, Environmental Management Plan (based on the Merchant's environmental management system), Water Quality Management and Monitoring Plan. • With regard to the implementation of Approved Capital Projects, the Operator, among other things, must ensure that the environmental management plan is developed by Third Parties for the execution of the works and that the environmental management plan is applied and monitored. • The operator's Customer Services should receive and deal with customer queries and complaints, including those relating to water bills, meter anomalies or inaccuracies, meter readings, water quality and pressure. A complaints and response time database should be maintained, allowing for regular reporting of i) type of customer complaints, ii) type of complaints responded to and iii) response time to complaints. AdRS structure is based on the structure of the former provincial FIPAG’s departments for Gaza and Inhambane Provinces. Therefore, its operation is still based on FIPAG's general procedures. It does not yet have a specific unit and staff but intends to develop it, following FIPAG's experience. Ministry of Health (MISAU33) is the authority responsible for setting drinking water quality standards and performing compliance verification, including at the level of water supply systems, from the source and treatment to the point of delivery to consumers. Drinking water standards were published in 2004 by Ministerial Diploma 180/2004 that also establishes MISAU responsibility to ensure its implementation, defining responsibilities at central, provincial and local levels. Ministry of Land and Environment (MTA34) is the principal institution responsible for all aspects of land use and management to achieve sustainable development. This includes coordinating integrated development 33 Ministério da Saúde (MISAU). 34 Ministério da Terra e Ambiente (MTA). 31 policies, strategies and education related to conservation areas, forests, wildlife and rural development and the management of conservation areas and use of forests and wildlife. Directorates within MTA with a mandate linked to biodiversity, including water, include: • National Directorate of Environment (DINAB) - responsible for reviewing EIA Reports and environmental licensing as well as strategic environmental assessments. • National Environmental Quality Control Agency (AQUA) - responsible for environmental management, monitoring and auditing. • National Administration for Conservation Areas (Administração Nacional de �reas de Conservação – ANAC) is responsible for conservation of wildlife and management of conservation areas and all aspects of biodiversity conservation within conservation areas as well as administration and enforcement of regulations related to protected species. • National Directorate of Forestry (DINAF – Direcção Nacional de Florestas) is responsible for the planning and management of the national forest heritage, and for regulating forest exploitation and commercialisation, including commercialisation of endangered species of flora. • National Directorate for Land and Territorial Development (DNDT – Direcção Nacional de Terras e Desenvolvimento Territorial) regulates land management, resettlement and approval of large-scale land applications. Rural land administration is overseen by the Provincial Service of Geography and Cadastre. MTA is represented at provincial level by the Provincial Directorate of Territorial Development and Environment (Direcção Provincial do Desenvolvimento Territorial e Ambiente - DPDTA). DPDTA is the entity at provincial level responsible for environmental inspections. The Provincial Environment Service (Serviço Provincial do Ambiente - SPA) is subordinated to the Provincial Secretary of State and is responsible for issues related to environmental licensing. It was created in 2019, with the establishment of provincial decentralised governance (Law 4/2019), taking on responsibilities that were previously DPDTA's. SPA coordinates the preparation of a written opinion on Environmental Pre- feasibility Reports and Scope Definition reports (Estudo de Pré-viabilidade e Definição do Âmbito – EPDA) and Environmental Impact Studies and /or Addenda in coordination with other key provincial government institutions. SPA is the entity at provincial level responsible for undertaking environmental audits. Municipalities have various responsibilities specified under Article 25 of Law 11/97. Among other things, they are responsible for investing in water supply systems, social action (such as activities to support vulnerable groups) and environmental management (protection or restoration of the environment, afforestation, planting and conservation of trees, and establishment of municipal reserves). Where the national government invests in these areas, it must coordinate with the municipalities. It should also be noted that it is up to the President of the Municipality or the District Administrator to license the supply of water by PWP, requiring a consent from the MOPHRH when with more than 5000 customers. 4.2.3 Summary of Performance Constraints The institutional arrangements for the provision of water and sanitation services in Mozambique are diverse and fragmented, presently consisting of multiple government agencies, donors, civil society (international and local organisations), and the private sector. However, there is a clear division of roles between public and private entities responsible for urban water supply, namely between those responsible for defining the policy and legal framework, planning and operation of public supply systems, and regulating and supervising water supply. The existing constraints are primarily related to a lack of institutional capacity in most of the responsible institutions, which includes a lack of capacity to implement and maintain E&S quality management systems and evaluate the environmental and social risks of specific water supply proposals. FIPAG and the MTA are general exceptions to this rule, although they too have specific capacity limitations. 32 The lack of coordination between public institutions and municipalities in relation to water supply investment plans exacerbates limited E&S capability. In the relatively recent arrangement of environmental and social management at the provincial level, there is still some institutional conflict, leading to duplication of functions or gaps. Here, too, institutional fragility is evident, due in large part to a lack of trained human resources. 33 5 ASSESSMENT OF THE BORROWER SYSTEM AGAINST THE CORE PRINCIPLES 5.1 Core Principle 1: General Principle of Environmental and Social Management Program E&S management systems are designed to (a) promote E&S sustainability in the Program design; (b) avoid, minimise, or mitigate adverse impacts; and (c) promote informed decision-making relating to a Program’s E&S effects Applicability: Applicable, as the Program will support activities that have significant positive and potentially negative E&S effects. MTA: For the project components that involve physical development of infrastructure (mainly RA2), E&S control is through Mozambique’s national environmental policy and regulatory systems, which are adequate to manage the environmental effects of the PforR program. Environmental assessment procedures, prior to development approval, are entrenched in the country and are effectively implemented. The larger of the construction-related PforR activities, such as the pipe bridge construction on the Incomati and Umbeluzi Rivers, the Phase 2 expansion of the Sabié Water Treatment Works and the wellfields, main lines and DCs in Xai-Xai and Inhambane, and groundwater wellfield development are likely to be classified as Category B under Decree 54/2015, which will require the appointment of an independent registered environmental practitioner to prepare the assessments. While MTA has some known capacity and performance limitations, particularly in relation to monitoring and auditing of compliance, the institutional capacity is considered adequate to manage the expected risks associated with the PforR program. FIPAG: FIPAG will be the principal agency responsible for the elements of the program that involve major civil works. FIPAG’s capacity to manage E&S is steadily improving - it has experience of large civil works contracts and is well versed in its responsibilities for appointing and managing project engineers and contractors. The recently completed Greater Maputo Water Supply Project financed by the World Bank, has demonstrated that FIPAG is capable of meeting World Bank requirements for environmental and social safeguards in projects of a similar scope and scale to those being proposed under the PforR program. FIPAG has an E&S unit in the projects department, which is being broadened to create a more comprehensive unit that will also provide assistance in the planning and operations areas, in addition to project implementation. FIPAG’s development of an ESMS, which was first prepared in 2004 and updated in 2021, has culminated in the appointment of a full-time contracted specialist for two years, responsible for finalising all the systems documentation and building capacity in the organisation to implement it. The ESMS is designed to be compliant with ISO 14001 and includes specific guidelines for contractors to meet GIIP during construction. These include guidance for pollution control and resource efficiency, fair labour practices, occupational health and safety, grievance management (labour and community) and community safety and engagement. In addition, FIPAG has a Generic Environmental and Social Management Plan (ESMP), approved by the WB in June 2021, that has been attached to bidding documents providing a set of relevant guidelines for contractors, to prepare specific ESMPs. Overall, there is evidence that FIPAG will be capable of managing the risks associated with the construction of the large civil works to an acceptable international standard. There is a Grievance Redress Mechanism (GRM) in place for customers of public services, established in the conditions of the Concession Agreement and supervised by AURA. In addition, FIPAG is successfully implementing a GRM in north and centre regions, for WASIS II Project, which intends to be expanded to South and Maputo Metropolitan regions. The GRM Manual (approved by the Bank in 2020) includes procedures for labour and SEA/SH/GBV grievances. FIPAG/ADRMM/AdRS: At the level of systems planning and implementation, the PforR makes provision for extensive network development and restoration in the Greater Maputo area. It is not clear, at present, whether AdRMM/AdRS will be responsible for the prioritisation and detailed planning of the network extensions and the extent to which the other agencies will influence these decisions. The main issue of concern is the role played by PWP, which remains unclear even though they presently supply some 2 million users in the Greater Maputo area. The key stakeholder interviews conducted by the Bank suggest that there 34 remain differences of opinion in the responsible government institutions about how best to accommodate these PWP within future plans and programs for water supply in the Greater Maputo area, in a way which provides for their legitimate interests while maximising the efficiency and effective regulation of water supply services. The pre-eminent PWP association in the Southern Region, including the GMR (AFORAMO), expressed dissatisfaction with the implementation of a MoU signed between the association and government, implying in the interview that the government was not upholding their end of the agreement (see more detailed discussion below in Core Principle 6). There are some geographical opportunities that may contribute to a logical spatial division between the water supply systems provided by FIPAG/AdRMM and those by the PWP associations, since groundwater salinity in some parts of Greater Maputo precludes the installation of local groundwater systems and are therefore not suitable areas for PWP to operate (Figure 3). In other areas, where FIPAG’s systems overlap those of the PWP, there remains potential for conflict. FIPAG and AdRMM/AdRS will be responsible for a raft of activities under RA3 of the PforR which aims at water use efficiency (loss reduction). Most of these sub-components have been screened to be in line with government policy and are in support of sustainable urban water development practices, with potentially positive environmental and social outcomes, aligned with the Bank’s ESF ESS3 (refer to Section 3.1.1). While the activities involve mainly minor physical works, both AdRMM and AdRS lack E&S capacity which will need strengthening, particularly as they have an extensive interface with the public in undertaking these and their other responsibilities. Provision is made in the PforR for training of AdRMM and AdRS staff to ensure resilient projects and for the empowerment of women. Training and staffing need to consider E&S safeguards requirements. AURA: The lack of regulatory control over the activities of the PWP and disputes between public and private operators adds to the difficulties of systematic spatial planning and results in lack of efficiency in resource use, overlap or gaps in service provision, and difficulty in providing urban communities with an efficient and reliable potable water supply. RA3 of the PforR program specifically addresses this problem, including measures to strengthen the performance of the institutions responsible for the planning and implementation of sustainable urban water provision. The program will support AURA’s role in mediation of disputes, setting fair commercially viable tariffs. To be noted that AURA supervises the performances of the public operators’ grievance mechanisms and is developing its own GRM, to be tested in the first quarter of 2023. ARA-Sul: Groundwater resources fall under ARA-Sul’s area of responsibility. In this regard, the PforR program is mainly designed to improve ARA-Sul’s ability to effectively manage the sustainable use of groundwater, including the development of a piezometric network to provide aquifer data for the program’s target areas, the updating of hydrogeological maps and targeted monitoring programs for PWP boreholes as a means of tracking water quality changes over time. None of these programs has any direct, negative, environmental, and social risks, and impacts are expected to be positive. Constraints are mainly related to limited capacity in ARA-Sul to manage E&S issues. The proposed institutional strengthening of ARA-Sul provided for in RA3.4.3 of the PforR, which includes human resource development and training and talent recruitment programs, must therefore ensure that there is sufficient attention to building capacity to implement E&S safeguards. DNAAS: Under RA1 of the PforR, DNAAS will continue to implement the policy framework for integrating PWP, setting technical standards (provided for in the PWP licensing regulation) and developing a bulk water sales model. DNAAS will also undertake capacity building of the PWP licensors (municipalities and district administrations) and PWP. Under RA2, DNAAS will manage the process of awarding grants to PWP to improve their infrastructure and operating capacity. These activities all have potentially positive E&S outcomes if E&S safeguard requirements are integrated with them. The technical standards, for example, will provide the opportunity to include specific, practical, requirements for environmental and social management in the design, construction, and operation of urban water supply systems developed by PWP. DNAAS has been using E&S specialists in funded PIUs and technical assistance projects but has no environmental management specialists in-house. Two sociologists are on the technical staff who may be able to assist in social 35 components. It is recommended that environmental and social specialists are involved in the DNAAS RAs to ensure that E&S requirements are fully integrated into the program. Municipalities: At least in the Greater Maputo area, there are complaints about the delay in the PWP licensing process as well as mapping PWP areas of intervention, which has contributed to conflicts between PWP and between PWP and public providers. RA2 includes strengthening of municipalities’ capacity to effectively implement this licensing process, although it does not make safeguards training explicit, which should be considered if the municipalities are to play an effective role in integrated water supply management. 5.2 Core Principle 2: Natural Habitats and Physical Cultural Resources Program E&S management systems are designed to avoid, minimise, or mitigate adverse impacts on natural habitats and physical cultural resources resulting from the Program. Program activities that involve the significant conversion or degradation of critical natural habitats or critical physical cultural heritage are not eligible for PforR financing. Applicability: Applicable as the Program will support activities that might lead to impacts on wetland ecosystems and habitat loss. Initial screening for the Program indicates that no critical habitats or critical physical cultural resources are likely to be directly or indirectly affected. For RA2, which includes the Program’s major civil infrastructural works, the risks to natural ecosystems and physical cultural resources will generally be minor, and well within FIPAG’s capacity to manage effectively. All of the proposed civil works are located in areas where habitats are modified by human activity, principally rural subsistence cultivation and peri-urban and urban development. The pipe bridge crossings of the Incomati and Umbeluzi Rivers present the most significant direct construction-related risks, but the licensing processes under the environmental regulations are adequate to manage this, and will typically result in conditions of authorisation, including an ESMP, to address any specific impacts identified during the assessment process. FIPAG has the capacity to manage the implementation of the ESMP. For the operation of the Marien Ngouabi wellfields in Xai-Xai, there is a potential risk to a large nearby wetland known as Lake Longue. This risk has not been flagged in the PforR program and its significance is unknown since the likelihood of drying of the wetland due to groundwater drawdown has not been established. While some pump testing has been done there have been no topographical surveys, nor bathymetric surveys of the wetland, nor is there any understanding of the present ecological status of the wetland, the presence or absence of species of conservation significance, or any other factors that may influence an assessment of impact if the water levels in the wetland were reduced by pumping in the wellfield. Internal capacity to assess the risk is not available in FIPAG and it will need to be evaluated by groundwater specialists and through the legislated environmental assessment process. All result areas include activities that have the potential for long-term ecological benefits and improved climate resilience. RA2.5 will strengthen ARA-Sul’s capability to manage groundwater and surface water resources sustainably. RA3.1 includes an extensive loss reduction program, responding to data that that 56% of water distributed by FIPAG is either lost physically (26%) or is not paid for (30%). Every kilolitre of water recovered is a kilolitre less required from existing or new water supply systems, while payment recovery strengthens FIPAG’s ability to develop and maintain an effective professional water supply system and further develop their capacity to prioritise sustainable resource use. 36 5.3 Core Principle 3: Public and Worker Safety Program E&S management systems are designed to protect public and worker safety against the potential risks associated with (a) the construction and/or operation of facilities or other