|1. Project Data:
ICR Review Date Posted:
|Promaputo, Maputo Municipal Development Program
Project Costs(US $M)
Loan/Credit (US $M)
Cofinancing (US $M)
Board Approval Date
|Sub-national government administration (60%), Roads and highways (20%), Solid waste management (12%), Other social services (4%), General industry and trade sector (4%)|
|Municipal governance and institution building (23% - P)
Other urban development (22% - P)
Municipal finance (22% - P)
Urban services and housing for the poor (22% - P)
Participation and civic engagement (11% - S)|
||ICR Review Coordinator:
||John R. Heath
|2. Project Objectives and Components:|
a. Objectives:The statement of objectives in the Credit Agreement and the Project Appraisal Document is identical: "to strengthen the Maputo City Council's institutional and financial capacity to support achievement of long term service delivery goals, and to implement selected priority investments".
The project's outcome targets were:
(1) 120% nominal increase in own-source revenues;
(2) Increase the amount of solid waste deposited in the waste dump from 253 to 600 ton/day;
(3) An Integrated Financial Management System in use and fully functional as designed.
This was phase 1 of an eight-year APL program, which was intended to create the foundation for large-scale investments in infrastructure and services to be financed under phase 2, already approved.
The long term objectives of the program are to strengthen the capacity of the City Council (CMM) to develop, manage and maintain quality service delivery to its citizens.
b. Were the project objectives/key associated outcome targets revised during implementation?
Component 1: Institutional reform and municipal governance (appraisal cost US$8million; actual cost US$10.8million). This component comprised two sub-components: (i) institutional reform and strengthening, and (ii) improved municipal governance. The first sub-component was to finance (a) preparation and implementation of a restructuring plan for the City Council of Maputo, (b) strengthening of human resources management, (c) simplification of administrative procedures, (d) creation of capacity of district-level authorities to plan and manage small-scale infrastructure and urban services, and (e) basic operating costs for the CCM. The second sub-component was to support (a) citizen awareness campaigns, (b) training of municipal assembly members on their roles and responsibilities, (c) workshops and other activities to facilitate communication among government agencies involved in delivering services in Maputo, and (d) development of public private partnerships.
Component 2: Municipal finance (appraisal cost US$4.7 million; actual cost US$5.3million). This component comprised two sub-components: (i) improved revenue collection, and (ii) improved expenditure management. The first sub-component financed (a) a contract with a private firm to distribute bills for property taxes and measures to involve district administrations in revenue collection, (b) design and implementation of a single consolidated database and new systems for generating and distributing bills and for collecting taxes and fees, (c) improvements in the capacity of municipal service providers to collect fees, and (d) reform of tax legislation, and (e) training and capacity building to enhance the municipal revenue system. The second sub-component financed training and capacity building in (a) budget preparation, (b) procurement and asset management, and (c) budget execution and control, including audits.
Component 3: Planning and service delivery improvements (appraisal cost US$26.3 million; actual cost US$25million). This component comprised three sub-components: (i) planning and management of urban space, (ii) infrastructure and service delivery improvements, and (iii) solid waste management services. The first sub-component supported (a) preparation of spatial and sector plans and implementation of a municipal information management system, (b) creation of capacity in the CCM for strategic, spatial, and sector planning, and (c) improvements in the systems for land management. The second sub-component financed (a) rehabilitation of existing roads and drainage, (b) construction of a new cemetery, (c) installation of street lights and traffic lights, and (d) construction of markets. The third sub-component supported improvements in solid waste management.
d. Comments on Project Cost, Financing, Borrower Contribution, and Dates
Project Cost: Project appraisal cost was US$43.0 million, of which US41.1 million were disbursed at closure.
Financing: The Bank financing consisted of a credit in the amount of US$30.0 million. At closure, the amount was disbursed at US$29.4 million. Public-Private Infrastructure Advisory Facility (PPIAF) grant contributed US$0.08 million against estimated US$0.29 million.
