MANAGEMENT OF WATER SUPPLY PRIVATISED

Maputo, 28 Sep (AIM) - The management of the water supply ystems  in seven
Mozambican cities will be in the hands of a private operator as from 30 November,
under a contract signed in Maputo on Monday.

A consortium named +Aguas de Mocambique+ (+Waters of
Mozambique+) won the international tender for the management of
the water systems of Maputo, in the south, Beira and Quelimane in
the centre, and Nampula and Pemba in the north of the country.
The Maputo system also caters for the adjoining city of
Matola, while the Beira system extends to the city of Dondo,
about 30 kilometres to the northwest.

Aguas de Mocambique is led by the French company Saur
International, with 38.5 per cent of the consortium's capital.
31.5 per cent comes from the Portuguese company IPE-Aguas de
Portugal, and the remaining 30 per cent from Mazi-Mozambique. The
latter consists of a prominent Mozambican NGO, the Community
Development Foundation, headed by former education minister Graca Machel ,
and the private companies Norte Investimentos, FLOTUR, and MG-Mocambique
Gestores.

The government body that signed the contract with the
consortium was the newly established Water Supply Investment and
Assets Fund (FIPAG).

Privatising the management of urban water supply was one of
the conditions imposed by donors and funding agencies for the
provision of 117 million US dollars to improve the services.
Among the sources of this funding are the World Bank, the
African Development Bank, the Dutch government and the European
Union.

Of this money, 25 million dollars is earmarked for running
the services, while the remaining 92 million dollars will be used
to rehabilitate and expand the water supply network in all seven
cities.

For Maputo and Matola the contract is valid for 15 years,
whereas for the other cities it will expire after five years.
Under the contract, the Mozambican government remains the
owner of all infrastructures and water assets.