operational practices under the Program; (b) exposure to toxic chemicals, hazardous wastes, and otherwise dangerous materials under the Program; and (c) reconstruction or rehabilitation of infrastructure located in areas prone to natural hazards. Applicability: Applicable, as the Program will support activities that will involve civil construction, potentially affecting public and worker safety While the environmental assessment process and authorisations by the national regulator (MTA) include general requirements for worker and community safety, the implementation of effective health and safety systems for workers and the general public during civil construction works will rest primarily with the institutions responsible for the developments. Though, to be noted that there are specific provisions in the Regulation of Public Water Distribution and Wastewater Drainage Systems (Decree 20/2003). FIPAG will be responsible for all of the major construction works proposed in the PforR program. FIPAG ’s draft ESMS, being finalised by a specialist contractor, defines the roles and responsibilities of all parties involved in health, safety and environmental management, including the client, the engineer and the contractor. Minimum requirements for contractor’s staff in relation to OHS are set out. The contractor is expected to be certified to ISO 45001: 2018 Occupational Health and Safety Management System and any subcontractors who are not certified must adopt the OHS management system of the main contractor. The ESMS defines the systems and procedures that contractors must have in place, and the reporting obligations that must be complied with. In summary, contractors are required to develop, implement and maintain an OHS management system which: • Identifies all potential health and safety hazards that may occur on site, using the generic risk assessment developed by FIPAG for typical FIPAG projects. • Develops a risk register, based on the analysis of hazards. • Prepares contract-specific management procedures to minimise the identified OHS risks. A wide range of procedures are specified in the FIPAG documentation. • Applies the mitigation hierarchy in all activities, seeking to avoid hazards by using alternative methods in preference to mitigation and, as a last resort, PPE. • Discloses the content of the risk assessment to all employees. • Reports timeously on accidents and incidents, in accordance with GIIP. Contract workers are required to sign a code of conduct and the contractor must prepare a community safety plan as a part of their ESMP. Overall, FIPAG is well positioned to manage OHS and community health and safety issues that will arise under the Program. Capacity at FIPAG to implement the requirements of the ESMS and audit the contractor’s performance is adequate for most aspects of OHS, but a social specialist is required to manage community health and safety issues. For the smaller construction contracts involving network development, replacement and maintenance, AdRMM and AdRS will be the responsible institutions. These institution’s environmental and social management systems are weakly developed at present, and need strengthening even for the relatively minor occupational health and safety and community health and safety risks that their activities entail. ARA-Sul has responsibility for managing the water quality and safety of its main reservoirs, and of ensuring the ecological health of the river systems downstream of the impoundments. RA3.4 is intended to strengthen ARA-Sul’s capability to provide these services and includes the development of plans for reservoir 37 management, operation, environmental safety and ecological management, and internal and external emergencies. Some plans are already in place, such as the emergency plan developed for Corumana Dam during the recent civil works under the Greater Maputo Water Supply Project35 and an operating procedure to manage dam releases in an ecologically sustainable manner, but the maintenance and implementation of these (and other) plans will require additional organisational capacity. Provision for this must be made through the training and human resources development and talent recruitment programs included in the PforR. AURA will develop technical guides on public service requirements for water supply and sanitation while DNAAS will develop Technical Standards for PWP systems, both shall include E&S provisions aiming public and worker safety. 5.4 Core Principle 4: Land Acquisition and Loss of Access to Natural Resources Program E&S systems manage land acquisition and loss of access to natural resources in a way that avoids or minimises displacement, and assists affected people in improving, or at minimum restoring, their livelihoods and living standards. Applicability: Applicable, as the Program will support activities that might lead to physical displacement and/or loss of livelihood. As discussed above there is a national legal system in place that defines land use rights and regulates involuntary resettlement and compensation for loss of economical assets. FIPAG has previous experiences in preparing and implementing involuntary resettlement plans following legal requirements, as well as WB requirements (OP 4.12 and ESS 5). Resettlement Policy Frameworks (RPF) have been prepared for WB funded projects, as well as Resettlement Action Plans (RAP) and Livelihood Restoration Plans, when required. Specialised consultants have been hired to prepare RAP, as part of the EIA consultant hiring process or in a separate one. The management and monitoring of the RAP consultant is carried out by FIPAG's environmental unit. Services are also contracted for the implementation of the RAP, with monitoring being carried out by FIPAG's environmental unit, together with the region's operator. Therefore, there is already experience in the institution in dealing with stakeholders involved in a resettlement process, such as resettlement committees created for resettlement process monitoring at central, provincial, district and local levels, as well as with other authorities related to land use restriction, such as the National Road Authority (ANE), for authorisation of use of road reserve (as established in Land Law and specific regulation on use of land reserve). FIPAG’s generic ESMP includes provisions on Land Access and Compensation, stating the principle of avoidance and minimisation of acquisition and the need for preparation and implementation of RAP according to WBG ESS5 and national legal requirements. However, there is not yet a RPF to be applied for all activities, which will be prepared under the ESMS. In the currents E&S units FIPAG does not have social specialists as permanent staff to deal with resettlement and livelihood restoration, which is a weakness, considering the challenging usually associated with the management of these process and deal with social issues, including vulnerable groups. AdRMM has not been preparing resettlement plans. In case of displacement needs, it has sought assistance from local authorities to negotiate with affected people, not complying with the Resettlement Regulation. To be noted that the company has an insurance for compensation of no planned damages due to maintenance activities or even operation (such as rupture of a pipeline). As FIPAG, AdRMM does not have social specialist as permanent staff. Among the activities proposed for this PforR the main lines in Xai-Xai and Inhambane (under RA2) are the ones with the highest risk of needing economic, or even physical, displacement. These activities will be under 35 Financed by the World Bank (P125120). 38 the FIPAG’s responsibility. As discussed in 3.2.2, during the route design, alternatives were analysed in order to avoid and minimise physical or economic displacement. As possible, the main lines were designed along roads, to avoid and minimise adverse impacts, although there might be still risks of adverse impacts, mainly due to economic losses, but also few physical losses. The ESSA Guidance Note states that it should be excluded from PforR financing activities that involve “Land acquisition and/or resettlement of a scale or nature that will have significant adverse impacts on affected people, or the use of force eviction�. The guidance does not define any threshold for large scale but considers that the significance of adverse impact is linked to the client's alignment with core principles and its ability to carry out land acquisition and resettlement in accordance with policy principles and requirements. Considering the potential physical and economical losses and current FIPAG’s capacity to manage resettlement processes the risk is assessed as substantial, requiring the implementation of specific measures before the implementation of the main line projects. Therefore, to ensure proper management of the resettlement and livelihood recovery process, the following will be required to strength the existent system: • Preparation of Resettlement Policy Framework (under the ESMS), defining the principles and procedures to be followed in resettlement plans. • Hiring a social specialist to lead the process of hiring consultants for the preparation of the plan and to monitor its implementation. The implementation of the Xai-Xai and Inhambane shall be conditioned to a positive Bank’s evaluation of FIPAG's performance in social matters. 5.5 Core Principle 5: Indigenous Peoples and Vulnerable Groups Program E&S systems give due consideration to the cultural appropriateness of, and equitable access to, program benefits, giving special attention to rights and interests of Indigenous Peoples/Sub- Saharan African Historically Underserved Traditional Local Communities and to the needs or concerns of vulnerable groups. Applicability: Applicable, as the program will directly support activities in peri-urban and rural areas with poorer population, where there are vulnerable groups identifiable under the Bank Policy. There is a risk that the most vulnerable families will not be covered by the public service because they are unable to pay for installation services and consumption. FIPAG/AdRMM/AdRS have mechanisms to support these situations such as subsidising the meter installation for yard tap and the application of the social tariff, as a fixed monthly value for up to 5 m3 consumption (about 167 l/day). Regarding the social tariff, its application is only based on consumption, which does not necessarily cover the all the most vulnerable families, mainly in cases of large families. Additional criteria should be considered for the application of the social tariff, as for instance the cases of beneficiaries of social protection, already validated as vulnerable families by the social protection authority. Under RA3.4 AURA will revise and develop criteria for the definition of fairer socio-economically sustainable rates and tariffs, which will contribute to improving the equity of public service. In AdRMM the existence of the figure of the consumption analyst, responsible for the monthly meter reading, but also for providing assistance to the consumer, has created a closer relationship with the consumer, which is extremely relevant in the case of vulnerable families as a channel for complaints as well as to receive payment of the tariff, for those who have difficulty in accessing payment sites. The customer support line number is on the water tariff invoice, although during the field visit it was found that there is a lack of awareness of this channel, which requires further dissemination among consumers. 39 Also important is the existence of Communities’ Project Cabinet under the AdRMM’s Commercial Department for development of initiatives in communities aiming service improvement. The pilot project of pre-paid meters and the existing alternative fare payment systems (including digital payment and home payment) are examples of innovations with positive impacts for vulnerable groups. Currently the water supply coverage indicator does not allow the identification of the coverage of vulnerable households, which should be a relevant indicator to be regularly assessed. Similarly, the identification of expansion areas should take into consideration the spatial distribution of the poverty rate, which is still not the case. AURA should have a relevant role on this, studying the possibility of creating coverage indicators that encompass the most vulnerable families, such as those in extreme poverty, headed by women, or composed of elderly people, among others. AURA should also define goals and monitor the evolution of the water supply coverage in the poorest areas. In addition, there would be an opportunity for AURA to develop a fairer mechanism for assigning the social tariff, not only based on consumption, but also integrating other relevant parameters, such as proof of social protection beneficiary. PWP does not receive any state’s subsidy to apply social tariffs. Since they work in delimited areas and have close contact with customers, they can more easily identify situations of vulnerability that may deserve the application of reduced rates. It would be recommended that AURA study the possibility of granting subsidies to PWP, to be applied in the most vulnerable households. Under RA2 and RA3, the Program includes activities aimed at women empowerment in water resources management (see Sections 2.2 and 2.3). These activities would contribute to women empowerment, although they mainly focus on activities usually performed by women. The program should also promote the empowerment of women by integrating them in technical activities or management positions, usually not assigned to women. This can be achieved by promoting the participation of women in the talent recruitment programs foreseen in RA2.5.3.5. Currently the gender distribution in management positions in the implementing agencies is generally low, with the highest proportion of women in AURA (Figure 5). Figure 5: Women in management positions in the main institutions responsible for the PforR (in percentage). 40 The Women Empowerment Programs to be implemented in ARA-Sul, AdRMM and AdRS will contribute to better gender equity. Capacity building and talent recruitment programs to be undertaken will promote the participation of women. The Program includes the preparation of a Gender Strategy for ARA-Sul, although considering that MOPHRH is currently preparing a Gender Strategy for the sector, with Bank support through the Mozambique Urban Sanitation Project (P161777), it would be better to consider the preparation of a specific Gender Action Plan for ARA-Sul, in line with the MOPHRH’ strategy. The preparation of this action plan should include a stakeholder engagement process, including among others Women Empowerment NGOs and the women committees already involved in water resources management. As discussed in Section 3.2.2 there is a risk of GBV/EAS/SH associated with the construction works. The main activities involving civil works will be carried out by FIPAG, which already has some measures in place to manage this risk. FIPAG’s generic ESMP, which is attached to bidding documents, includes some provisions for GBV prevention which are relevant mechanisms to manage this risk, namely the following measures: • Contractors are responsible to ensure that all employees are duly trained against GBV/SEA/SH and that they sign a code of conduct. • Contractors shall prepare a GBV and SEA action plan and a code of conduct to be signed by every employee in the project. • Site location and the construction camp and proposed management measures should be such to prevent GBV/SH/SEA. • Contractor’s camps with Suitable sanitation facilities, adequate for the number of staff on site and respecting gender in order to reduce the risk of GBV/SH/SEA. FIPAG is currently developing a mapping of service providers for GBV, under the WASIS II Project for centre and north regions, although intends to expand in short-term to national level, which will be very helpful for reference to survivors. The existing GRM includes procedures to deal with of SEA/SH allegations. The expansion to South and MM regions will require training of helpline operators and social workers in guiding principles for safe and ethical handling of SEA/SH allegations (confidentiality, survivor centrality and safety). In addition, the lack of a permanent social specialist to monitor the implementation of GBV prevention measures and management is a major issue that must be addressed in the short-term. Under this Program AdRMM and AdRS workers will also have direct contact with communities and customers during maintenance works, meters installation or customers assistance. Neither of these operators have yet frameworks to address SEA/SH. The AdRMM Code of Conduct for workers does not include any reference to SEA/SH, despite the Mozambican context of GBV. This is a weakness that must be properly addressed, namely through the development of specific awareness and training for workers and inclusion of these aspects in the code of conduct to be signed by the workers. In addition, workers should be allowed to use the existent GRM to report EAS/SH allegations, as soon as the GRM is prepared for it. This should be communicated in training sessions and through posters to be distributed in the workplace. The lack of social specialist in FIPAG, AdRMM and AdRS is considered a relevant weakness that has to be addressed in short-term. The implementation of the main lines in Xai-Xai and Inhambane, which are considered to be the activities with higher SEA/SH risks shall be conditional on prior strengthening of FIPAG’s performance on this matter, namely after hiring a social specialist and implementing the GBV/ SEA/SH actions under the action plan (see section 7). 41 5.6 Core Principle 6: Social Conflict Program E&S systems avoids exacerbating social conflict, especially in fragile states, post-conflict areas, or areas subject to territorial disputes. Applicability: Applicable, as there is a context of social conflict resulting from FIPAG’s network expansion to areas already covered by private water providers, resulting in loss of infrastructure and customers by the PWP, who have already threat with cut in water supply. As discussed in Section 3.2.2 there is a risk of exacerbating conflict between FIPAG and PWP in the case of overlapping of service areas, which could result in impacts for the communities (if for instance PWP decides to shut down the water distribution, as threatened in the past) and consequently in reputational risks for the Bank. The water supply legal framework promotes the complementarity between public and private service and clearly defines the responsibilities among involved public entities in the PWP licensing process as well as PWP’s rights and duties (see legal framework in Section 4.1). There appear to have been deficiencies in the implementation of the Regulation of the Licensing of Drinking Water Supply by Private Providers, particularly regarding the exchange of information between FIPAG and the licensing authorities, in respect of FIPAG expansion plans, and limits on areas served by PWP. There has been some weakness on the part of FIPAG in communicating with local authorities about expansion plans in a timely manner. Municipalities have weaknesses in delimiting PWP service areas, which has contributed to conflicts between PWP and challenges in managing conflicts with the public provider. The PWP complain about the lengthy licensing process, which contributes to the existence of illegal PWP. AURA has been playing the role of mediator of the conflict, as provided for in its duties. However, the lack of financial and human resources has been a constraint in the performance. The Program includes institutional strengthening of AURA, including the development of mediation tools for potential conflicts and relationship between Public Operators and Private Operators (RA3.4.1) which will be relevant for the strengthening of its performance as a mediator in this conflict. The MoU signed in December 2021 was an important step in the conflict resolution, although the slow implementation of the agreed measures and the lack of strong engagement between the parties is resulting in a lack of trust between the parties involved. AURA plans to carry out a study on the different profiles of PWP in the short term, which will be the basis for the preparation of guidelines and standards for PWP, to be developed by DNAAS, as well as for the definition of bulk water sales tariffs. The operationalisation of the bulk water supply model (with conditions acceptable to PWPs) will make it possible to integrate PWP systems, as they will receive treated water from regional companies and keep the markup on the downstream sale to their current and additional customers, prior to the expansion of the utilities network into areas where the small providers are operating. In the meanwhile, FIPAG is already implementing a project pilot to sell bulk water, which is not well accepted by AFORAMO (one of the PWP associations). This indicates the need for the preparation and implementation of a strong and comprehensive SEP. As agreed in the MoU, in areas where only private service exists, FIPAG may only invest in higher components of the WSS, as far as (and including) the main lines. Expansion in the distribution system would be limited to areas where PWP are not operating, such as areas with brackish water where groundwater supply is not desirable. These conditions must be met during the implementation of the Program. This risk is substantial and shall be properly handled, through a stakeholder engagement and mediation process and the effective and prompt implementation of the agreed measures. 