Borrower contribution: The Borrower contributed US$13.0 million, of which US$11.7 million were disbursed.
Dates: The project closing date was extended for one year from August 31, 2010 to August 31, 2011. The extension was granted to complete the on-going activities, including the development and implementation of the integrated financial management information system and financing of contracts for solid waste management services until the contract end dates. The project was conceived as the first phase of an eight- year program. While the closing date for phase 1 was extended by one year, phase 2 was approved on September 30, 2010 and became effective on January 21, 2011, less than six months later than originally planned.
|3. Relevance of Objectives & Design:|
a. Relevance of Objectives:High.
The project development objective was highly relevant to the Bank’s FY08-11 Country Partnership Strategy for Mozambique (current at project closure), which was based on the three pillars: (a) accountability and public voice, (b) equitable access to key services, and (c) broad-based economic growth. These pillars were aligned with the three pillars of the government’s second poverty reduction strategy, Programa da Acção da Redução da Pobreza Absoluta II. The Maputo Municipal Development Program phase 1 (MMDP I) contributed to each of these pillars. The PDO was also in line with the main priorities of the FY04-07 Country Assistance Strategy for Mozambique at appraisal, which aimed at improving the investment climate, expanding service delivery, and building public sector capacity and accountability. The project objective was consistent with a 10-year municipal development program of the City Council of Maputo (CCM) called ProMaputo; its goal was to raise the quality of life of municipal residents and create an environment conducive for investment and job creation.
b. Relevance of Design:Substantial.
The statement of development objectives was clear. The project results framework provided a logical link between the activities financed by the project and the outputs and outcomes related to the attainment of the development objectives.
Increasing the institutional capacity of the Maputo City Council was supported by Component 1 and 3, which included measures for restructuring, human resources management, simplification of administrative procedures, planning and management of urban space, strengthening of district authorities, and various initiatives to increase citizen participation, increase inter-agency coordination and develop public-private partnerships. This aspect of the results chain was predicated on the active involvement of City and Municipal Associations in the drafting of laws and regulations bearing on municipal autonomy, and giving civil society the means to assess and to contest the plans developed (e.g., through Citizens' Report Cards). It also assumed that the Municipal Assembly would swiftly approve the Restructuring Plan, without which the other parts of the program could not be delivered (PAD, p.19). Increasing the financial capacity of the City Council of Maputo was supported by Component 2, which included design and implementation of a single consolidated database and new systems for generating and distributing bills and for collecting taxes and fees, reform of tax legislation, and measures to involve district administrations in revenue collection.
The project was envisaged to be implemented within the structure of the municipality itself and not in a project unit, since this limits internalization of reforms by the whole municipality and undermines ownership and sustainability (PAD, page 14).
|4. Achievement of Objectives (Efficacy) :|
A. Strengthened institutional capacity. Substantial.
- A restructuring plan for all organizational units was defined and implemented (modeling processes, job description manual, staff table, competencies profile assessment, and redeployment plan). All 29 organizational units of the City Council of Maputo were restructured, including the departments of finance, human resources management, and procurement.
- A strategic and operational planning methodology was defined and implemented.
- A human resources management plan (recruitment of new qualified technicians and integrated in organizational units) was developed and implementation started.
- An integrated human resources management system was defined (strategy, global, and specific policies were defined and a manual of procedures was prepared).
- A study on simplification of processes was completed, and implementation of its recommendations commenced.
- Annual training courses were offered in leadership, project management, and various other areas of municipal relevance.
- A strategic plan for information systems was defined and implementation started.
- District-level authorities received capacity building support to plan and manage small-scale infrastructure and urban services.
- An anti-corruption strategy was prepared and many of its recommendations implemented.
- A de-concentration plan for municipal districts was defined and implemented.
- Three citizen report card surveys were undertaken to solicit feedback from the public on the quality of services and their results were widely disseminated through newspapers, television, radio, public forums, the internet, and other media.
