2010年-世界发展银行全球_Mozambique___Public_Expenditure_Review_for_the_Water_Sector_107页_3mb

Summary of the Public Expenditure Review for the Water Sector in Mozambique (May 2010)

Core Content

This report provides a comprehensive analysis of the water sector in Mozambique, focusing on the efficiency of public expenditure, the allocation of funds, and the challenges in translating increased funding into improved outcomes. It outlines the institutional framework, the role of donor funding, and the need for better coordination, planning, and management to achieve the Millennium Development Goals (MDG) related to water and sanitation.

Main Points and Recommendations

1. Institutional and Legal Framework

• The water sector in Mozambique is governed by multiple institutions, including:

  • DNA (National Water Directorate): Lead agency for water sector coordination.
  • ARAs (Regional Water Basin Agencies): Responsible for water resources management.
  • FIPAG (Water Assets and Investment Fund): Manages urban water through a delegated management framework.
  • CRA (Council for the Regulation of Water Supply Services): In charge of regulation.
  • AIAS (Water and Sanitation Infrastructure Management Agency): Manages urban systems outside the DMF through provincial boards.

• The sector lacks a strong coordination mechanism, despite the existence of various strategies and plans, including the Poverty Reduction Action Plan (PARPA), the National Strategy for Water Resources Management (WRM), and the Economic and Social Plan (PES).

• Recommendation: Establish a strong sector coordination mechanism to ensure integrated planning and budgeting across sub-sectors, especially with the increased number of stakeholders due to decentralization.

2. Funding and Expenditure Trends

• Between 2002 and 2008, water sector expenditure (excluding own-generated funding) increased from MZN 636 million to MZN 2.3 billion, a rise of 255%.

• Donors provide the bulk of capital funding, and their commitments have increased significantly. However, donor coordination has not led to a harmonized approach in fund allocation, procurement, disbursement, and reporting.

• The National Water Directorate (DNA) has a high dependence on external funding, which makes the sector vulnerable to fluctuations in donor support.

• Recommendation: Reflect the priority status of the water sector in domestic and decentralized funding allocations to reduce reliance on external sources.

3. Sector Performance and Access to Services

• Access to improved water sources increased by 3 million people between 1997 and 2008, with 1.7 million in urban areas and the rest in rural areas.

• However, the percentage of the population with access to improved water sources has only marginally increased, largely due to rapid urbanization and the difficulty in keeping up with population growth.

• Rural water points have a high breakdown rate, indicating inefficiencies in service delivery, while urban utilities rely heavily on government subsidies and face hidden costs that reduce their efficiency.

• Recommendation: Improve the efficiency of investments and reduce subsidies by focusing on sustainable service delivery and better cost management.

4. Efficiency of Expenditure

4.1 Allocative Efficiency

• The sector has not effectively allocated resources to meet the needs of the population, especially in rural areas where infrastructure breakdown is common.

4.2 Budget Efficiency

• Budget procedures are weak, and the Medium-Term Fiscal Framework (MTFF) lacks sufficient detail to support strategic decision-making.
• Annual deviations from the MTFF indicate poor alignment between long-term planning and actual budget execution.

4.3 Efficiency of Investments

• The high level of subsidies in the sector suggests inefficiency in investment use.

• In urban areas, utilities still have significant hidden subsidies, while in rural areas, infrastructure rehabilitation consumes a large portion of the budget, delaying expansion.

• Recommendation: Strengthen the budget cycle, improve the MTFF to support long-term planning, and link public investment funding to performance improvements.

5. Key Recommendations

• B1. Strong Sector Coordination

  • Establish a central coordination mechanism to ensure integration across sub-sectors and better policy alignment.

• B2. Improve Sector Investment Planning

  • Develop a long-term investment strategy that prioritizes cost-effective projects.
  • Ensure that the investment pipeline aligns with national and sector objectives.

• B3. Improve Predictability of Funding

  • Strengthen procurement, disbursement, and auditing functions to enhance the timeliness and amount of funds released.

• B4. Sharper Focus on Incentives

  • Introduce performance-based transfers and better poverty targeting in funding allocation.
  • Use monitoring systems to evaluate service performance (access, quality, sustainability).

• B5. Improve Investment Efficiency

  • Reduce subsidies by improving technology choices and location planning for rural water points.
  • Link urban utility funding to performance improvements and ensure that they cover basic operations and maintenance before expansion.

• B6. Promote Sustainable Tariff Setting

  • Implement more discriminatory tariff policies to better target the poor.
  • Improve billing and collection efficiency to reduce the need for tariff increases.
  • Address the skewed tariff structure that benefits non-residential users at the expense of residential ones.

6. Systemic Issues

• Improving Budget Procedures: Strengthen the budget cycle to ensure better alignment with long-term plans and improve the predictability of funding.

• Decentralizing Public Works Allocations: Enhance the ability of local governments to manage water projects effectively.

• Harmonizing Procurement and Monitoring: Reduce the number of parallel systems by aligning donor and government procedures for procurement, disbursement, and monitoring.

• Sustainable Counterpart and VAT Funding: Address the current partial solutions to ensure a more sustainable funding model.

• Donor Funding Predictability: Improve donor coordination and planning to ensure reliable and timely support for the sector.

Key Information

• MDG Targets: The water sector is working to meet the Millennium Development Goals, particularly in improving access to water and sanitation.

• Funding Sources: Donor funding is the main source of capital investment, while the sector's own revenue is limited and often insufficient to cover maintenance and operation costs.

• Sector Challenges: Inefficiencies in service delivery, high subsidy levels, lack of coordination, and weak budget procedures are major barriers to achieving MDG targets.

• Performance Indicators: The report highlights key performance indicators such as the use of improved water sources, operating cost coverage ratios, and non-revenue water (NRW) levels.

• Data and Tools: The use of the Joint Monitoring Programme (JMP), the Economic and Social Plan (PES), and the Medium-Term Fiscal Framework (MTFF) is emphasized for better planning and performance tracking.

Conclusion

The water sector in Mozambique has seen a significant increase in funding but has struggled to translate this into improved access and service delivery. This is largely due to inefficiencies, lack of coordination, and weak budget procedures. To achieve the MDGs and ensure sustainable service delivery, the sector needs to improve investment planning, strengthen coordination mechanisms, enhance performance-based funding, and promote more transparent and efficient budget execution.