42 6 CONSULTATIONS AND DISCLOSURE During the preparation of this ESSA internal meetings were held with the implement agencies - Authority (ARA-Sul), the Fund for Investment and Assets of Water Supply (FIPAG), Maputo Metropolitan Region Water Utility (AdRMM), South Regional Water Utility (AdRS), the Water Regulatory Authority (AURA) and the National Directorate for Water Supply and Sanitation (DNAAS). Additional meetings were held with the National Directorate for Water Resources Management (DNGRH) of the Ministry of Public Works, Housing and Water Resource Management (MOPHRH) and Association of Water Providers of Mozambique (AFORAMO), which is one of the largest PWP associations. A consultation meeting was held on February 7 in Maputo, with possibility of virtual connection. Invitation letters with attached ESSA Executive Summary (in Portuguese) and a link to the draft ESSA were sent to a total of 54 stakeholders, including non-governmental organizations, development funding institutions, water sector entities. The meeting was also adverted in the newspaper with links to access the documents on consultation. A total of 36 participants (24 in the room and 12 virtual) attended the consultation meeting, mostly from entities in the water sector (FIPAG, AdRS, AURA, ARA-Sul). Received comments were addressed in the final ESSA. 7 INPUTS TO THE PROGRAM ACTION PLAN This section summarises the measures that the ESSA team recommends be included in the Program Action Plan and should be executed during program implementation to address the gaps identified above between the program system and the PforR core principles and key elements as well as to address any capacity shortcomings. The recommended actions of the ESSA are included in Table 4. Table 4: Contribution to the program action plan. SN. Action description Responsible Deadline Completion measures/ party Indicators Environmental and Social (ES)Actions ES-1 Establishment of an E&S management Unit FIPAG Before starting ES management Unit within FIPAG, with clear responsibilities and the PforR established, with roles for construction and operation phases. implementation permanent staff. ES-2 Finalisation and adoption of an ESMS Manual FIPAG Year 1 ESMS Manual approved (following ISO 14001 or WBG guidelines), and under including among others, OHS standards to implementation. ensure GIIP by the construction contractors and the Resettlement Policy Framework. ES-3 Hiring of a social specialist with a minimum of FIPAG Before starting Social specialist hired. 5-year work experience in resettlement plans, civil works gender and GBV, to be part of the E&S Unit. ES-4 Expansion of FIPAG’s existing Projects GRM to FIPAG Before starting GRM under the South and Maputo Metropolitan Areas, civil works implementation in and its integration in the general GRM. South and Maputo Metropolitan Areas. ES-5 Training of helpline operators and social FIPAG Before starting Helpline operators and workers in guiding principles for safe and civil works social workers trained ethical handling of SEA/SH allegations in SEA/SH guiding (confidentiality, survivor centrality and safety). principles. ES-6 Implementation of an awareness campaign for FIPAG Before starting GBV/EAS/SH awareness workers on GBV/EAS/SH and signature of AdRMM civil works campaign. AdRS 43 SN. Action description Responsible Deadline Completion measures/ party Indicators Codes of Conduct by all workers, with specific provisions on GBV/EAS/SH. ES-7 Preparation and implementation of a strong AURA Year 1 SEP being implemented SEP to manage the conflict between FIPAG and and documented. PWP. ES-8 Preparation of Technical Standards for PWP DNAAS Year 1 Ministerial diploma systems, including E&S provisions aiming at approving technical public and worker safety and proper standards published for management of wastes and hazardous PWP systems, including substances, based on inputs from E&S E&S provisions based specialists. on E&S specialist input. ES-9 Preparation of TORs samples for E&S FIPAG Year 1 TORs samples for E&S assessments of construction and rehabilitation AdRMM assessments works of water supply systems AdRS ES-10 Environmental licensing of civil infrastructure FIPAG Before starting Approved EAs under projects under Decree 54/2015 and AdRMM civil works Decree 54/2015. implementation of management requirements AdRS defined in these studies and in the license ARA-Sul requirements. ES-11 Restructuring the role of AdRMM’s E&S unit to AdRMM Year 1 Organisational provide services to all departments as well as structure revised. Staff strengthening the capability of the unit to capacity increased. ensure ability to manage civil maintenance ESMS in place. contracts. ES-12 Establish and maintain an E&S unit in AdRS, AdRS Year 2 E&S unit created with similar to the AdRMM E&S unit, with E&S staff, E&S staff; Staff capacity who progressively define and implement E&S increased. E&S procedures for the establishment of an ESMS. procedures in place. ES-13 Preparation and implementation of a RPF and AdRMM Year 1 RPF and E&S screening a procedure for environmental and social AdRS procedure in place. screening of projects. ES-14 Inclusion of specialist aquatic impact FIPAG Before starting Specialist investigation investigations in Xai-Xai Marien Ngouabi civil works undertaken and wellfield environmental assessment to mitigated impact of low ascertain risks to biodiversity in Lake Longue. significance. ES-15 Preparation of ToRs for studies on surface and ARA-Sul Before issuing TORs with E&S groundwater resource management and of tenders requirements following minor civil construction works to include E&S GIIP, prepared by E&S requirements following GIIP, prepared by specialists. recognised E&S specialists. ES-16 Preparation and implementation of E&S FIPAG Every year Annual report of E&S training for staff, taking in consideration the AdRMM during the training. potential E&S effects identified for the PforR AdRS PforR activities. ARA-Sul implementation DNAAS AURA ES-17 Promote women empowerment through the FIPAG During the Annual report of promotion of their participation in capacity AdRMM PforR women participation in building and jobs/tasks that are usually not AdRS implementation capacity building and in allocated to them, including in technical and ARA-Sul technical and management positions and in civil works. DNAAS management positions, AURA as well as in the civil work’s workforce. 44 45 8 REFERENCES DFID (1999). Water law, Water Rights and Water Supply (Africa). Mozambique - Study Country Report. Cranfield University, Silsoe, August 199. DNGRH (2017). An Action Plan of the Water Sector to Implement the Sustainable Development Goals – 2015 – 2030. Prepared with technical assistance from the World Bank and African Development Bank. Government of Mozambique (2015). National Strategy and Action Plan of Biological Diversity of Mozambique (2015-2035). Prepared by the Ministry of Land, Environment and Rural Development (MITADER). IUCN (2015). Red List of Threatened Species. https://www.iucnredlist.org Massinga, A. and Hatton, J.C. (1996). Status of the Coastal Zone of Mozambique. In World Bank (1996), Proceedings of the National Workshop on Integrated Coastal Zone Management in Mozambique. SADC (2003). Southern African Development Community (SADC). Mozambique Water Policy Review. 30 June 2003. 20 pp. SADC-GMI (2019). Gap Analysis and Action Plan – Scoping Report: Mozambique. SADC GMI report: Bloemfontein, South Africa Tello, J. (1973). Reconhecimento Ecológico da Reserva dos Elefantes do Maputo. Veterin. Mocamb. Lourenco Marques, 6 (1): 19–76. World Bank/Profor (2016). A National Biodiversity Offset System – A Roadmap for Mozambique. World Bank (2022). Data Portal. Urban population growth (annual per cent) – Mozambique. link: https://data.worldbank.org/indicator/SP.URB.GROW?locations=MZ 46 ANNEXURES ANNEXURE 1 Summary of Key Informant Interviews ESSA Meeting - FIPAG Date: 12/09/2022 Venue: FIPAG Participants Nordino Ticongolo (Chief of Department of Studies, Projects & Environment – Great Maputo Captine Ernesto (Dept of Planning, Monitoring and Project Serafino Mucova (ES consultant for WASIS Project) Tivi Fumbeco (ES safeguards technician – Investment Project – WASIS Project) João Henriques Bongeca (Dept of Studies, Projects and Environment) Helder Deus (Chief of Department of Infrastructure Development) Mark Wood (WB Environmental Consultant) Madalena Dray (WB Social Consultant) Organisational There is an ES unit under Great Maputo Department and other under Project & Investment Structure Department, the latter responsible for projects in the remain cities with FIPAG activities. The Great Maputo ES unit is headed by Nordino and has an internship. The ES unit under the Project & Investment Department has four permanent environmental staff, besides the WASIS ES Consultant. There are no social specialists in neither of these units. FIPAG has Central Services for Operation that oversees AdRMM operation, although there is no ES specialist in that service, only chemical engineer to look to the water quality monitoring. The Board of Directors intends to create a central environmental unit, centralizing all ES activities, integrating the project, construction and operation phases. ES Management FIPAG has already an Environmental Policy (already shared dated of August 2022) The EIA Regulation (Dec 45/2005) defines that pipelines above 500 m diameter and more than 10 km length are classified under Category A. Category B activities includes water supply systems and WTP, not being identified any thresholds. FIPAG intends to include in the PforR a permanent crossing bridge of Incomáti River and Umbeluzi River, both with about 1000 m diameter, which could be categorised as category A due to the sensibility of the riverine systems. FIPAG has a generic ESMP covering both construction and operation phases, that is attached to contracts with contractors. FIPAG does ES screening for all projects followed by EIA process for environmental licensing Boreholes projects usually includes hydrogeological studies which provide recommendation of maximum abstraction flows, during operation to avoid saline intrusion. These studies are integrated in the ESIA/ESMPs. A draft ESMS Manual was prepared by an ES FIPAG’s consultant for WASIS Project, who is no more in the organisation. A new ES consultant that was recently hired for WASIS II Project for two years will assist Nordino in the revision of this Manual. He is following IFC guidelines (including the IFC Handbook for ESMS) and ISO14000. The WASIS II SEP and RPF will be revised to be integrated in the ESMS. A list of procedures (including biodiversity, OHS, armed security) to be included in the ESMS was already prepared by the consultant and will be shared with the consultants. (not yet shared) The ESMS shall apply for all FIPAG’s activities and not only for projects funded by IDFs. Stakeholder FIPAG has been undertaking public participation during the EIA process following the Engagements and national guideline on PPP in EIA. Grievance Mechanism FIPAG has been developing a GRM with WB assistance under the WASIS Project. A GRM Manual was prepared (already shared) and its implementation started in 2021. The GRM has as entrance channels a website platform, green lines (one line per WASIS city and a ESSA Meeting - FIPAG general line). Dissemination campaigns were undertaken in all the WASIS cities (not include cities in the south region or great Maputo). The GRM is dealing with grievances both for construction and operation phases in these cities. In future this GRM might be used for other FIPAG projects. AdRMM has also a GRM that is oversee by FIPAG’s operational department GBV FIPAG has prepared ToR for consulting services for mapping of GBV service providers. The mapping shall cover all FIPAG’s intervention area. Conflicts In Maputo and Xai-Xai there are small water providers in conflict with FIPAG/AdRMM. AURA is mediating the conflict. One of the agreed measures is the supply of bulk water to the private providers, under certain standards. Capacity Building The current ES Consultant will start in September six packs of trainings for key ES staff, to be replicated by the key ES staff for other FIPAGs employees. (training plan/manual to be shared) ESSA Meeting - AdRMM Date: 12/09/2022 Venue: AdRMM Participants: Arone Tivane (Head of the Projects and Technical Support Department) Lidia Chiloveque (Head of the Environmental Management Unit) José Henriques (staff Environmental Management Unit) Mark Wood (WB Environmental Consultant) Madalena Dray (WB Social Consultant) Organisational AdRMM is an independent organisation that operates FIPAG assets, under a Cession Structure Agreement. The Assignment Agreement with FIPAG includes delegated works, that are prepared and build by AdRMM, such as small tertiary network expansions or urgent works. AdRMM prepare its projects and submit to FIPAG for approval. Recently AdRMM was also involved in the construction of standpipes in rural villages along the Corumana main trunk pipeline to reduce the risk of its vandalisation by the communities that are not served along this line. Other civil works might include building rehabilitation, such as for the clinic, currently ongoing. These works and maintenance works are carried out by subcontractors or by its own workers (total of 1000 workers). The company is like a contractor with own workshops and equipment. Large, planned maintenance works are under FIPAG’s responsibi lity. AdRMM organigram is split in three areas/pelouros: Director, Technical and Commercial. The water quality control and the communication & institutional relations are under the Director area. There is a Community Projects Unit within the Commercial area that deals directly with communities aiming to identify innovative systems to be implemented (such as prepaid meters that are being tested under pilot project with about 5000 houses). Currently there are several electronic platforms for payment, besides the possibility of payment in shops or through consumer analyst, that reads the consumption and can directly charge the consumer. Under the Technical Area there is an Environmental Management Unit, created in January 2022 and currently with four staff (no social specialists). It has been very challenging to have the engagement of the heads of all the directorates for the preparation and implementation of the ES procedures, as the Environmental Management Unit is under a specific Department. ES Management AdRMM is responsible for the ES management of all the assets operation. It was prepared and approved an Environmental Policy (already shared). Environmental procedures have been progressively being prepared and implemented, prioritizing the safety aspects (use of PPE, record of incidents, emergence fire response, risk management, solid wastes management - already shared). These procedures have ESSA Meeting - AdRMM been attached to subcontracts’ ToRs. A new procedure for environmental management of activities is under development. It would be better if FIPAG had already an ESMS under implementation to be followed by AdRMM and in all other cities that operates FIPAG’s assets. The Umbeluzi WTP has an environmental license for operation issued in 2019 for AdRMM and the Corumana WTP and water supply system has an operation license issued for FIPAG. AdRMM has not been undertaken ESIA processes for delegated works. This is now under the mandate of the ES unit. The unit is also responsible for the OHS of workers, ES specifications for subcontractors Stakeholder AdRMM has a GRM mechanism with a green line. The number is identified on customer Engagements and invoices. Grievance Mechanism As per the Cession Agreement and AURA requirement, AdRMM has 10 days for response of any grievance. Grievance reports are monthly sent to FIPAG. OHS and community There is a procedure for use of PPE and for community safety during works safety There is a specific training plan on OHS. Resettlement and AdRMM has an insurance for compensation of no planned damages due to maintenance Compensation activities or even operation (such as rupture of a pipeline) In case of a planned intervention the engagement with the local authorities (municipalities and district administrations) is requested for identification of the need of compensation and for assistance in the negotiation. No compensations have been provided to informal sellers due to temporary interruption of economic activities. No Resettlement Management Plan have been prepared. GBV The company has a Code of Conduct for workers although it does not cover GBV/SEA/SH. Conflicts AdRMM is trying to convince the water private providers (WPP) to by AdRMM bulk water at a lower cost. This water has better quality and the WPP could save energy costs. WPP could have as advantage the provision of 24-hour service, complementing AdRMM service. AdRMM water tariff is lower than the WPP tariffs. ESSA Meeting – ARA-Sul Date: 13/09/2022 Venue: ARA-Sul Participants: Delário Sengo (Head of Central Autonomous Department of Hydraulic Works and Maintenance) Lizete Dias (Head of Central Autonomous Department of Water Resources) …… (environmental technician) Mark Wood (WB Environmental Consultant) Madalena Dray (WB Social Consultant) Organisational 1. The Central Autonomous Department of Water Resources has a Hydrology & Structure Environmental Unit responsible for water quality management. This structure is replicated in the Basin Management Units. At central level there is one environmental staff in this unit. 2. The Central Autonomous Department of Hydraulic Works and Maintenance has one environmental specialist responsible for supervising of contractors’ OHS. ES Management 3. There is no ESMS, ES Policy, procedures, or ES specifications for contractors. 4. ARA-Sul has experience in working with WB and AfDB ES requirements 5. ARA-Sul has a monitoring network of piezometers (including around FIPAG wellfield, complementing FIPAG’s monitoring). ESSA Meeting – ARA-Sul 6. There is also water quality monitoring network with 64 stations (including in the piezometers) where samples are taken quarterly. 