J.18 – Programmatic Initial Environmental Evaluation.pdf

PROGRAMMATIC INITIAL ENVIRONMENTAL EXAMINATION

PROJECT DATA

Project/Activity Name: Mozambique Water, Sanitation and Hygiene (M-WASH)

Project

Geographic Location: Mozambique

Amendment: No

Implementation Start/End Date 5/1/2019 to 4/30/2024

If Amended, specify New End Date:

Solicitation/Contract/Award Number :1 AID-OAA-I-14-00059; AID-656-TO-16-00005;

72065618-IO-00001

Implementing Partner(s): TBD

Bureau Tracking ID: Mozambique WASH PIEE 2019-2024

● https://ecd.usaid.gov/document.php?doc_id=52332

Tracking ID of Related RCE/IEE (if any): Moz. Integrated Health Services IEE 2014-2023

● https://ecd.usaid.gov/repository/pdf/50154.pdf

Moz. Agriculture, Environment and Business (AEB) Portfolio

2016-2021

● https://ecd.usaid.gov/repository/pdf/49091.pdf

WASH Finance global mechanism

● https://ecd.usaid.gov/browse.php

Tracking ID of Other, Related Analyses:

UNICEF (PIO) internal environmental procedures

ADMINISTRATIVE DATA

Implementing Operating Unit(s): USAID/Mozambique

Other Affected Operating Unit(s):

Lead BEO Bureau: Africa Bureau: Brian Hirsch

Support Bureau(s): Global Health Bureau: Dennis Durbin, BEO

E3 Bureau: Teresa Bernhard, BEO

Funding Account(s) (if available): TBD

Original Funding Amount: $55 million

If Amended, specify funding amount:

If Amended, specify new funding total:

Prepared by: Marcia Matenja, Program Development Specialist, USAID/Mozambique

1 Award numbers for approved activities.

MOZAMBIQUE WASH PROJECT PIEE 2019-2024

https://ecd.usaid.gov/document.php?doc_id=52332 https://ecd.usaid.gov/repository/pdf/50154.pd https://ecd.usaid.gov/repository/pdf/49091.pdf https://ecd.usaid.gov/browse.php

Nathan Sage, Environment Team Leader, USAID/Mozambique

Date Prepared: 4/1/2019. Subm. to BEO 8/22/2019. Rev. 9/27/2019

ENVIRONMENTAL COMPLIANCE REVIEW DATA

Analysis Type: [X] IEE [ ] Deferred (per

22CFR216.3(a)(7)(iv))

Environmental Determination(s): [X] Categorical Exclusion(s)

[X] Negative Determination

[ ] Positive

Determination

IEE Expiration Date (if different from implementation end date):

9/30/2024

Additional Analyses/Reporting Required: SIEE(s) for site-specific and expanded water and sanitation services WASH activities; WQAPs by IPs, ERRs linked to EMMP

Climate Risks Identified (#): Low ______ Moderate _X____ High ______

Climate Risks Addressed (#): Low ______ Moderate _X_____ High ______

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

PURPOSE AND SCOPE

The purpose of this document, in accordance with Title 22, Code of Federal Regulations, Part 216 (22 CFR 216), is to provide a preliminary review of the reasonably foreseeable effects on the environment, as well as recommended Threshold Decisions, for the activities under the Mozambique Water, Sanitation and Hygiene (M-WASH) Project Appraisal Document (PAD). This document provides a brief statement of the factual basis for Threshold Decisions as to whether an Environmental Assessment or an Environmental Impact Statement is required for the activities managed under the scope of this document. Upon final approval of this IEE, these recommended determinations are affirmed as 22 CFR 216 Threshold Decisions and conditions become mandatory elements of project/program implementation.

This IEE addresses the entire portfolio of activities anticipated under the M-WASH PAD under the USAID/Mozambique Development Objective 4 (DO4) “Health status of target populations improved and Development Objective 2 (DO2) “Resilient, broad-based economic growth accelerated” of the USAID/Mozambique Country Development Cooperation Strategy (CDCS) 2014-2020. The M-WASH PAD, which represents the first USAID/Mozambique project to focus solely on water, sanitation and hygiene sector, will be managed by the Office of Agriculture, Environment and Business (AEB). Several activities with WASH components were carried out under the Mozambique Integrated Health Services IEE 2014-2023 (https://ecd.usaid.gov/repository/pdf/50154.pdf).