- A public private partnership strategy was prepared. Its recommendations provided for the installation for the first time of a public private partnership unit in the municipality, and for the legal framework and model for public private partnership that has already produced 25 such partnerships.
- Urbanization plans for Zimpeto, Magoanine (A, B, and C), Laulane, Ferroviário, 3 de Fevereiro, Mahotas, Costa do Sol, and Albazine were completed. Implementation commenced, and will continue under MMDP II. The urbanization plans will form the basis for the issuing of land use rights to users.
- The rehabilitation and extension of Avenues Sebastião Marcos Mabote (5.6 kilometers) and Nelson Mandela (5.4 kilometers) were completed. These connected the central business district of Maputo to expansion areas on the outskirts of the city, which are home to poor people resettled from the urban core and to new migrants.
- Roads rehabilitated under the project, non-rural, reached 85 kilometers by end 2009, significantly exceeding the original target of 20 kilometers. The target was surpassed because people living in the periphery of Maputo identified improved access roads as a priority for them. The City Council of Maputo responded by focusing attention on improving access roads in the later years of the project.
- Studies were completed to improve the organizational set-up and financial sustainability of future solid waste services.
- Primary waste collection was initiated in 25 suburban neighborhoods, using micro-enterprises to provide collection services. This was the first regular municipal service provided in these settlements. At least 590 jobs have been created for local residents.
- Average time to process a new request for a construction license reduced from 8 months to 28 days exceeding the target of 3 months.
- As planned, decentralization of agreed functions occurred in 7 districts.
- Solid waste services in the central city and the suburbs improved visibly. The quantity of urban solid waste collected and deposited in the dump rose from 253 tons per day in 2006 to 650 tons per day by August 2011 exceeding the target value of 600. For the first time services were provided outside the city core where about 90 percent of residents live and are poor. The number of people served with regular solid waste collection services rose from about 100,000 in 2006 to 1 million in 2011.
- Collection of the waste fee rose from US$900,000 in 2006 to US$3.3 million in 2011. The service was fully covered through the waste fee, collected through the electricity billing system.
The project supported significant reorganization in the way solid waste services are delivered. It encouraged the City Council of Maputo to focus on the core functions of policy development and planning of solid waste services, while contracting out to private firms and micro-enterprises the job of collecting and disposing of garbage. The firms and micro-enterprises were paid on the basis of performance to have a strong incentive to deliver the services. Residents have noticed that services have improved and are now paying increasing amounts to sustain them. The project facilitated the creation of some 25 public private partnerships. Private enterprises are now managing and maintaining municipal parks and gardens, parking lots, and public sanitary facilities under public-private partnership arrangements. The creation of the solid waste micro-enterprises has also generated 590 jobs for local residents, many of whom are women.
The project included a number of innovative approaches to strengthen the CCM's institutional capacity: (i) introduction of annual citizen report cards to solicit feedback from the public on the quality of services, organizing public forums at the neighborhood and district levels, and public awareness campaigns, thus enhancing accountability; (ii) recruiting recent university graduates under Bank-finance to work at the City Council of Maputo for a trial period, with successful candidates made permanent staff of the council; and (iii) offering bonuses to high- performing staff. The majority of staff trained and mentored under the project in financial management, procurement, contract management, urban and strategic planning, human resources management, communications, and information management remain in the City Council of Maputo, including the young university graduates. The policy of rewarding high performing staff with bonuses that can effectively double their salaries has proven to be a strong incentive for the best qualified staff to remain in the CCM.
B. Strengthened financial capacity. Substantial.
- A property tax regulation (decree 61/2010) was approved by the Council of Ministers to allow for the reassessment of properties, with reference to market values. This regulation is of national scope bringing benefits to all the 43 municipalities in the country.
- Number of additional taxpayers registered as property tax payers increased from 13,000 to 28,000 increasing the target of 18,000.