7. Licenses for boreholes and surface water abstraction are under ARA-Sul responsibility. 8. As per the existing regulation, ARA-Sul issue licenses for groundwater exploration and exploitation. Private water supply providers are required to have boreholes licensed by ARA-Sul, prior to apply for the license of water supply service in the municipalities/district administration. This regulation establishes measures to avoid borehole contamination, including technical standards for boreholes. Stakeholder 9. There was an experience of GRM implementation in Corumana Project, which is Engagements and being managed by Corumana staff. Grievance Mechanism ESSA Meeting – AURA Date: 14/09/2022 Venue: AURA Participants: Suzana Saranga (AURA Board Chairman) Julieta Paulo (Director for Development of regulation instruments – AURA) Humberto Gaze (Chief of Director Cabinet - AURA) Mark Wood (WB Environmental Consultant) Madalena Dray (WB Social Consultant) Organisational 1. AURA has the mandate to oversee the WSS services, which includes the Structure establishment of regulations and standards and supervision of water supply operators and providers, with power to impose sanctions. 2. AURA has three regional delegations – north, centre and south, with a total of 50 workers. 3. There are also AURA’s local representatives in municipalities and districts, individuals with who AURA have a contract agreement for representation. 4. There is low monitoring capacity in the field. Vulnerable groups 5. AURA does not participate in the selection of FIPAG’s expansion areas. 6. The current evaluation indicators do not allow to identify the coverage of poorest households. A proposal to improve the current coverage indicator to assess gender issues and vulnerable groups would be welcome Stakeholder 7. A mechanism to receive complaints via hotline and email is being prepared and will Engagements and be tested in the first half of 2023 (AURAnet) Grievance Mechanism 8. AURA evaluates the indicator of the operator’s response to grievances. As per the contracts, they have 10 days for response. Water quality 9. AURA monitors the water quality of the distribution network by checking the results of water analyses carried out by the operator/provider and if necessary, using analysis kits and complementary laboratory analyses. Conflict 10. AURA was part of the commission created to mediate the conflict between FIPAG and private providers, which also included representatives of MOPHRH and AFORAMO, which resulted in a MoU 11. AURA is preparing ToR for a diagnostic study on private water providers. It was considered that will be important to include a stakeholder engagement specialist as a strong stakeholder engagement process will be crucial to achieve conflict resolution. ESSA Meeting – AFORAMO Date: 15/09/2022 Venue: AURA Participants: Francisco Guambe (vice-president of AFORAMO) Nelson Cumaio (member of AFORAMO) Mark Wood (WB Environmental Consultant) Madalena Dray (WB Social Consultant) Conflict 1. There is an improvement in the relationship with the government since the signature of the MoU in December 2021, although there is a delay in the implementation of the agreed measures and little dissemination of the MoU beyond the Maputo metropolitan area, which is causing some discredit in the process. 2. There is lack of capacity and/or willing of local authorities in the licensing process of water supply services which results in delay in licensing and lack of mapping of intervention areas, which contributes to more conflict. 3. There is lack of communication between FIPAG and local authorities on expansion areas. 4. Water supply private providers (WSPP) should be trained and organised to improve the quality of service to distribute bulk water. Water quality 5. The use of bulk water will reduce the risk of groundwater overexploitation. 6. FIPAG should prioritise networks in areas with brackish water. Vulnerable groups 7. The current system of social tax attribution is only based on consumption, which does not always reflect situations of vulnerability. 8. WSPP are closer to the community and more able to identify vulnerable households. The public sector should subsidise the private sector in the application of social tariff. ESSA Meeting - DNGRH Date: 16/09/2022 Venue: DNGRH Participants: Messias Macie (National Director) Eduardo Jossefa (Chief of Department of Hydraulic Works) Agostinho Vilanculos (Chief of Department for Water Resources Management) Solénio Mark Wood (WB Environmental Consultant) Madalena Dray (WB Social Consultant) Organisational 1. DNGRH has a Hydrology & Environmental unit under the Department for Water Structure Resources, that has mandate development of strategies and plans to promote water resources conservation. 2. It has been focused only on water quality, but intends to extend the intervention to activities related to the conservation of water resources in river basins (containment of sand mining, deforestation, erosion, environmental flows, etc.) 3. The senior biologist that was in the unit went recently to retirement. Currently there is only one part-time interim and one government staff. 4. Goal to establish a solid ES unit with environmental and social specialists. ES Management 5. DNGRH intends to stablish an ESMS as an umbrella for all ARAs. . are already prepared (shared). There will be need for less than 1 million USD for equipment and support with technical assistance and training. ESSA Meeting - DNGRH 6. There were some previous experiences in implementing projects ES requirements under WB and AfDB ES requirements, although not transmitted to the new staff. ESSA Meeting - FIPAG Date: 16/09/2022 Venue: FIPAG Participants: Abilio Morima (Head of Central Services for Operation) Movais Soca (Chief of Dept for Operation) Fátima Frechaut (Dept for Operation – Contracts Management) António Guiano (Dept for Operation – Contracts Management) Mark Wood (WB Environmental Consultant) Madalena Dray (WB Social Consultant) Organisational 1. FIPAG Operating Services oversee AdMM operation activities. It does not have any Structure environmental or social specialist. 2. Nordino’s team provides some assistance in environmental licensing of operational activities and any other case of necessity. ES Management 3. AdRMM prepares monthly and annual reports to FIPAG (to be submitted to AURA), which has been lately including an ES chapter, even though it is not a contractual requirement. These reports also include information regarding compliance with water quality standards and grievances’ response. Water quality 4. All operational areas have labs for water quality monitoring, following the standards defined in the Cession Agreement. Conflicts 5. FIPAG is developing a pilot for bulk water supply to WSPP in 4 pilot areas using FIPAG’s infrastructure. To this end, it has prepared a model contract, that was approved by AURA. 6. The use of WSPP own infrastructure will require previous assessment of its condition. 7. FIPAG’s Planning Directorate have been engaged with AFORAMO and PLAMA (Mozambican Platform for Water) ANNEXURE 2 Proposed Result Areas of the PforR Program WB Consultancy REF PROPOSED ACTIONS contribution services & Works (US$ millions) goods 250,00 55,90 194,10 RA1: IMPROVING THE ENABLING ENVIRONMENT FOR PRIVATE SECTOR PARTICIPATION 12,00 12,00 - 1.1 PPP Transaction Support 5,00 5,00 - 1.1.1 PPP support grant program 5,00 5,00 - 1.2 Development of FIPAG's asset owner and investment capabilities 5,00 5,00 - 1.2.1 Technical assistance and institutional training to FIPAG 2,00 2,00 1.2.2 Technical assistance and training for Regional Companies 1,00 1,00 1.2.3 Training to ensure resilient projects 1,00 1,00 1.2.4 Reinforcement of the Project's implementation capacity 1,00 1,00 1,3 Models for integration of Private Water Providers (PWP) 2,00 2,00 - 1.3.1 Development and approval of Technical Standards for Private Water Provider (PPA) systems 0,50 0,50 1.3.2 Development and approval of the Bulk Water Sale model 1,00 1,00 1.3.3 Licensing of Private Water Providers 0,50 0,50 RA2: RESILIENT AND SUSTAINABLE SERVICE DELIVERY (ACCESS) 145,00 11,50 133,50 2.1 MAPUTO METROPOLITAN AREA 45,00 - 45,00 2.1.1 Definitive crossing of the Incomati River, 500 m, Cast Iron, DN 1000 10,00 10,00 WB Consultancy REF PROPOSED ACTIONS contribution services & Works (US$ millions) goods 2.1.2 Construction of the Pipeline between Matola Gare and Mulotane 5,00 5,00 2.1.3 Construction of 7 PSAA along the Corumana-Machava pipeline 5,00 5,00 2.1.4 Requalification of Umbeluzi ETA collection station nº 3 3,00 3,00 2.1.5 Rehabilitation and expansion of 3 Distribution Centres (Matola Rio, Tsalala and Belo Horizonte) 6,00 6,00 2.1.6 Construction of the Mulotana and Matola Gare distribution centres 8,00 8,00 2.1.7 Construction of distribution network in Mulotana (130km and 70,000 new connections) 8,00 8,00 2.1.8 Construction of the Campoane (Umbeluzi) crossing - - 2.2 SOUTHERN REGION 42,00 42,00 2.2.1 Expansion and rehabilitation of the Xai-Xai SAA. 28,50 28,50 2.2.1.1 Construction of 25 boreholes including electromechanical equipment 3,00 3,00 2.2.1.2 Construction of 4 mains of 9km, 10km, 10km and 4km of DN 350, HDPE main 5,00 5,00 Construction of 4 distribution centres in the Marien Ngouaby, Praia Nova, Chongoene and Patrice 2.2.1.3 6,75 6,75 Lumumba neighborhoods 2.2.1.4 Construction of 4 pumping stations 4,50 4,50 2.2.1.5 Construction of reserve systems with a capacity of 10,000 m3 2,50 2,50 2.2.1.6 Rehabilitation of 9 distribution centres 2,00 2,00 Construction of 75 km of the network (Nguaby, Chicumbane and Chongoene), HDPE and 7,500 new 2.2.1.7 3,00 3,00 connections 2.2.1.8 Expansion of the Guijá system 1,75 1,75 WB Consultancy REF PROPOSED ACTIONS contribution services & Works (US$ millions) goods 2.2.2 Expansion of Inhambane SAA 10,50 - 10,50 2.2.2.1 5 hole electromechanical equipment 1,00 1,00 2.2.2.2 Construction of 9.6km, 9.4km and 8.8km of DN 300 HDPE pipelines 3,00 3,00 2.2.2.3 Construction of a distribution centre in Tofo 1,80 1,80 2.2.2.4 Construction of a 2,000m3 reservoir at the Guiua ETA 1,00 1,00 2.2.2.5 Rehabilitation of the Guiua treatment and pumping plant 0,70 0,70 2.2.2.6 Construction of 30km of network, HDPE and 3,000 new connections 1,00 1,00 2.2.2.6 Construction of Namachacha SAA including 1,000 new connections 2,00 2,00 2.2.3 Expansion of the Chibuto supply system 3,00 3,00 2.2.3.1 Rehabilitation of the ETA and construction of a pumping station to capture the ETA 1,80 1,80 2.2.3.2 CD 2 repair and rehabilitation 0,20 0,20 2.2.3.3 Construction of a decanter next to the catchment 0,50 0,50 2.2.3.4 Rehabilitation of the adductor duct from the ETA intake 0,40 0,40 2.2.3.5 Supply and installation of 1,000 connections 0,10 0,10 2.3 PWPs 8,00 1,00 7,00 2.3.1 Support to the PPA for their integration and improvement of services and quality and water 8,00 1,00 7,00 2.4 INCREASED RESILIENCE FOR SERVICE DELIVERY (SABIE WTP) WHEN < 40% NRW AdRMM 35,00 - 35,00 2.4.1 Construction of Sábie WTP – Phase II 35,00 35,00 WB Consultancy REF PROPOSED ACTIONS contribution services & Works (US$ millions) goods 2.5 Strengthening of ARA-Sul to Secure Water Availability in Quality and Quantity 15,00 10,50 4,50 2.5.1 Enhancement of water quality 5,70 5,70 - Construction of the piezometric network as a measure to create climate resilience in the 2.5.1.1 management of aquifer systems in Greater Maputo and the cities of Xai-Xai, Maxixe, Inhambane and 0,70 0,70 - Surrounding areas Implementation of an early warning system in communities including the construction of automatic 2.5.1.2 resilient stations using renewable energy sources and professional training of hydrometric station 0,60 0,60 - readers Updating of the hydro-geological map of the South Zone as an instrument for mitigating drought in a 2.5.1.3 1,10 1,10 - context of climate change Installation of a flood and drought monitoring centre at ARA-Sul to mitigate the impacts of climate 2.5.1.4 0,20 0,20 - change 2.5.1.5 Implementation target monitoring programs for PWPs boreholes 0,50 0,50 - 2.5.1.6 Inhambane aquifer recharge pilot project and implementation of protection measures 0,30 0,30 - 2.5.1.7 Studies and elaboration of a protection strategy for the Inco-Umbeluzi and Limpopo sources. 0,30 0,30 - Elaboration of plans for: reservoir manager, operation, environmental safety and ecological 2.5.1.8 management, external and internal emergency, for the dams in the south zone and improvement of 0,75 0,75 - the response to climatic adversities 2.5.1.9 Installation of water and sediment laboratory, equipment and training 0,50 0,50 - Elaboration of water allocation models (Umbelúzi and Incomáti) based on climate change scenarios 2.5.1.10 0,50 0,50 - and evaluation of the reliability of the water supply in Greater Maputo Implementation of a watershed management pilot project, including a plan to protect buffer zones 2.5.1.11 0,25 0,25 - and reduce deforestation in reservoir areas 2.5.2 Licensing of water users and strengthening of ARA's financial sustainability 2,35 1,85 0,50 2.5.2.1 Simplification and modernization of licensing processes leveraging technologies in the Divisions 0,10 0,10 - WB Consultancy REF PROPOSED ACTIONS contribution services & Works (US$ millions) goods 2.5.2.2 Implementation of water users registry and licensing programs 0,50 0,50 - 2.5.2.3 Implementation of a pilot program for the installation of collected water meters 0,30 0,30 - 2.5.2.4 Updating irrigated areas, census, policing and penalizing water users 0,10 0,10 - Computerize ARA Sul, IP and implement information management systems, the Web, complaint 2.5.2.5 0,30 0,30 - platforms, dissemination of information and modern archiving Development of an internal control system, Modernization of the Accounting and Financial Reporting 2.5.2.6 0,40 0,40 - System, ensuring the audit and publication of accounts Automate the billing, collection and payment system for raw water fees and implement real-time 2.5.2.7 0,15 0,15 - payment and control mechanisms 2.5.2.8 Opening of at least 04 commercial stores to facilitate access to the services provided by ARA Sul 0,50 0,50 2.5.3 Capacity Building and Institutional Development Support 6,95 2,95 4,00 Expansion and improvement of ARA-Sul services, with the construction of offices and ecologically 2.5.3.1 4,00 4,00 sustainable technologies 2.5.3.2 Modernization and equipping of ARA-Sul offices 1,40 1,40 - 2.5.3.3 Development of ARA-Sul Strategic, Business and Sustainability Plans 0,35 0,35 - 2.5.3.4 Training and human resources development program 0,50 0,50 - 2.5.3.5 Talent recruitment programs (Implementation of a junior trainee program) 0,20 0,20 - 2.5.3.6 ARA -South Women Empowerment Program 0,50 0,50 - RA3: IMPROVING THE PERFORMANCE OF INSTITUTIONS AND SERVICES 93,00 32,40 60,60 3.1 Non-Revenue Water Reduction Program 67,00 20,40 46,60 3.1.1 Performance Based Contracts Loss Reduction - PAIRP AdRMM MAPUTO 54,00 19,40 34,60 3.1.1.1 Physical loss reduction 17,60 - 17,60 3.1.1.1.1 Repair of Machava, Matola and Belo Horizonte reservoirs 1,40 1,40 WB Consultancy REF PROPOSED ACTIONS contribution services & Works (US$ millions) goods 3.1.1.1.2 Rehabilitation of Cell 2 of Reservoir 5 of the Maxaquene CD 1,40 1,40 3.1.1.1.3 Replacement of 150 km of obsolete piping in the network. 3,30 3,30 3.1.1.1.4 Replacement of 10 km of obsolete piping in the main lines including accessories. 1,50 1,50 3.1.1.1.5 Rehabilitation of 200 km of unstructured network (elimination of spaghetti) network 2,50 2,50 3.1.1.1.6 Deactivation of 11km duplicated network 0,80 0,80 3.1.1.1.7 Transfer of 35,000 connection extensions including meter tables 3,50 3,50 3.1.1.1.8 Rehabilitation of 600 meters in building installations 0,40 0,40 3.1.1.1.9 Installation of 25 Pressure Reducing Valves in Critical Network Areas 0,60 0,60 Replacement of 120 meters at DC entrances and exits including offtakes and installation of new ones 3.1.1.1.10 1,20 1,20 with telemetry 3.1.1.1.11 Installation of 100 meters with telemetry in bulk water sales facilities 1,00 1,00 3.1.1.2 Commercial loss reduction 16,20 - 16,20 3.1.1.2.1 Installation of 5,000 new connections 0,30 0,30 3.1.1.2.2 Replacement of 100,000 Counters (Aged+Broken+Replacement) 6,00 6,00 3.1.1.2.3 Installation of 24,500 Prepaid Meters 5,90 5,90 3.1.1.2.4 Installation of 1,000 Meters with Telemetry at Large Clients 1,00 1,00 3.1.1.2.5 Georeferencing of 450,000 Customers 2,30 2,30 3.1.1.2.6 Campaign concerning illegal consumption (communication plan) (10,000) 0,40 0,40 3.1.1.2.7 Criminalization of illegal consumption (legal advice) 0,20 0,20 3.1.1.2.8 Socio-cultural study on causes and solutions for illegal consumption in Maputo 0,10 0,10 3.1.1.3 Management technologies 15,80 15,00 0,80 WB Consultancy REF PROPOSED ACTIONS contribution services & Works (US$ millions) goods Design and implementation of 1 integrated Automation & Telemetry system in the bulk water system 3.1.1.3.1 5,50 5,50 (ETAs, DCs and Off Takes) Design and implementation of 3 integrated Automation & Telemetry systems in the network system 3.1.1.3.2 4,50 4,50 (Distribution network) Implementation of remote readings on domestic meters (communication system, management and 3.1.1.3.3 2,00 2,00 monitoring platform and integration with SAP) 3.1.1.3.4 Creation of 40 Measurement and Control Zones and consolidation of existing ZMCs 0,80 0,80 Implementation of remote readings for 16,000 domestic meters (communication system, 3.1.1.3.5 3,00 3,00 management and monitoring platform and integration with SAP) 3.1.1.4 Training and capacity building 1,90 1,90 - Training actions associated with the reduction of physical losses (plumbing, distribution, network 3.1.1.4.1 maintenance and others) Training actions associated with the reduction of commercial losses (Analysts/Area Managers and 3.1.1.4.2 Commercial Process Managers) Training actions for the technological component of loss reduction (Automation, hydraulic modelling; 3.1.1.4.3 design, management and monitoring of ZMC; design, management and monitoring of tele- management) 1,90 1,90 3.1.1.4.4 Training actions for Top Managers Awareness Lectures to improve awareness about losses and rational use of water for internal and 3.1.1.4.5 external customers Experience exchange visits in terms of loss reduction at similar entities inside and outside the 3.1.1.4.6 country 3.1.1.5 Supply of equipment: - Workshop trolleys - Excavation, tools and work accessories 2,50 2,50 3.1.2 Performance Based Contracts for Loss Reduction - PAIRP ARS 13,00 1,00 12,00 3.1.2.1 Study of water losses in all cities in the southern region 0,50 0,50 3.1.2.2 Physical loss reduction 9,70 - 9,70 WB Consultancy REF PROPOSED ACTIONS contribution services & Works (US$ millions) goods 3.1.2.2.1 Xai-Xai: 2,60 2,60 Replacement of 60km of the obsolete network and transfer of 5,000 connections from the old 3.1.2.2.1.1 1,60 1,60 network to the new one 3.1.2.2.1.2 Replacement of 12,000 connection extensions 0,70 0,70 3.1.2.2.1.3 Creation of 18 Measurement and Control Zones 0,30 0,30 3.1.2.2.2 Chibuto: 1,50 1,50 3.1.3.2.2.1 Replacement of 30km of obsolete network and transfer of 3,100 connections 1,20 1,20 3.1.3.2.2.2 Replacement of 2,000 connection branches 0,20 0,20 3.1.3.2.2.3 Creation of 5 Measurement and Control Zones 0,10 0,10 3.1.2.2.3 Chokwe: 2,10 2,10 Replacement of 15 km of obsolete network and requalification of 15 km of spaghetti network 3.1.2.3.3.1 1,20 1,20 including transfer of 1,280 connections 3.1.2.3.3.2 Replacement of 7,500 connection branches 0,40 0,40 3.1.2.3.3.3 Creation of 15 Measurement and Control Zones 0,50 0,50 3.1.2.2.4 inhambane: 2,20 2,20 3.1.2.4.4.1 Replacement of 60km of obsolete network 0,90 0,90 3.1.2.4.4.2 Transfer of 3,000 connections from the old network to the new one 0,50 0,50 3.1.2.4.4.3 Replacement of 5,000 call extensions 0,50 0,50 3.1.2.4.4.4 Creation of 8 measurement and control zones 0,30 0,30 3.1.2.2.5 Maxixe 1,30 1,30 3.1.2.5.5.1 Replacement of 20km of obsolete network 0,70 0,70 3.1.2.5.5.2 Transfer of 1,000 connections