Mozambique's AdeM Public Water Company: Expanding Water Revolving Fund

• Mozambique's Water Revolving Fund is being urged to continue investing in the mechanism, which has proven effective in providing low-income households with access to piped water.
• The new strategy for the fund aims to consolidate progress by establishing a harmonized institutional model and standardized procedures.
• The fund's success depends on institutions' ability to implement the mechanism with rigor, transparency, and responsibility.

This mechanism removes one of the main economic barriers to accessing the service, and the new strategy represents a decisive step toward its consolidation.

The government of Mozambique is being urged to continue investing in the Water Revolving Fund, a mechanism that has proven effective in providing low-income households with access to piped water. According to Augusto Chipenembe, chairperson of AdeM, the public water company, the fund's success lies in its ability to remove economic barriers to accessing water services. The new strategy for the fund aims to consolidate this progress by establishing a harmonized institutional model and standardized procedures. This will enable the efficient management of resources and ensure the continuity of the initiative.

The Water Revolving Fund is an innovative financing model that allows for the maximization of available resources through continuous reinvestment of recovered funds. This approach has been recognized as a key factor in the fund's success, enabling it to multiply progressively and reduce the need for new financial injections. The fund's ability to increase access to piped water for low-income households is also seen as a significant social inclusion initiative in the water supply sub-sector. As Mozambique continues to invest in the Water Revolving Fund, lawyers advising on water supply projects should take note of the emphasis on harmonized institutional models and phased implementation aligned with the country's new institutional framework for water supply.

The expansion of the Water Revolving Fund is crucial for Mozambique's efforts to improve access to piped water, particularly for low-income households. The fund's success depends on the institutions' ability to implement the mechanism with rigor, transparency, and a strong sense of responsibility. As the country continues to invest in this initiative, it is essential to strengthen coordination among sector institutions, ensure rigorous management of the Fund, and guarantee timely replenishment of financial resources. This will not only ensure the continuity and expansion of the initiative but also contribute to the overall development of Mozambique's water supply sub-sector.

Lawyers advising on water supply projects in Mozambique should note the new strategy's emphasis on harmonized institutional models, standardized procedures, and phased implementation aligned with the country's new institutional framework for water supply.

Source: Original reporting via AIM