Supplemental IEEs (SIEEs), or Environmental Review Forms/Environmental Review Reports (ERF/ERR) will be developed with a timeline for completing the Reg 216 requirements for the program as developed

MOZAMBIQUE WASH PROJECT PIEE 2019-2024

https://ecd.usaid.gov/repository/pdf/50154.pd under the M-WASH PAD. The Reg 216 process thus completed at the activity level (or just before the award). A Deferral may be needed because insufficient detail and environmental information is available.

ENVIRONMENTAL DETERMINATIONS

The activities under review are recommended for:

● Categorical Exclusion (pursuant to 22 CFR 216.2 (c)(2)(i) and 216 (c)(2)(iii) – Technical assistance, training, workshops and meetings; research, analyses and studies; and projects or programs intended to develop the capability of countries in planning; document and information transfers; and

● Negative Determination with Conditions – Water supply, operations and maintenance, and improvements to achieve both basic and safely managed drinking water; financial transactions that lead to water and wastewater treatment infrastructure development;

on-site sanitation and fecal sludge management improvements.

Upon approval of this document, the determinations become affirmed, per Agency regulations

(22CFR216). The following table summarizes the environmental determinations applicable to the specific activities:

TABLE: SUMMARY OF ENVIRONMENTAL DETERMINATIONS

Activities Categorical

Exclusion

Negative

Determination with Conditions

Positive

Determination

Deferral2

Component 1: WASH sector governance strengthened

X

Component 2: Availability of water and sanitation services expanded

X X an ERF/ERR (for subgrants or small activities) or SIEE (for major new programs) must be submitted for approval by

USAID.

Component 3: Adoption of key WASH behaviors accelerated

X

BEO SPECIFIED CONDITIONS OF APPROVAL

2 Deferrals must be cleared through an Amendment to this IEE prior to implementation of any deferred activities. USAID/IPs may utilize the Environmental Screening Tool to assess impacts of deferred activities.

All new Initial Environmental Examinations (IEEs) for drinking water provisioning activities REQUIRE

Implementing Partners (IPs) to develop, implement, and report on a Water Quality Assurance Plan

(WQAP). The WQAP must specify how the IP will assure safe drinking water for the project and meet applicable partner-country water quality requirements, given project implementation conditions. The

WQAP template, Guidance Note and example documents can be found at https://www.usaid.gov/environmental-procedures/environmental-compliance-esdm-program-cycle/spec ial-compliance-topics/water.

Due to the lack of available detailed information regarding planned actions under Component 2, supplemental IEEs are required for all activities falling entirely or partially under component 2 of this

PAD-level Mozambique Water, Sanitation and Hygiene (M-WASH) Programmatic IEE (PIEE). The Design

Lead or Agreement/Contracting Officer’s Representative (A/COR) will develop, or direct their partners to develop, and USAID must approve, Supplemental IEEs prior to on-the-ground implementation of any actions covered the SIEE. SIEEs may, however, be prepared after the activity is awarded, during the workplan development period. Supplemental IEEs must include information, analysis and conditions required by any of the applicable GH Programmatic or this M-WASH PIEE.

In many cases, appropriate site-level review may be achieved via the EMMP or appropriate subsidiary review instrument, such as the ERF/ERR, not resulting in a Threshold Decision.

However, where the combination of proposed actions and foreseeable site-specific conditions may, potentially, result in impacts of proposed actions being significant and adverse, the PIEE must require site-level review that results in a site-specific Threshold Decision, based on site-specific baseline information and analysis. In such instances, the PIEE may require one of the following:

1. Site-specific IEEs to supplement the PIEE (supplemental IEEs),

2. Site-specific amendments to a PIEE, or

3. Site-specific EA (i.e., a Positive Determination), when applicable.

Alternatively, site-specific IEEs may be used in lieu of a PIEE. The Mission will likely want to confer with the MEO, REA/REO and/or the BEO on how to parse the appropriate balance.

Specific conditions of this M-WASH PIEE are:

1) Because the application of 22 CFR 216 must be appropriately informed by site-specific conditions and appropriately applied to the specific award/activity, the Design Lead or Agreement/Contracting Officer’s

Representative (A/COR) must, upon consultation with the MEO, REA and/or BEO, develop, or direct the

IP to develop, Supplemental IEEs (SIEEs) for all activities falling entirely or partially under component 2 of this Mozambique Water, Sanitation and Hygiene (M-WASH) Programmatic IEE (PIEE). These SIEEs must be approved prior to on-the-ground implementation of any actions they cover covered the SIEE.