from the old network to the new one 0,40 0,40 WB Consultancy REF PROPOSED ACTIONS contribution services & Works (US$ millions) goods 3.1.2.5.5.3 Creation of 6 measurement and control zones 0,20 0,20 3.1.2.3 Reduction of Commercial Losses 2,30 2,30 3.1.2.3.1 Xai-Xai: 1,00 1,00 3.1.2.3.1.1 Replacement of 17,000 faulty meters 1,00 1,00 3.1.2.3.2 Chibuto 0,20 0,20 3.1.2.3.2.1 Replacement of 2,000 faulty meters 0,20 0,20 3.1.2.3.3 Chokwe: 0,20 0,20 3.1.2.3.3.1 Replacement of 2,000 faulty meters 0,20 0,20 3.1.2.3.4 inhambane 0,50 0,50 3.1.2.3.4.1 Replacement of 9,000 faulty meters 0,50 0,50 3.1.2.3.5 Maxixe 0,40 0,40 3.1.2.3.5.1 Replacement of 7,000 faulty meters 0,40 0,40 3.1.2.3.6 Training and qualification 0,50 0,50 3.1.2.3.6.1 Training and qualification for 5 operational areas 0,50 0,50 3.2 Energy Efficiency Program 15,00 3,00 12,00 3.2.1 AdRM Maputo 11,00 2,00 9,00 3.2.1.1 Energy Audit and pumping design system improvement 2,00 2,00 3.2.1.2 Replacement of old and inefficient pumps and installation of VSD 9,00 9,00 3.2.2 AdR South 4,00 1,00 3,00 3.2.2.1 Energy Audit and pumping design system improvement 1,00 1,00 - WB Consultancy REF PROPOSED ACTIONS contribution services & Works (US$ millions) goods 3.2.2.2 Replacement of old and inefficient pumps and installation of VSD 3,00 - 3,00 3.3 Grants Program for Capacity Building and Institutional Development of Water Utilities 6,00 4,00 2,00 3.3.1 AdRM Maputo 3,00 2,00 1,00 3.3.1.1 Infrastructure construction and rehabilitation 1,00 - 1,00 3.3.1.2 supply of equipment 0,25 0,25 - 3.3.1.3 Training and qualification 0,25 0,25 - 3.3.1.4 Training of implementing agencies to ensure resilient projects 0,25 0,25 - 3.3.1.5 AdRMM Women Empowerment Program 0,45 0,45 - 3.3.1.6 Additional activities from the Utilities of the Future Plan 0,80 0,80 3.3.2 AdR South 3,00 2,00 1,00 3.3.2.1 Infrastructure construction and rehabilitation 1,00 - 1,00 3.3.2.2 supply of equipment 0,25 0,25 - 3.3.2.3 Training and qualification 0,25 0,25 - 3.3.2.4 Training of implementing agencies to ensure resilient projects 0,25 0,25 - 3.3.2.5 AdRS Women Empowerment Program 0,45 0,45 - 3.3.2.6 Additional activities from the Utilities of the Future Plan 0,80 0,80 - 3.4 Strengthening of the regulatory role 5,00 5,00 - Development of mediation tools for potential conflicts and relationship between Public Operators 3.4.1 0,60 0,60 - and Private Operators Review and elaboration of criteria for the definition of fairer socio-economically sustainable rates 3.4.2 0,30 0,30 - and tariffs WB Consultancy REF PROPOSED ACTIONS contribution services & Works (US$ millions) goods Consolidation of the expansion of the regulatory action of the Regional Delegations through the 3.4.3 construction of the South regional office in Inhambane and the completion of the work on the Xai-Xai 1,10 1,10 - office Elaboration and publication of Technical Guides for regulation on the requirements of the public 3.4.4 0,60 0,60 - water supply and sanitation service Implementation of the complaints management system in accordance with duly stipulated rules and 3.4.5 0,20 0,20 - deadlines 3.4.6 Promotion of the image of AURA, IP through advertising, marketing plan and production of leaflets 0,30 0,30 - 3.4.7 PPA (Small Water Supply Providers) integration study 0,30 0,30 - 3.4.8 Strategic technical assistance for AURA, IP 0,85 0,85 - 3.4.9 Development of the human capital of AURA, IP 0,75 0,75 - ANNEXURE 3 Maps and Photographs Annexure 3-1: Nkomati road bridge (the pipe bridge shown in red, crossing within fifty metres of the road bridge) Annexure 3-2: Existing temporary HDPE pipeline laid along the Nkomati road bridge Annexure 3-3: Photograph showing approximate location of Incomati pipe bridge crossing point, 30 m downstream of the road bridge Annexure 3-4: Umbeluzi River pipe bridge (proposed pipe bridge is shown in red). Annexure 3-5: Umbeluzi River pipe bridge (proposed pipe bridge is shown in red). Annexure 3-6: Construction of the emergency bridge across the Umbeluzi River after the existing bridge collapsed in 2020 (looking from north to south) Annexure 3-7: Proposed PforR works including wellfields, mainlines and distribution centres in Xai Xai District Annexure 3-8: Schematic of aquifers feeding the Mozambique coastal barrier lakes and wetlands Annexure 3-9: Cultivation in the 8,3 ha Marien Ngouabi wellfield Annexure 3-10: Proposed PforR works including wellfields, mainlines and distribution centres in Xai Xai District Annexure 3-11: Typical example of a constrained section of the route along the proposed mainline to the Chicumbane DC Annexure 3-12: Cultivation in the 46 ha Chicumbane wellfield Annexure 3-13: Cultivation in the 36 ha Chongoene wellfield Annexure 3-14: Proposed P for R works including wellfields, mainlines and distribution centres in Inhambane District Annexure 3-15: Cultivation in the 37 ha Malembuane wellfield Annexure 3-16: Typical settlement along the secondary road to Tofo (the pipeline is 8m from the edge of the road – the road regulations require a exclusionary zone of 15 m which would result in direct housing and infrastructure impacts in places) Annexure 3-17: Typical settlement along the secondary road to Tofo (the pipeline is 8m from the edge of the road – the road regulations require a exclusionary zone of 15 m which would result in direct housing and infrastructure impacts as shown by the green line) Annexure 3-18: Proposed expansion of the Sabié Water Treatment Plant (all expansion will take place within the area controlled by FIPAG) Annexure 3-19: Sabié Water Treatment Plant under construction and Phase II location Annexure 3-20: Leaking reservoirs at the Machava and Matola Distribution Centres Annexure 3-21: Typical excavations for primary and secondary network pipelines in the Greater Maputo region – work in confined spaces within road reserves is generally feasible to avoid land loss affecting adjacent urban landowners Annexure 3-22: Civil construction works at the Sabié Water Treatment Plant and Guava Distribution Centre – a similar scale of works is proposed by FIPAG for the expansion of the Sabié Water Treatment Plant and repair of distribution centres ANNEXURE 4 Preliminary Screening of PforR Results Areas Risks and Impacts that would prohibit the activity (RA) from being undertaken under PforR resettlement of a scale or nature that will have significant adverse Air, water, or soil contamination Activities that involve the use of or access to land and/or natural Significant cumulative, induced, impacts, or global impacts such Large-scale changes in land use conflict within or among, social impacts on affected people, or Adverse E&S impacts covering degradation of critical natural expose workers to significant leading to significant adverse risks to health and personal (including ethnic and racial) Workplace conditions that the use of forced evictions habitats or critical cultural discrimination against, or as greenhouse gas (GHG) large geographical areas, Significant conversion or impacts on the health of including transboundary Land acquisition and/or forced or child labor Marginalization of, or indirect impacts heritage sites ecosystems emissions resources groups safety No. PforR Results Area 1.1 PPP Transaction Support 1.1.1 PPP support grant program x x x x x x x x x Development of FIPAG's asset owner and investment 1.2 capabilities Technical assistance and institutional training to 1.2.1 x x x x x x x x x FIPAG Technical assistance and training for Regional 1.2.2 x x x x x x x x x Companies 1.2.3 Training to ensure resilient projects x x x x x x x x x Reinforcement of the Project's implementation 1.2.4 x x x x x x x x x capacity Models for integration of Private Water Providers 1.3 (PWP) Development and approval of Technical Standards 1.3.1 x x x x x x x x x for Private Water Provider (PPA) systems Development and approval of the Bulk Water Sale 1.3.2 x x x x x x x x x model 1.3.3 Licensing of Private Water Providers x x x x x x x x x RA2: RESILIENT AND SUSTAINABLE SERVICE DELIVERY (ACCESS) 2.1 MAPUTO METROPOLITAN AREA Definitive crossing of the Incomati River, 500 m, Cast x O O O x x O x x 2.1.1 Iron, DN 1000 Construction of the Pipeline between Matola Gare x O O O x x O x x 2.1.2 and Mulotane Construction of 7 PSAA along the Corumana- x O O O x x O x x 2.1.3 Machava pipeline Requalification of Umbeluzi ETA collection station nº x O O X x x O x x 2.1.4 3 Risks and Impacts that would prohibit the activity (RA) from being undertaken under PforR resettlement of a scale or nature that will have significant adverse Air, water, or soil contamination Activities that involve the use of or access to land and/or natural Significant cumulative, induced, impacts, or global impacts such Large-scale changes in land use conflict within or among, social impacts on affected people, or Adverse E&S impacts covering degradation of critical natural expose workers to significant leading to significant adverse risks to health and personal (including ethnic and racial) Workplace conditions that the use of forced evictions habitats or critical cultural discrimination against, or as greenhouse gas (GHG) large geographical areas, Significant conversion or impacts on the health of including transboundary Land acquisition and/or forced or child labor Marginalization of, or indirect impacts heritage sites ecosystems emissions resources groups safety No. PforR Results Area Rehabilitation and expansion of 3 Distribution x O O O x x O x x 2.1.5 Centers (Matola Rio, Tsalala and Belo Horizonte) Construction of the Mulotana and Matola Gare x O O O x x O x x 2.1.6 distribution centers Construction of distribution network in Mulotana x O O O x x O x x 2.1.7 (130 km and 70,000 new connections) 2.1.8 Construction of the Campoane (Umbeluzi) crossing x O O O x x O x x 2.2 SOUTHERN REGION 2.2.1 Expansion and rehabilitation of the Xai-Xai SAA. Construction of 25 boreholes including x O O O x x O x x 2.2.1.1 electromechanical equipment Construction of 4 mains of 9 km, 10 km, 10 km and x O O O x x O x x 2.2.1.2 4km of DN 350, HDPE main Construction of 4 distribution centers in the Marien Ngouaby, Praia Nova, Chongoene and Patrice x O O O x x O x x 2.2.1.3 Lumumba neighborhoods 2.2.1.4 Construction of 4 pumping stations x O O O x x O x x Construction of reserve systems with a capacity of x O O O x x O x x 2.2.1.5 10,000 m3 2.2.1.6 Rehabilitation of 9 distribution centers x O O X x x O x x Construction of 75 km of the network (Nguaby, Chicumbane and Chongoene), HDPE and 7,500 new x O O X x x O x x 2.1.1.7 connections 2.2.1.8 Expansion of the Guijá system x O O O x x O x x 2.2.2 Expansion of Inhambane SAA Construction of 5 boreholes and electromechanical x O O O x x O x x 2.2.2.1 equipment Construction of 9.6 km, 9.4 km and 8.8 km of DN 300 x O O O x x O x x 2.2.2.2 HDPE pipelines 2.2.2.3 Construction of a distribution center in Tofo x O O X x x O x x 2.2.2.4 Construction of a 2,000m3 reservoir at the Guiua ETA x O O X x x O x x Rehabilitation of the Guiua treatment and pumping x O O X x x O x x 2.2.2.5 plant Risks and Impacts that would prohibit the activity (RA) from being undertaken under PforR resettlement of a scale or nature that will have significant adverse Air, water, or soil contamination Activities that involve the use of or access to land and/or natural Significant cumulative, induced, impacts, or global impacts such Large-scale changes in land use conflict within or among, social impacts on affected people, or Adverse E&S impacts covering degradation of critical natural expose workers to significant leading to significant adverse risks to health and personal (including ethnic and racial) Workplace conditions that the use of forced evictions habitats or critical cultural discrimination against, or as greenhouse gas (GHG) large geographical areas, Significant conversion or impacts on the health of including transboundary Land acquisition and/or forced or child labor Marginalization of, or indirect impacts heritage sites ecosystems emissions resources groups safety No. PforR Results Area Construction of 30km of network, HDPE and 3,000 x O O x x x O x x 2.2.2.6 new connections Construction of Namachacha SAA including 1,000 x O O x x x O x x 2.2.2.7 new connections 2.2.3 Expansion of the Chibuto supply system Rehabilitation of the ETA and construction of a x O O x x x O x x 2.2.3.1 pumping station to capture the ETA 2.2.3.2 DC 2 repair and rehabilitation x O O x x x O x x 2.2.3.2 Construction of a decanter next to the catchment x x O x x x x x x Rehabilitation of the adductor duct from the ETA x x O x x x x x x 2.2.3.4 intake 2.2.3.5 Supply and installation of 1,000 connections x x O x x x x x x 2.3 PWPs Support to the PPA for their integration and x x x x x x x x 2.3.1 improvement of services and quality and water INCREASED RESILIENCE FOR SERVICE DELIVERY 2.4 (SABIE WTP) WHEN < 40% NRW AdRMM 2.4.1 Construction of Sábie WTP – Phase II x O O x x x O x x Strengthening of ARA-Sul to Secure Water 2.5 Availability in Quality and Quantity 2.5.1 Enhancement of water quality Construction of the piezometric network as a measure to create climate resilience in the management of aquifer systems in Greater Maputo x x O x x x x x x and the cities of Xai-Xai, Maxixe, Inhambane and 2.5.1.1 surrounding areas Implementation of an early warning system in communities including the construction of automatic x x x x x x x x x resilient stations using renewable energy sources and 2.5.1.2 professional training of hydrometric station readers Updating of the hydro-geological map of the South Zone as an instrument for mitigating drought in a x x x x x x x x x 2.5.1.3 context of climate change Risks and Impacts that would prohibit the activity (RA) from being undertaken under PforR resettlement of a scale or nature that will have significant adverse Air, water, or soil contamination Activities that involve the use of or access to land and/or natural Significant cumulative, induced, impacts, or global impacts such Large-scale changes in land use conflict within or among, social impacts on affected people, or Adverse E&S impacts covering degradation of critical natural expose workers to significant leading to significant adverse risks to health and personal (including ethnic and racial) Workplace conditions that the use of forced evictions habitats or critical cultural discrimination against, or as greenhouse gas (GHG) large geographical areas, Significant conversion or impacts on the health of including transboundary Land acquisition and/or forced or child labor Marginalization of, or indirect impacts heritage sites ecosystems emissions resources groups safety No. PforR Results Area Installation of a flood and drought monitoring center x x x x x x x x x 2.5.1.4 at ARA-Sul to mitigate the impacts of climate change Implementation target monitoring programs for x x x x x x x x x 2.5.1.5 PWPs boreholes Inhambane aquifer recharge pilot project and x x x x x x x x x 2.5.1.6 implementation of protection measures Studies and elaboration of a protection strategy for x x x x x x x x x 2.5.1.7 the Inco-Umbeluzi and Limpopo sources. Elaboration of plans for: reservoir manager, operation, environmental safety and ecological management, external and internal emergency, for x x x x x x x x x the dams in the south zone and improvement of the 2.5.1.8 response to climatic adversities Installation of water and sediment laboratory, x x O x x x x x x 2.5.1.9 equipment and training Elaboration of water allocation models (Umbelúzi and Incomáti) based on climate change scenarios and x x x x x x x x x evaluation of the reliability of the water supply in 2.5.1.10 Greater Maputo Implementation of a watershed management pilot project, including a plan to protect buffer zones and x x x x x x x x x 2.5.1.11 reduce deforestation in reservoir areas Licensing of water users and strengthening of ARA's 2.5.2 financial sustainability Simplification and modernization of licensing x x x x x x x x x 2.5.2.1 processes leveraging technologies in the Divisions Implementation of water users registry and licensing x x x x x x x x x 2.5.2.2 programs Implementation of a pilot program for the x x x x x x x x x 2.5.2.3 installation of collected water meters Updating irrigated areas, census, policing and x x x x x x x x x 2.5.2.4 penalizing water users Risks and Impacts that would prohibit the activity (RA) from being undertaken under PforR resettlement of a scale or nature that will have significant adverse Air, water, or soil contamination Activities that involve the use of or access to land and/or natural Significant cumulative, induced, impacts, or global impacts such Large-scale changes in land use conflict within or among, social impacts on affected people, or Adverse E&S impacts covering degradation of critical natural expose workers to significant leading to significant adverse risks to health and personal (including ethnic and racial) Workplace conditions that the use of forced evictions habitats or critical cultural discrimination against, or as greenhouse gas (GHG) large geographical areas, Significant conversion or impacts on the health of including transboundary Land acquisition and/or forced or child labor Marginalization of, or indirect impacts heritage sites ecosystems emissions resources groups safety No. PforR Results Area Computerize ARA Sul, IP and implement information management systems, the Web, complaint x x x x x x x x x platforms, dissemination of information and modern 2.5.2.5 archiving Development of an internal control system, Modernization of the Accounting and Financial x x x x x x x x x Reporting System, ensuring the audit and publication 2.5.2.6 of accounts Automate the billing, collection and payment system for raw water fees and implement real-time payment x x x x x x x x x 2.5.2.7 and control mechanisms Opening of at least 4 commercial stores to facilitate x x O x x x x x x 2.5.2.8 access to the services provided by ARA Sul Capacity Building and Institutional Development 2.5.3 Support Expansion and improvement of ARA-Sul services, with the construction of offices and ecologically x x x x x x x x x 2.5.3.1 sustainable technologies 2.5.3.2 Modernization and equipping of ARA-Sul offices x x O x x x x x x Development of ARA-Sul Strategic, Business and x x x x x x x x x 2.5.3.3 Sustainability Plans 2.5.3.4 Training and human resources development program x x x x x x x x x Talent recruitment programs (Implementation of a x x x x x x x x x 2.5.3.5 junior trainee program) 2.5.3.6 ARA -South Women Empowerment Program x x x x x x x x x RA3: IMPROVING PERFORMANCE OF INSTITUTIONS AND SERVICES 3.1 Non-Revenue Water Reduction Program Performance Based Contracts Loss Reduction - 3.1.1 PAIRP AdRMM MAPUTO 3.1.1.1 Physical loss reduction Repair of Machava, Matola and Belo Horizonte x O O x x x x x x 3.1.1.1.1 reservoirs Risks and Impacts that would prohibit the activity (RA) from being undertaken under PforR resettlement of a scale or nature that will have significant adverse Air, water, or soil contamination Activities that involve the use of or access to land and/or natural Significant cumulative, induced, impacts, or global impacts such Large-scale changes in land use conflict within or among, social impacts on affected people, or Adverse E&S impacts covering degradation of critical natural expose workers to significant leading to significant adverse risks to health and personal (including ethnic and racial) Workplace conditions that the use of forced evictions habitats or critical cultural discrimination against, or as greenhouse gas (GHG) large geographical areas, Significant conversion or impacts on the health of including transboundary Land acquisition and/or forced or child labor Marginalization of, or indirect impacts heritage sites ecosystems emissions resources groups safety No. PforR Results Area Rehabilitation of Cell 2 of Reservoir 5 of the x O O x x x x x x 3.1.1.1.2 Maxaquene CD Replacement of 150 km of obsolete piping in the x O O x x x x x x 3.1.1.1.3 network. Replacement