- Design of an integrated financial management system (IFMIS) and implementation of some modules commenced. However, the integrated financial management system was not implemented as planned. Implementing the IFMIS proved more difficult than expected due to a very comprehensive public financial management law in Mozambique that requires government entities to adhere to standards set by the Ministry of Finance before they can introduce the IFMIS. The Bank approved phase 2 of the program under which the work on the IFMIS will continue. The Ministry of Finance is taking the lead in design and implementing the system for the City Council of Maputo with Bank assistance.
- Regulations for fees on economic activity were prepared and approved by the Municipal Assembly, allowing for more efficient fee calculation and collection.
- Measures to increase revenues from markets—including launching of a market vendor cadastre and approval of new regulations by the municipal assembly—were put into place.
- Extensive training for managers and technicians in municipal revenue management took place. The training included lectures on national legislation, as well as practical classes in which the revenue department team elaborated and discussed proposals of regulations for municipal taxes and fees.
- A planning and budgeting methodology was revised and approved by the CCM.
- A study proposing approaches to revaluing properties in Maputo was completed.
- An evaluation of municipal assets was conducted.
- A medium-term expenditure framework was developed, which is regularly updated to reflect the fiscal position of the municipality.
Overall the project is likely to contribute to the program goal.
- Maputo City Council’s own revenue rose from US$3.5 million in 2006 to US$9.8 million (annualized) by March 2010. This was a gain of 180 percent over baseline, exceeding the original target value of 120 percent over baseline. Revenues rose due primarily to increases in solid waste fees and improved collection of property and vehicle taxes.
- The own revenues/ current expenditures ratio reached 1.13 from 0.8 exceeding the target of at least 1.
- The proportion of the City Council of Maputo’s capital budget spent (including ProMaputo) rose from 60 percent in 2010 to 90 percent in 2010. Excluding ProMaputo, 95 percent of the CCM’s capital budget was spent in 2010.
- At closure, the City Council of Maputo had in place a complete database of employees, providers, assets, and payroll functionality. The Bank approved phase 2 of the program on September 30, 2012, under which the work on the IFMIS will continue. The City Council of Maputo is preparing a paper laying out the alternatives to the integrated financial management system for its financial management. In consultation with the Bank team and with support of the project, it will design and implement the most appropriate system for its needs and capacity. Specifically, the City Council of Maputo has asked the Ministry of Finance to lead the design work to ensure that the system conforms to the national standards. An institute under the auspices of the Ministry of Finance, the Center for Development of Public Finance Information Systems ( Centro de Desenvolvimento de Sistemas de Informação de Finanças), is overseeing the design and implementation of the the integrated financial management system at the City Council of Maputo.
The ERR is available for the road in Maputo: Avenida Sebastião Marcos Mabote. The economic rate of return (ERR) for the road section is estimated to be 103% as compared with 100% at appraisal due to a larger than estimated traffic volume resulting in higher savings in vehicle operating costs. The main benefits of the road rehabilitation and associated drainage were due to reductions in vehicle operating costs as a result of the improvements in the quality of the road. The original economic analysis also referred to a number of other economic benefits, such as savings in travel time, increases in values of properties that became more accessible, and reduced costs of repairing roads, structures, and property arising from improved drainage.
The project also supported three roads projects in addition to the rehabilitation of Avenida Sebastião Marcos Mabote. The unit costs of rehabilitating and re-graveling roads were well below the average for the African countries, according to a background paper prepared for the World Bank’s 2008 Africa Infrastructure Country Diagnostic.
The internal rate of return for the investments in solid waste management was estimated to be 20% at appraisal. Data are not available to permit an update of the estimates from the original economic analysis. As stated by the ICR, a comparison of the costs of delivering solid waste services in Maputo with those in other medium-size cities in developing indicates that costs in Maputo are well within the norms.
The project experienced a delay of one year. There were no cost overruns.
Efficiency is assessed as substantial.
a. If available, enter the Economic Rate of Return (ERR)/Financial Rate of Return at appraisal and the re-estimated value at evaluation:
* Refers to percent of total project cost for which ERR/FRR was calculated