of 10 km of obsolete piping in the main x O O x x x x x x 3.1.1.1.4 lines including accessories. Rebilitation of 200 km of unstructured network x O O x x x x x x 3.1.1.1.5 (elimination of spaghetti) network 3.1.1.1.6 Deactivation of 11km duplicated network x O O x x x x x x Transfer of 35,000 connection extensions including x O O x x x x x x 3.1.1.1.7 meter tables 3.1.1.1.8 Rehabilitation of 600 meters in building installations x O O x x x x x x Installation of 25 Pressure Reducing Valves in Critical x x O x x x x x x 3.1.1.1.9 Network Areas Replacement of 120 meters at DC entrances and exits including offTakes and installation of new ones with x x O x x x x x x 3.1.1.1.10 telemetry Installation of 100 meters with telemetry in bulk x x O x x x x x x 3.1.1.1.11 water sales facilities 3.1.1.2 Commercial loss reduction 3.1.1.2.1 Installation of 5,000 new connections x x O x x x x x x Replacement of 100,000 Counters x x O x x x x x x 3.1.1.2.2 (Aged+Broken+Replacement) 3.1.1.2.3 Installation of 24,500 Prepaid Meters x x O x x x x x x Installation of 1,000 Meters with Telemetry at Large x x O x x x x x x 3.1.1.2.4 Clients 3.1.1.2.5 Georeferencing of 450,000 Customers x x x x x x x x x Campaign concerning illegal consumption x x x x x x x x x 3.1.1.2.6 (communication plan) (10,000) 3.1.1.2.7 Criminalization of illegal consumption (legal advice) x x x x x x x x x Socio-cultural study on causes and solutions for x x x x x x x x x 3.1.1.2.8 illegal consumption in Maputo 3.1.1.3 Management technologies Risks and Impacts that would prohibit the activity (RA) from being undertaken under PforR resettlement of a scale or nature that will have significant adverse Air, water, or soil contamination Activities that involve the use of or access to land and/or natural Significant cumulative, induced, impacts, or global impacts such Large-scale changes in land use conflict within or among, social impacts on affected people, or Adverse E&S impacts covering degradation of critical natural expose workers to significant leading to significant adverse risks to health and personal (including ethnic and racial) Workplace conditions that the use of forced evictions habitats or critical cultural discrimination against, or as greenhouse gas (GHG) large geographical areas, Significant conversion or impacts on the health of including transboundary Land acquisition and/or forced or child labor Marginalization of, or indirect impacts heritage sites ecosystems emissions resources groups safety No. PforR Results Area Design and implementation of 1 integrated Automation & Telemetry system in the bulk water x x x x x x x x x 3.1.1.3.1 system (ETAs, DCs and Off Takes) Design and implementation of 3 integrated Automation & Telemetry systems in the network x x x x x x x x x 3.1.1.3.2 system (Distribution network) Implementation of remote readings on domestic meters (communication system, management and x x x x x x x x x 3.1.1.3.3 monitoring platform and integration with SAP) Creation of 40 Measurement and Control Zones and x x x x x x x x x 3.1.1.3.4 consolidation of existing ZMCs Implementation of remote readings for 16,000 domestic meters (communication system, x x x x x x x x x management and monitoring platform and 3.1.1.3.5 integration with SAP) 3.1.1.4 Training and capacity building Training actions associated with the reduction of physical losses (plumbing, distribution, network x x x x x x x x x 3.1.1.4.1 maintenance and others) Training actions associated with the reduction of commercial losses (Analysts/Area Managers and x x x x x x x x x 3.1.1.4.2 Commercial Process Managers) Training actions for the technological component of loss reduction (Automation, hydraulic modelling; x x x x x x x x x design, management and monitoring of ZMC; design, 3.1.1.4.3 management and monitoring of telemanagement) 3.1.1.4.4 Training actions for Top Managers x x x x x x x x x Awareness Lectures to improve awareness about losses and rational use of water for internal and x x x x x x x x x 3.1.1.4.5 external customers Experience exchange visits in terms of loss reduction x x x x x x x x x 3.1.1.4.6 at similar entities inside and outside the country Risks and Impacts that would prohibit the activity (RA) from being undertaken under PforR resettlement of a scale or nature that will have significant adverse Air, water, or soil contamination Activities that involve the use of or access to land and/or natural Significant cumulative, induced, impacts, or global impacts such Large-scale changes in land use conflict within or among, social impacts on affected people, or Adverse E&S impacts covering degradation of critical natural expose workers to significant leading to significant adverse risks to health and personal (including ethnic and racial) Workplace conditions that the use of forced evictions habitats or critical cultural discrimination against, or as greenhouse gas (GHG) large geographical areas, Significant conversion or impacts on the health of including transboundary Land acquisition and/or forced or child labor Marginalization of, or indirect impacts heritage sites ecosystems emissions resources groups safety No. PforR Results Area Supply of equipment: - Workshop trolleys - 3.1.1.5 Excavation, tools and work accessories Performance Based Contracts for Loss Reduction - 3.1.2 PAIRP ARS Study of water losses in all cities in the southern 3.1.2.1 region 3.1.2.2 physical loss reduction 3.1.2.2.1 Xai-Xai: Replacement of 60km of the obsolete network and transfer of 5,000 connections from the old network x O O x x x x x x 3.1.2.2.1.2 to the new one 3.1.2.2.1.2 Replacement of 12,000 connection extensions x O O x x x x x x 3.1.2.2.1.3 Creation of 18 Measurement and Control Zones x x x x x x x x x 3.1.2.2.2 Chibuto: Replacement of 30km of obsolete network and x O O x x x x x x 3.1.2.2.2.1 transfer of 3,100 connections 3.1.2.2.2.2 Replacement of 2,000 connection branches x O O x x x x x x 3.1.2.2.2.3 Creation of 5 Measurement and Control Zones x x O x x x x x x 3.1.2.2.3 Chokwe: Replacement of 15 km of obsolete network and requalification of 15 km of spaghetti network x O O x x x x x x 3.1.2.2.3.1 including transfer of 1,280 connections 3.1.2.2.3.2 Replacement of 7,500 connection branches x O O x x x x x x 3.1.2.2.3.3 Creation of 15 Measurement and Control Zones x x x x x x x x x 3.1.2.2.4 inhambane: 3.1.2.2.4.1 Replacement of 60km of obsolete network x O O x x x x x x Transfer of 3,000 connections from the old network x x x x x x x x x 3.1.2.2.4.2 to the new one 3.1.2.2.4.3 Replacement of 5,000 call extensions x x O x x x x x x 3.1.2.2.4.4 Creation of 8 measurement and control zones x x x x x x x x x 3.1.2.2.5 Maxixe 3.1.2.2.5.1 Replacement of 20km of obsolete network x O O x x x x x x Risks and Impacts that would prohibit the activity (RA) from being undertaken under PforR resettlement of a scale or nature that will have significant adverse Air, water, or soil contamination Activities that involve the use of or access to land and/or natural Significant cumulative, induced, impacts, or global impacts such Large-scale changes in land use conflict within or among, social impacts on affected people, or Adverse E&S impacts covering degradation of critical natural expose workers to significant leading to significant adverse risks to health and personal (including ethnic and racial) Workplace conditions that the use of forced evictions habitats or critical cultural discrimination against, or as greenhouse gas (GHG) large geographical areas, Significant conversion or impacts on the health of including transboundary Land acquisition and/or forced or child labor Marginalization of, or indirect impacts heritage sites ecosystems emissions resources groups safety No. PforR Results Area Transfer of 1,000 connections from the old network x x x x x x x x x 3.1.2.2.5.2 to the new one 3.1.2.2.5.3 Creation of 6 measurement and control zones x x x x x x x x x 3.1.2.3 Reduction of Commercial Losses 3.1.2.3.1 Xai-Xai: 3.1.2.3.1.1 Replacement of 17,000 faulty meters x O O x x x x x x 3.1.2.3.2 Chibuto 3.1.2.3.2.1 Replacement of 2,000 faulty meters x O O x x x x x x 3.1.2.3.3 Chokwe: 3.1.2.3.3.1 Replacement of 2,000 faulty meters x O O x x x x x x 3.1.2.3.4 inhambane 3.1.2.3.4.1 Replacement of 9,000 faulty meters x O O x x x x x x 3.1.2.3.5 Maxixe 3.1.2.3.5.1 Replacement of 7,000 faulty meters x O O x x x x x x 3.1.2.3.6 Training and qualification 3.1.2.3.6.1 Training and qualification for 5 operational areas x x O x x x x x x 3.2 Energy Efficiency Program 3.2.1 AdRM Maputo Energy Audit and pumping design system x x x x x x x x x 3.2.1.1 improvement Replacement of old and inefficient pumps and x x O x x x x x x 3.2.1.2 installation of VSD 3.2.2 AdR South Energy Audit and pumping design system x x x x x x x x x 3.2.2.1 improvement Replacement of old and inefficient pumps and x x O x x x x x x 3.2.2.2 installation of VSD Grants Program for Capacity Building and 3.3 Institutional Development of Water Utilities 3.3.1 AdRM Maputo 3.3.1.1 Infrastructure construction and rehabilitation x O O x x x x x x 3.3.1.2 Supply of equipment x x x x x x x x x 3.3.1.3 Training and qualification x x x x x x x x x Risks and Impacts that would prohibit the activity (RA) from being undertaken under PforR resettlement of a scale or nature that will have significant adverse Air, water, or soil contamination Activities that involve the use of or access to land and/or natural Significant cumulative, induced, impacts, or global impacts such Large-scale changes in land use conflict within or among, social impacts on affected people, or Adverse E&S impacts covering degradation of critical natural expose workers to significant leading to significant adverse risks to health and personal (including ethnic and racial) Workplace conditions that the use of forced evictions habitats or critical cultural discrimination against, or as greenhouse gas (GHG) large geographical areas, Significant conversion or impacts on the health of including transboundary Land acquisition and/or forced or child labor Marginalization of, or indirect impacts heritage sites ecosystems emissions resources groups safety No. PforR Results Area Training of implementing agencies to ensure resilient x x x x x x x x x 3.3.1.4 projects 3.3.1.5 AdRMM Women Empowerment Program x x x x x x x x x Additional activities from the Utilities of the Future x x x x x x x x x 3.3.1.6 Plan 3.3.2 AdR South 3.3.2.1 Infrastructure construction and rehabilitation x O O x x x x x x 3.3.2.2 Supply of equipment x x x x x x x x x 3.3.2.3 Training and qualification x x x x x x x x x Training of implementing agencies to ensure resilient x x x x x x x x x 3.3.2.4 projects 3.3.2.5 AdRS Women Empowerment Program x x x x x x x x x Additional activities from the Utilities of the Future x x x x x x x x x 3.3.2.6 Plan 3.4 Strengthening of the regulatory role Development of mediation tools for potential conflicts and relationship between Public Operators x x x x x x x x x 3.4.1 and Private Operators Review and elaboration of criteria for the definition of fairer socio-economically sustainable rates and x x x x x x x x x 3.4.2 tariffs Consolidation of the expansion of the regulatory action of the Regional Delegations through the construction of the South regional office in x x x x x x x x x Inhambane and the completion of the work on the 3.4.3 Xai-Xai office Elaboration and publication of Technical Guides for regulation on the requirements of the public water x x x x x x x x x 3.4.4 supply and sanitation service Implementation of the complaints management system in accordance with duly stipulated rules and x x x x x x x x x 3.4.5 deadlines Risks and Impacts that would prohibit the activity (RA) from being undertaken under PforR resettlement of a scale or nature that will have significant adverse Air, water, or soil contamination Activities that involve the use of or access to land and/or natural Significant cumulative, induced, impacts, or global impacts such Large-scale changes in land use conflict within or among, social impacts on affected people, or Adverse E&S impacts covering degradation of critical natural expose workers to significant leading to significant adverse risks to health and personal (including ethnic and racial) Workplace conditions that the use of forced evictions habitats or critical cultural discrimination against, or as greenhouse gas (GHG) large geographical areas, Significant conversion or impacts on the health of including transboundary Land acquisition and/or forced or child labor Marginalization of, or indirect impacts heritage sites ecosystems emissions resources groups safety No. PforR Results Area Promotion of the image of AURA, IP through advertising, marketing plan and production of x x x x x x x x x 3.4.6 leaflets 3.4.7 PPA (Small Water Supply Providers) integration study x x x x x x x x x 3.4.8 Strategic technical assistance for AURA, IP x x x x x x x x x 3.4.9 Development of the human capital of AURA, IP x x x x x x x x x Key X The impact described will not arise or is highly unlikely to arise The impact described could arise but is unlikely given the limited scale of the RA and O subject to implementation of good international industrial practice (GIIP) - compliance with which may require some local capacity building and training Note A number of Results Areas are specifically designed to enhance positive outcomes in relation to the potential impacts described (e.g: social conflicts) and to enhance the capacity of the responsible institutions. This is not acknowledged in the table which is designed only to screen Results Areas for significant negative E&S risks and impacts ANNEXURE 5 Relevant legal framework on environmental and social aspects and on water sector institutional organisation Table A3.1: Relevant Legal Framework on Environmental and Social Aspects Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR CONSTITUTION Revised Constitution The State is required to promote initiatives that ensure of Mozambique ecological balance and preservation of the environment, (2018) for the benefit of all citizens. The constitution promotes, supports, and values the development of women and encourages their growing role in society, and provides special protection for children, the elderly, and the disabled. It establishes that the Public Administration is structured on the principle of decentralisation and deconcentrating. ENVIRONMENT AND SOCIAL MANAGEMENT Resolution 5/95 - The policy provides the basis for all environment law. The Project should strive to National While recognising the imperative of economic growth, it meet sustainable development Environmental Policy emphasises the need to ensure sustainable practices, goals, ensuring safe, clean, (GoM 1995a) balancing socio-economic development and drinking water for as many environmental protection. To achieve sustainable urban beneficiaries as possible outcomes, the Policy requires, among other things, that at fair rates that support both environmental considerations are integrated into consumers and service socioeconomic planning, the management of the providers. country’s natural resources and the protection of ecosystems and of essential ecological processes. Law 20/97 - Defines the legal basis for the sound use and The Project should strive to Environmental Law management of the environment towards the sustainable meet the sustainable (GoM 1997a) development of the country. The Environmental Law development principle defined applies to all public and private activities that may directly by the Environmental Law, or indirectly affect the environment. throughout its life cycle. This ESIA is part of that effort. Decree 54/2015 - Establishes the ESIA Process as one of the principal The physical project activities Regulation for instruments for environmental management, aimed at shall comply with this Environmental mitigating the negative impacts that public or private regulation to get environmental Impact Assessment projects may cause to the natural and socio-economic licensing for construction and (GoM 2015b) environment, through the preparation and licensing of operation phases. environmental studies prior to commencement of the projects. The decree defines the ESIA process, the required environmental studies, public participation requirements, the study review process, and the process for decision-making and licensing. It applies to all public or private activities with direct or indirect influence in environmental components that are listed in the Annexures, which divide projects into categories (Category A+, A, B and C) which reflect their likely risk. Projects are categorised by the regulator at the beginning of the ESIA process and thereafter follow specific procedural requirements, with Category A+ and A project being subject to full ESIAs (including ESMP), preceded by Scoping reports and definition of ToR, Category B projects subject to a Simplified ESIA (a basic assessment, undertaken largely on the basis of pre-existing available Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR information, including an ESMP), and Category C projects requiring a simplified ESMP only. The environmental license issued by the regulator is required prior to applying for any other license (e.g.: issuing of DUATs under the Land Law or water use licenses under the Water Law). Decree 25/2011 It establishes that the ministry that oversees the The PforR implementing Regulation on the environment has the duties of conducting public audits agencies must have an ESMS Environmental and promoting private audits. Establishes the regime for that allows them to promptly Auditing Process the registration of environmental auditors. respond to eventual public or Decree 11/2006 Regulates the supervision, control and verification of private environmental audits project compliance with national environmental and inspections Regulation on Environmental protection standards. Inspections Ministerial Diploma It defines the format, general structure and content of 130/2006 the EIA report. General Directive for the Preparation of Environmental Impact Studies Ministerial Diploma Defines the basic principles, methodologies and To be followed in all PforR EIA 130/2006 procedures for the Public Participation Process in the EIA processes General Directive for process. Considers public participation an interactive the Public process that begins in the design phase and continues Participation Process throughout the life cycle of the project. in Environmental Impact Assessment ENVIRONMENTAL QUALITY Decree 18/2004, The Regulations are in terms of Article 10 of the Air emissions and effluents shall revised by Decree Environment Law, and are concerned with environmental comply with the established 67/2010 quality standards for air, water and soil. Regarding air, the standards. Regulations on regulations establish standards for emission limits related Environmental to specified industrial processes and for ambient air Quality and Emission quality. Regarding water, the regulations specify the Standards quality standards for potable water. Standards for effluent are set out, including domestic discharges (understood to mean discharges from sewage treatment works). The location of an emission from any source must be determined during the environmental licensing process so as to ensure that there is no change in the quality of the water in the receiving body, preventing the use of its water for other purposes. Additions and amendments in are included in a supplement promulgated in 2010 (Decree 67/2010). The decree amends the Air Quality Standards and adds Appendices which cover organic and inorganic carcinogenic atmospheric pollutants and substances with odorous properties. WASTES Decree 94/2014 Establishes the legal framework for urban solid waste To be considered during Management of Solid management in Mozambique so as to minimise negative construction and operation Urban Waste impacts on social health and the environment. These activities. Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR regulations set out rules for classification of solid waste, the forms of waste segregation, waste collection and transport, waste treatment and waste disposal. Decree 83/2014 Establishes the legal framework for hazardous waste Construction and operation Management of management in Mozambique so as to minimise negative activities shall have a proper Hazardous Waste impacts on social health and the environment. management of hazardous waste, in line with this decree. WATER RESOURCES AND WATER SUPPLY Law 16/1991 Establishes the basis for management of water resources The project will be guided by National Water Law and advocates a “user pays� and “polluter pays� policy. the principles stated in this law. Provides the legal basis for coordination of activities in the water sector. The Law defines the principles of water use and management to be taken into account in the implementation of water reforms. The law emphasis the protection of public interests and sets out principles for the sustainable use of water. Creates the National Water Cadastre, to register all concessions and licenses for the use of water and traditionally established common uses (Article 10). Establishes that water resources management is carried out by regional water administrations, structured on the basis of river basins (Article 18). Prioritises the water use for human consumption (Article 26). Decree 60/98 The Water Tariff Policy established the principles to be The policy provides the Water Tariff Policy considered in defining tariff systems, with particular underpinning for reference to the different uses of water resources. The implementation of the DMF, priorities set by the policy concern the definition of based on user-payer and socially and economically responsible tariffs for each tariff polluter-payer; protection of scheme, with the aim of operation and maintenance the water resources and (OPEX) cost recovery in the short term and the recovery efficient use; environmental of investment costs (CAPEX) in the medium-term. sustainability of its exploration; The policy promotes the adoption of socially responsible as well as the decentralisation principles. It provides support for the user-pays and the and participative management polluter-pays principles, the principle of equity, of of the water resource. environmental protection and the efficient use of water, and for the sustainable and participatory management of water systems through the progressive decentralisation of regulation and management powers to local authorities. Decree 20/2003 Establishes basic elements for sizing and technical Regulation of Public requirements for water supply and wastewater drainage Water Distribution systems and their respective complementary installations and Wastewater and provisions related to protection of water sources, Drainage Systems including boreholes (based Muon hydrogeological studies). Establishes responsibilities in the operation of water supply and wastewater drainage systems. Defines a set of requirements to ensure the safety, hygiene, and health of workers in the operation of public water systems and public domestic, industrial and rainwater drainage systems. Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR Ministerial Diploma It establishes the quality parameters for water intended 180/2004 for human consumption and the methods for its control, Water Quality with the aim of protecting human health from the Regulations on Water harmful effects of any contamination that may occur in Quality for Human the different stages of the water supply system, from Consumption catchment to availability to the consumer. The Ministry of Health is the competent entity to ensure the control of the implementation of this regulation. The responsibilities are distributed being at National level, the Department of Environmental Health and the National Laboratory for Hygiene, Water and Food; at Provincial level, as the Centres for Environmental Hygiene and Medical Examinations and the Provincial Laboratories for Water; and at local level, the Health Centres. Decree 43/2007 The Regulations on water licensing and concessions Regulations regulates the process to obtain the rights of private use Regarding Water and benefit of water. The regulations emphasise Licensing environmental issues and require an EIA and Environmental License or its official exemption by the environmental regulator (MTA) as a condition of the rights for water use. Decree 18/2009 The Decree expands the scope of the DMF to become part of the wider public system for water distribution and sanitation. It provides an expanded mandate to the CRA to regulate all public water supply systems and sanitation through configurations and regulatory mechanisms. The same Decree extends the CRA mandate to the regulation of all water supply and sanitation systems. Decree 18/2012 It sets out the rules and procedures for prospecting, Regulations on the drilling and extraction of groundwater and the criteria to Prospecting and be observed in drilling holes, wells and other means of Extraction of extracting water, as a basis for licensing by the Regional Groundwater Water Administration (ARA). Article 6 requires that drilling does not cause leakage, chemical or bacteriological contamination of the aquifer, that all wells or boreholes are fitted with devices that prevent waste of the water, that dry boreholes be closed, and the land restored and that a minimum distance between boreholes of different users is to be approved by the Minister in charge of the water sector. The content requirements of the license application for drilling and extraction are specified in the regulations. The Decree also establishes the mechanisms for the control of the exploration and production of groundwater, designed to protect water users from harmful effects resulting from contamination that may occur in the different stages of the water supply cycle. Establishes that drilling activities may only be carried out by qualified contractors (Article 25). It is mandatory to register the abstraction at the Regional Water Administration with territorial competence (Article 37). Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR Establishes the National Registry of Groundwater Sources to be quarterly updated by ARAs with information on underground water use. Decree 51/2015 The decree establishes the licensing process for private Regulation of the operators, based on the principles of complementarity to Licensing of Drinking public service and protection of public health, consumers, Water Supply by water resources and environment. Private Operators It defines the roles of the public institutions, including the definition of technical standards, water abstraction licensing, water tariffs, and expansion areas for public service. The license application includes, among others, the operating license issued by ARA, the water quality analysis report, the environmental impact notice issued by the competent authority. Decree 20/2016 The decree regulate raw water rates, as a way to Influences the commercial Regulation for the ensure coverage of management costs viability of supply of water by Setting of Raw Water PWPs Rates in Each Area of Jurisdiction of the Regional Water Administrations Decree 20/2016 The decree regulate raw water rates, as a way to ensure Influences the commercial Regulation for the coverage of management costs viability of supply of water by Setting of Raw Water PWPs Rates in Each Area of Jurisdiction of the Regional Water Administrations BIODIVERSITY Law 10/99, of July 7 Establishes the legal regime applicable to all natural and Decree 12/2002, values and resources in Mozambican territory and in the amended by Decree waters under its jurisdiction. No. 11 / 2003 - The cutting of trees requires an authorisation request Law of Forests and (Art.105) Wildlife its - Forest fires are not allowed (Art.106) Regulations Annex II of the Regulation lists the protected animals that may not be hunted. Law 16/2014, It establishes the basic principles and standards on the changed by Law protection, conservation, restoration and sustainable use 5/2017 of biological diversity in conservation areas, as well as the Biodiversity framework of an integrated administration, for the Conservation Law sustainable development of the country. Ministerial Diploma Establishes that net gain is required in case of any 55/2022 significant residual adverse impact on Key Biodiversity Directive for Areas (KBA) or critical habitats as per IFC or High Biodiversity Offset Conservation Value Areas, according to FSC. Is applied to public and private projects. Decree 45/2006 Establishes legal bases for the protection and Regulation for the conservation of areas that constitute maritime, lake, and Prevention of river public domain, beaches, and fragile ecosystems. Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR Pollution and the It protects wetlands and mangroves, prohibiting the Protection of the discharge of pollutants into rivers or wetlands, Coastal Marine uncontrolled burning or the development of any activity Environment that involves substantial alteration of the hydrological regime of these areas (Art. 65). The construction of infrastructure in partially protected areas associated with bodies of water should only be carried out in compliance with environmental and landscape quality norms and standards in force. In the case of fragile ecosystems (including mangroves), this is only permitted if a special license is obtained, and the environmental legislation is respected (Artº 67) Decree 25/2008 Establishes legal norms that prevent the introduction of Regulation on the invasive alien species that threaten ecosystems, habitats control of invasive or species in its territory, to the extent that they include alien species the control and elimination of such species. Restrictive activities involving invasive alien species are prohibited without prior authorisation (art. 8) DISASTER RISK REDUCTION AND MANAGEMENT Law 10/2020 and Provides for climate resilience and defines disaster Decree 76/2020 response Disaster Risk Establishes the legal regime for disaster risk Reduction and management, including the prevention and mitigation of Management Law the destructive effects of disasters, the development of and its Regulation relief and assistance actions, as well as reconstruction and recovery actions in affected areas The concept of disaster includes a) floods; b) inundations; c) droughts; d) cyclones; e) fires; f) wildfires; g) epidemics; h) erosion; i) landslides; j) oil spills. According to the Regulation (Art. 22), risk zones are classified as High, Medium and Low risk. The demarcation and signage of inundation and flood risk zones are the responsibility of local government bodies and municipalities, in coordination with the coordinating entity for risk management and reduction and watershed management. In the High-Risk Areas defined locally under Decree No. 76/2020, no Land Use Right (DUAT) can be granted, and the construction of infrastructure is prohibited, except through the application of appropriate and approved technology. LABOUR AND OCCUPATIONAL HEALTH AND SAFETY Law 23/2007 It defines the general principles and establishes the legal To be complied by the PforR Labour Law regime applicable to individual and collective subordinate agencies, as well as for its labour relations (national and or foreign), provided on contractors and subcontractors behalf of others and for remuneration. Define provisions for employment of young people between the ages of 15 and 18 (Art 23 and 26); define special rights for working women during pregnancy and after childbirth (Art. 11); protection of paternity and maternity Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR Decree 62/2013 Establishes the legal regime for occupational accidents Occupational and occupational diseases, applicable to national and Accidents and foreign employees. Occupational Diseases Regulation Law 19/2014 Establishes the rights and duties of people, workers or job Law for the applicants living with HIV/AIDS. It states that HIV/AIDS Protection of a workers or job applicants should not be discriminated Person, Worker or against because they are HIV-positive, and the principle Job Applicant Living of equal rights and opportunities must be ensured. It with HIV/AIDS establishes the employer's obligation to provide assistance to HIV-positive workers. Decree 45/2009 It establishes the rules concerning inspection activities as Regulation on the part of the control of the legality of work conditions. General Labor Article 4(2) provides for the employer's responsibilities Inspectorate regarding the prevention of occupational health and safety risks for the employee. LAND AND RESETTLEMENT Law 19/97 It establishes as a main principle that land is the property New constructions shall avoid Land Law, of the state and cannot be sold, alienated, mortgaged or PPZ of environmental sensitive complemented by its pledged, in accordance with the Mozambican areas. regulation in Decrees constitution. 66/98 1/2003 Defines, at the public domain level, total and partial Land acquisition and protection zones, including protection zones for resettlement for pipeline environmentally sensitive areas (such as rivers, lakes, installation must take into springs and coastline) and infrastructure. consideration the ROW It establishes land use rights, recognizing consuetudinary established in this law. rights. Water pipelines have as an associated partial protection zone (PPZ) a 50 m strip bordering them. Dams and reservoirs have a PPZ that corresponds to the surrounding 250 m strip of land. It establishes that in the case of the need to restrict the right to use and benefit from land for the installation of infrastructure of public interest, the public or private entity must compensate the holder of the right in an amount that represents the actual loss due to the non- use of the affected part, which will then constitute the easement. Law 19/2007 Its objective is to guarantee the organisation of the To be considered in case of Land Planning Law national land and the sustainable use of its natural expropriation resources; the observance of legal, administrative, and cultural conditions; to provide favourable conditions for the socioeconomic development of the country; the promotion of the quality of life of the population; and environmental protection and conservation. "Expropriation for public interest, necessity or utility shall give rise to the payment of fair compensation, under the terms of the Law, to be calculated so as to compensate, among others: a) the loss of tangible and intangible property; b) the disruption of social cohesion; c) the loss of production assets." (Art. 20). Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR Decree 23/2008 Expropriation for land planning purposes is considered to To be considered in case of Regulation of the be carried out in the public interest when its final expropriation Land Planning Law objective is to safeguard a common interest of the community, and may be declared in the cases (...) of acquisition of areas for the implantation of economic or social infrastructure with a major positive social impact (Art. 68) Expropriation is always preceded by a public declaration of interest, necessity or public utility of the area to be expropriated (to be issued by the Government), in which the grounds for the expropriation are indicated (Article 69) Expropriation for public interest, necessity or utility always gives rise to payment of fair compensation, to be paid prior to transfer of ownership or possession of the property to be expropriated. The compensation must cover not only the real and current value of the expropriated property at the date of payment, but also the emerging damages and loss of profit of the owner arising from the dispossession of his property. (Art. 70) Ministerial Diploma Defines compensation payment methods: in cash (in a To be considered in the 181/2010 single instalment) or in kind (in the case of residential resettlement and livelihood Directive on the buildings or constructions this is done through the restoration plans Expropriation Process construction of equivalent property) for Land Planning Defines how compensation is calculated for real estate Purposes (based on typology, importance, quality, location and depreciation) and for plants (based on age, growth period, average annual production, sale price) and annual crops (based on production per hectare) Decree 31/20012 Defines that the proponent of the activity is responsible Any required resettlement shall Regulation on the for the development and implementation of the comply with these Resettlement Process resettlement plan, in addition to bearing the costs of the requirements. Resulting from process. Approval of Resettlement Plans is the Economic Activities responsibility of the District Government (Art. 9.1) and will be preceded by the issue of a favourable technical opinion from the sector responsible for territorial planning, after hearing the sectors of agriculture, local administration and public works, and housing (Art. 9.2). Ministerial Diploma It aims to operationalise the process of Resettlement No. 156/2014 Resulting from Economic Activities. Technical Directive of The technical directive defines the procedures and steps the Process of to be followed in the preparation of the resettlement Elaboration and plan. The steps in the preparation of the resettlement Implementation of plan are as follows: Resettlement Plans Phase 1. Physical and Socioeconomic Survey Report Phase 2. Resettlement Plan Phase 3. The Resettlement Implementation Action Plan Decree 109/2014 Regulates the use of partial protection zones for roads, To be considered in activities in Regulation of the Use defining permissions and restrictions on their use. roads’ PPZ of Roads and their Protection Zones GENDER AND SOCIAL PROTECTION Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR Law 10/2004 It reiterates gender equality and provides that both Family Law women and men have rights to administer marital property and have equal rights to transfer and inherit property. Law 4/2007 Defines the Social Protection principles of universality, To be taken in consideration in Social Protection Law equality, solidarity, and decentralisation. Establishes that the revision of social tariff the social protection system is structured in three levels criteria. of: Basic, Mandatory and Complementary Social Protection. Basic Social Protection covers nationals who are incapable of work and who do not have the means to meet their basic needs, namely: a) people in absolute poverty; b) children in difficult circumstances; c) elderly people in absolute poverty; d) disabled people in absolute poverty; e) people with chronic and degenerative diseases. Law 7/2008 Any person under the age of 18 is considered a child (Art. To be considered by workers, Children's Rights 3). The prohibition of negligent, discriminatory, violent or contractors and subcontractors. Promotion and cruel treatment of children is defined, as well as any form Protection Law of exploitation or oppression (Art. 6). Cases of mistreatment, abuse or violence against children must be reported to the nearest police authority (Art. 20) Law 29/2009 It criminalises gender-based violence and domestic To be considered by workers, Law on Violence violence (Article 1) and considers it a public crime (Article contractors and subcontractors. Against Women 21). The law recognises rape within marriage by the spouse and penalises it (Article 17). It also penalises sexual involvement with knowledge of having an infectious disease with sentences of up to 12 years in prison (Article 18). Law 3/2014 It aims to strengthen the legal mechanisms to promote To be considered by workers, Elderly Protection and protect the rights of the elderly to life, liberty, health, contractors and subcontractors. Law respect, and dignity, through the implementation of public social policies that allow for a healthy aging in dignified conditions. It establishes responsibilities for the state to guarantee the protection of the elderly, namely through social protection. Defines priority in attendance at public and private agencies that provide services to citizens Decree 53/2008 Establishes that buildings for public use must guarantee To be considered in all buildings Regulation for the accessibility for people with reduced mobility, defining a for public use to be funded by Construction and transitory period of 10 years for adaptations. the PforR. Maintenance of Technical Devices for Accessibility, Circulation and Use of Public Places and Services Systems for People with Physical Disabilities or Restricted Mobility. CULTURAL HERITAGE Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR Law 10/88 It was formulated to legally protect tangible and To be taken in consideration in Cultural Heritage Law intangible assets of the Mozambican cultural heritage. any excavation activity. Establishes that any finding that are likely to be classified as cultural heritage asset must be reported to the nearest administrative authority. Decree 27/94 Its object is to protect the different categories of movable To be taken in consideration in Regulation for the and immovable material goods, which, due to their any excavation activity. Protection of archaeological value, are assets of Mozambique's cultural Archaeological heritage. Heritage "The author of any fortuitous discovery of archaeological elements, must communicate with a deadline of 48 hours to the local authority, which will notify the competent organs for culture, as soon as possible, and take the appropriate measures for the protection of said elements." (Art. 10) "All projects that involve works of excavation, removal or enlargement of earth, or the removal of submerged or buried objects in particular must include preliminary archaeological prospection and safeguard archaeology work in the area covered by the works, and must include for this purpose in the respective budget an allocation of not less than 0.5 percent of the total cost of the works." (Art. 12) Table A3.2: Relevant Legal Framework on Water Sector Institutional Organisation Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR WATER SECTOR – INSTITUTIONAL ASPECTS Resolution 46/2007 The policy defines specific objectives to improve National Water Policy water and sanitation services and increase the degree of coverage in both urban and rural areas. Establishes medium (2015) and long term (2025), with a focus on efficient and responsible water resources integrated management. According to the policy, the Government is to define priorities, guidelines and minimum service delivery levels, but not deliver services, promoting the involvement of the private sector and municipalities. Integrated water management is promoted by the policy as a means of optimising the benefits to communities, while also considering environmental impacts and sustainability of resources over time. The policy recognises community participation in decisions about water supply and the role to be played by the private sector in supplying water in urban areas. Law 16/1991 Article 17 of the Law establishes the National Water The project will be guided by the National Water Law Council (CNA). principles stated in this law. Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR Establishes that water resources management is carried out by regional water administrations, structured on the basis of river basins (Article 18). Decree 25/1991 Defines the organisation of the National Water Council (CNA) established under the Water Law. Decree 26/1991 Defines the organisation of the five regional water authorities (ARA’s), established under Article 18 of the Water Law. The ARA’s are public entities responsible for the operational management of water resources and provision of services, under the auspices of the MOPHRH and the National Directorate of Water. Decree 16/1995 The decree establishes the National Water Council (CNA) under the Water Law (Law 16/1991). The CNA is a consultative body to the Council of Ministers and an inter-ministerial coordination body for water management policy, responsible for opinions on relevant aspects of sectoral policy. The Ministry of Land and Environment is one of the ministries that take part in this council. Law 2/97 Approves the legal framework for the implementation of local authorities. As per article 6, municipalities have among their attributions the public supply. Provisions of decree 72/98 are without prejudice to this decree Law 11/97 Defines and establishes the legal regime of municipal finances and assets. Provisions of decree 72/98 are without prejudice to article 23 and 25 of this law. As per Art. 23, the Government's responsibility to approve the general norms and regulations relative to the realisation of public investments and the respective inspection, without prejudice to the exercise of the regulatory competence of the municipalities. Municipalities have the responsibility to invest in water supply infrastructures (Art. 25). Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR Decree 72/98 The decree provides the legal basis for the creation The decree established the legal Delegated of a Delegated Management Framework (DMF) for basis for the Framework for Management water supply, pursuant to Article 153 (1) of the Delegated Management, which is Framework (DMF) amended Mozambique Constitution. the key mechanism used to The decree acknowledges the poor functioning of promote efficient water supply to water supplies systems to urban and rural urban communities. populations and establishes the principles and rules that will govern the delegation of the exploration and management and of water supply systems under state control to private operators or to public companies. The DMF promotes the integration of private management in the water sector in Mozambique, as a necessary condition for improving the quality and efficiency of the water services, responding to the objectives defined in the National Water Policy. The decree defines the roles and responsibilities of the various institutions involved in the DMF, including the Ministry of Public Works and Housing36, the National Directorate of Water37, the Water Supply Regulation Council (CRA)38 and the municipalities. The decree names the Fund for Investment and Assets of Water Supply (FIPAG) as the institution responsible for overseeing the implementation, management, execution and control of private water suppliers. According to Article 8 of the Decree, both the CRA and FIPAG are to be formally created by separate statutes. The decree provides the legal basis for the establishment of the Water Supply Regulatory Council (which became the Water Regulatory Authority in 2019) and the Fund for Investment and Assets of Water Supply (FIPAG). Decree 73/1998 The Decree establishes FIPAG as the principal owner Establishment of of the water supply systems in Mozambique’s large FIPAG cities, and the responsible institution for asset management of water supply systems under the provisions of the National Water Policy. Decree 74/1998 The Decree establishes the CRA as the entity Establishment of the responsible for ensuring the protection of customer CRA interests and the economic sustainability of the water utilities under its auspices, by reconciling the interests of operators and their customers. The CRA is made responsible for the publication of regulations specific to water sector operation, particularly concerning its economic, technical and social regulation. Ministerial Diploma No. 92/2002 36 Now the Ministry of Public Works, Housing and Water Resource Management (MOPHRH) 37 Now the National Directorate for Water Resources Management (DNGRH) 38 Now the Water Regulatory Authority (AURA) Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR approved the Procedural Rules of the CRA, as provided for in Decree No. 74/1998 Ministerial Diploma The Diploma extends the DMF to cover Xai - Xai, 67/2004 Chókwè, Inhambane and Maxixe and transfers the responsibility for their management from the local authorities to FIPAG. Decree 18/2009 The Decree expands the scope of the DMF to become part of the wider public system for water distribution and sanitation. It provides an expanded mandate to the CRA to regulate all public water supply systems and sanitation through configurations and regulatory mechanisms. The same Decree extends the CRA mandate to the regulation of all water supply and sanitation systems. Decree 63/2010 The Decree amends article 4 by redefining the roles and responsibilities of FIPAG, assigning to it the necessary competence to ensure the transitional management and operation of the water supply systems not yet under concession or still under contract management. Decree 23/2011 The Decree changes the CRA’s name to the Water Regulatory Authority (AURA), becoming a …..public institute. The decree clarifies AURA’s enforcement mechanisms. AURA is assigned the responsibility of maintaining a balance between the interests of the State and of customers, ensuring, at the same time, the quality of service provided and the operators’ economic sustainability. Decree 7/2012 The Decree assigns to FIPAG the responsibility to propose the establishment of commercial companies, foundations or associations whose object is water service provision, and whose majority shareholder is FIPAG. The same Decree removed the powers of water services provision from FIPAG, as provided for in Decree No. 73/98, thus promoting the full opening up of the water sector to private sector participation. Decree 8/2019 The Decree provides the legal basis for the CRA (now AURA) to regulate drinking water supply by private sector suppliers, including setting tariffs, resolving conflicts and protecting the consumer, as well as assessing the quality of services provided and recommending the renewal or withdrawal of the private operator’s license. Decree 73/2020 Defines the organisation, operation and management of Ara-Sul as a Public Institute. The decree describes the principles according to which ARA-Sul is managed as a) environmental protection; b) adaptation to climate change; c) prevention and mitigation of floods and droughts; d) Name of Policy / Law Relevant Provisions of the Policy / Law / Regulation Relevance for Environmental / / Regulation Social Management in current PforR unity and coherence of the hydrographic basin management; e) rational and sustainable use of available water resources; f) polluter pays; g) user pays; h) conservation of water resources; i) profitability of hydraulic infrastructure; j) prevention of harmful effects of water; k) participative and integrated management. Functions of Ara-Sul specified in the Decree include: • inventorying water resources and water needs for maintaining the National water resources register • issuing of licenses and concessions for the abstraction and use of raw water (including licensing of private water suppliers), definition and implementation of structural measures aimed at flood protection and drought mitigation • implementation of measures for the protection of water resources • promotion of the sustainable use and harnessing of water resources, through monitoring, dissemination of legislation, awareness-raising campaigns and other appropriate means • operation, maintenance and inspection of hydraulic infrastructure for water storage and flood protection in the public domain and the inspection of infrastructure in the private domain • drafting and implementation of raw water allocation regulations • declaration and imposition of water conservation regimes affecting the supply and use of raw water in emergency situations such as drought, contamination of waterways and other situations. Decree 33/2021 & Provide the legal basis for the creation of AdRMM Decree 34/2021 and AdRS respectively, which are commercial companies whose shareholding is fully held by FIPAG, which may sell up to 49%. Both have the responsibility of operating the water supply system under FIPAG ownership through a concession contract, with commercial, financial and administrative functions associated with the operation and maintenance of the system defined under the contractual terms. AdRMM operates the water supply systems in the metropolitan area of Maputo (Maputo, Matola and Boane) while AdRS operates the systems of Xai-Xai, Chokwe, and Chibuto in Gaza Province, and Maxixe and Inhambane in Inhambane Province ANNEXURE 6 Consultation Annexure 6A - List of Stakeholders No. Name Institution Position 1 Castigo Cossa AdRMM PCA 2 José Barata AdRMM Administrador Técnico 3 Joaquim Bié AdRMM Director do PAIRP 4 Augusto Chipenembe AdRS PCA 5 António Vilanculos AdRS Administrador Técnico 6 Eduardo Congolo FIPAG-Xai-Xai Director 7 Bailio Dengo FIPAG-Chókwe Director 8 Filipe Sigauque FIPAG-Chibuto Director 9 �ires da Silva FIPAG-Inhambane Director 10 Mauro Chissano FIPAG-Maxixe Director 11 Nordino Ticongolo FIPAG Especialista Ambiental 12 Elidio Khossa FIPAG Director dos Serviços Centrais de Planificação e Desenvolvimento 13 Belarmino Chivambo FIPAG Director dos Serviços Centrais de Investimento 14 Sheilla Abdul FIPAG Chefe de Departamento de Investimentos 15 Kelia Laweki FIPAG Chefe de Departamento de Projectos e Ambiente 16 Sergio Cavadias FIPAG Director do Gabinete de Implementação dos Projectos de �gua do Grande Maputo 17 Ronaldo Inguane FIPAG Especialista de Monitoria & Avaliação 18 Tivi Fumbeco FIPAG Técnico de Salvaguardas Ambientais e Sociais 19 Pedrito António FIPAG Especialista de Planificação de Investimentos 20 Abilio Murima FIPAG Director do SCO 21 Serafino Mucova FIPAG Especialista de salvaguardas Ambientais e Sociais 22 Marcos Mponda FIPAG Especialista de �guas Subterrâneas 23 Arlindo Correia DNAAS Técnico de Abastecimento de �gua 24 Raúl Mutevué DNAAS Director Nacional 25 Teresa Miguel DNAAS Chefe do Departamento de Abastecimento de �gua 26 Venâncio Taímo DNAAS Chefe da Repartição de Abastecimento de �gua 27 Suzana Saranga Loforte AURA Presidente do Conselho de Administração 28 Ivete Sotomane AURA Técnica 29 Humberto Gueze AURA Asessor do Conselho de Administração 30 Joaquim Jorge AURA Chefe de Dep. Monitoria & Avaliação 31 António Nhampossa AURA Gestor Financeiro 32 Messias Macie DNGRH Director Nacional 33 Eduardo Jossefa DNGRH Chefe do Departamento de Obras Hidráulicas No. Name Institution Position 34 Egidio Govate DNGRH Chefe do Departamento de Planificação e Cooperação 35 Edgar Chongo ARA-Sul Director Nacional 36 Lizete Dias ARA-Sul Chefe do Departamento de Recursos Hídricos 37 David Mucambe ARA-Sul Técnico 38 Yannik Beete ARA-Sul Técnico de Salvaguardas Ambientais e Sociais 39 Delário Sengo ARA-Sul Chefe do Departamento de Recursos Hídricos 40 Lenay Alexandra Blason UNICEF Chief WASH 41 Pedro Pimentel WaterAid Engenheiro de �guas 42 Farida Saifodine Dutch Embassy Especialista de �gua 43 Joep Vonk Vitens Country Manager 44 André Uandela IRC WASH Especialista de �gua 45 Bento Mualoja Plataforma Director Executivo Moçambicana de Agua 46 Waltagi Kutane World Health Climate, Environment and Health Organization Technical Officer 47 David Sanfiel European Union WASH Officer 48 Rita Zacarias Department for Program Manager International Development 49 Rute Nhamucho Water and Sanitation Directora Executiva Infrastructures Administration 50 Calisto Cossa Associação Nacional Presidente dos Munícipios de Moçambique (ANAMM) 51 Manuel Alvarinho Manuel Alvarinho Water Consultant 52 Saturnino Chembeze Conselho Municipal de Director Municipal de Infra-estruturas Maputo Urbancas 53 Análio Tembe Conselho Municipal de Técnico Maputo - Departamento de �gua e Saneamento 54 Oliveira Nhamuage DPOP Maputo - Departamento de �gua e Saneamento 55 DPOP Gaza 56 Conselho Municipal de Xai-Xai 57 Conselho Municipal de Inhambane 58 Conselho Municipal de Chibuto 59 Conselho Municipal da Matola No. Name Institution Position 60 Governo do Distrito de Marracuene 61 Governo do Distrito de Boane 62 Governo do Distrito da Moamba 63 Adriano Chirute AFORAMO Presidente 64 Nelson cumaio AFORAMO Associado 65 Adelino Guambe AFORAMO Secretário Geral 66 Omar Khan Water and Sanitation Engenheiro de �guas for the Urban Poor (WSUP) 67 Hélder Domingos FACES Associação para Presidente �gua e Saneamento 68 Secretaria do Estado da Provincia de Maputo 69 Governo da Provincia de Maputo 70 Chefe do Posto Administrativo Moamba Sede 71 Chefe do Posto Administrativo Sabie 72 Chefe do Posto Administrativo de Pessene 73 Servicos Distritais de Planeamento e Infrastruturas de Moamba 74 Servicos Distritais de Planeamento e Infrastruturas de Marracuene 75 Servicos Provinciais de Terra e Ambiente - Maputo/Gaza 76 Direccao Nacional de Ambiente Annexure 6B - Proof of Public Notice in Noticias Annexure 6C - Outcome of the Consultation Meeting Mozambique Urban Water Security Project (P178653) Program for Results (PforR) Environmental and Social Systems Assessment (ESSA) Consultation Meeting FIPAG, Maputo February 7, 2023 Issue Raised Response As the works will be mainly in urban and peri- Agreed that the major works are foreseen in urban and peri- urban areas it is not clear how there will be urban areas with low biodiversity risk, although there are risks on biodiversity. proposed infrastructure, such as the permanent crossing of the Incomati river and the water abstraction in Inhambane (close to a lagoon system) that could result in biodiversity impacts, that shall be properly assessed and managed. There is a need to engage municipalities and Agreed. These are key stakeholders that should be engaged local leaders and clarify their roles, namely in during the whole process. the licensing of PWP. There is a risk of brackish water emerging due Agreed. The program already includes activities to to over-exploitation by private suppliers, who strengthen ARA-Sul capacity to manage aquifer exploitation have their boreholes licensed by ARA-Sul. and water quality to avoid overexploitation. There is a risk of the borehole protection Agreed. We could include in the ESSA a recommendation to zones being occupied with a resulting risk of strengthen FIPAG's surveillance of the protected areas. contamination. FIPAG must improve its ability to To be included in the ESSA. communicate before intervening on the field. The capacity to attend and respond to Agreed. The ESSA already includes recommendations to this consumers must be strengthened. effect. The ESSA recommendation for the The recommendation refers only to the integration of integration of GRM is not clear. Does it refer existing GRMs into FIPAG. Each entity will have its own to the integration of GRM of all entities GRM. We will clarify this further in ESSA. involved in PforR? ESSA recommends that the ESMS be in place To be discussed. before the start of the PforR implementation, but since it was felt that FIPAG has the capacity for environmental and social Issue Raised Response management it should be in year 1, to allow time to refine the procedures. Being a PforR how is it ensured that there are PforR allows FIPAG to request an advance of 25% of the funds to carry out the prior actions funding to cover the costs of the required studies and prior recommended in the ESSA? actions. Additional funds will only be made available once satisfactory results of the initial phase have been achieved. Annexure 6D – Partcipants in the Consultation Meeting LIST OF PARTICIPANTS – VIRTUAL STAKEHOLDER CONSULTATION 1 António Vilanculos (AdRS) 2 Jorge Simbine (AdRS Xai-Xai) 3 Jorge Uamusse 4 Kelia Laweki (FIPAG) 5 Liasse 6 Mendes Alcantara (FIPAG Inhambane) 7 Omar Khan 8 Pedrito António (FIPAG) 9 Rita Vieira (Hidrohidráulica e Ambiente, Lda) 10 Ronaldo Iguane (FIPAG Monitoria e Avaliação) 11 Julieta Felicidade Paulo (AURA) 12 Abatul Cardoso (AURA)