SIEEs may, however, be prepared after the activity is awarded, during the workplan development period for the IEE to best incorporate specific information regarding sites and actions; however, budgets and workplans must provide for full implementation of the conditions established by the SIEE. These SIEEs must:

MOZAMBIQUE WASH PROJECT PIEE 2019-2024

http://www.usaidgems.org/wqap.htm https://www.usaid.gov/environmental-procedures/environmental-compliance-esdm-program-cycle/special-compliance-topics/water https://www.usaid.gov/environmental-procedures/environmental-compliance-esdm-program-cycle/special-compliance-topics/water http://www.usaidgems.org/wqap.htm

a) Provide additional specific details regarding the activity and its entailed actions, including location (environmental baseline), and the impacts associated with all actions.

b) Consolidate all required conditions. For actions addressed by the M-WASH IEE, Supplemental

IEEs must, at a minimum, include the conditions for these actions as established by the M-WASH

IEE and confirm that no additional activities are planned for the activity at the time of completion. Additional or more stringent conditions or determinations must be recommended as indicated and documented within the Supplemental IEE.

c) Rectify any deferrals from the M-WASH IEE for the planned award/activity (none herein at time of approval of PIEE).

d) Define and fully comply with 22 CFR 216 requirements for actions that may not have been addressed in the M-WASH IEE because they were defined during the activity design process rather than at the project level. This includes establishing determinations, and as relevant, conditions for these actions.

e) Provide direction for the development of an Environmental Assessment or Scoping

Environmental Assessments for actions identified as a Positive Determination.

f) Specifically direct the actions of the implementing partners in the development of necessary subsidiary environmental compliance documentation, including:

i) the Environmental Mitigation and Monitoring Plan (EMMP) for actions assigned a negative determination with conditions in the Supplemental IEE (both new conditions and those reiterated from the M-WASH IEE)

ii) development and implementation of the ERF/ERR for sub-grants and sub-awards. The

ERR can become the face sheet for the EMMP.

2) The A/COR will review the Supplemental IEEs against annual work plans to ensure all planned actions remain covered by the IEE and if new actions are identified which fall outside the scope of this IEE, an

Amendment will be provided to the BEO for concurrence.

3) If at any time the project is found to be out of compliance with this M-WASH IEE or the associated

Supplemental IEEs, the A/COR, MEO, and/or REO shall immediately notify the BEO.

With respect to Mission buy-ins to Central mechanisms (e.g. WASH-FIN), the Mission will coordinate conditions with pertinent E3, Global Health Bureau and other Bureaus’ IEEs as appropriate.

Climate Risk Management has been assessed (see Section 7.1) and approved by the Mission Climate

Integration Lead (CIL) and Africa Bureau CIL.

IMPLEMENTATION

In accordance with 22CFR216 and Agency policy, the conditions and requirements of this document become mandatory upon approval. This includes the relevant limitations, conditions and requirements in this document as stated in Sections 3, 4, and 5 of the IEE and any BEO Specified Conditions of Approval.

USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATION

PROJECT/ACTIVITY NAME: Mozambique Water, Sanitation and Hygiene (M-WASH)

Bureau Tracking ID: Mozambique WASH Project PIEE https://ecd.usaid.gov/document.php?doc_id=52332

Approval: Cleared 9/4/2019

Martin McLaughlin, Acting Mission Director Date

Clearance: Cleared 9/3/2019

Kristin Ray, Acting Deputy Mission Director Date

Clearance: Cleared 9/9/2019

Kristin Ray, Program Office Chief Date

Clearance: Cleared 5/13/2019

Todd Flower, AEB Office Chief Date

Clearance: Cleared 9/12/2019

Eduardo Langa, Mission Environmental Officer Date

Clearance: Cleared 8/8/2019

Aaron Brownell, Regional Environmental Advisor Date

Clearance: Cleared 5/16/2019

Robert Rene Dupuy, Acting Resident Legal Officer Date

Concurrence: Cleared 9/30/2019

Brian Hirsch, AFR Bureau Environment Officer Date

Distribution List:

USAID/Mozambique PRO Office, AEB A/CORs, MEO USAID/South Africa Regional Environment Officers https://ecd.usaid.gov/document.php?doc_id=52332

ACRONYMS

22CFR216 Title 22, Code of Federal Regulations, Part 216 ADS Automated Directives System AOR Agreement Officer’s Representative BEO Bureau Environmental Officer CRM Climate Risk Management CLTS Community Led Total Sanitation DfID UK Department for International Development EMMP Environmental Mitigation and Monitoring Plan EMMR environmental mitigation and monitoring reports ERF/ERR Environmental Review Form / Environmental Reporting Form FAA Foreign Assistance Act FSM Fecal sludge management GHG Greenhouse gases IEE Initial Environmental Examination INDC Intended Nationally Determined Contribution MEO Mission Environmental Officer MITADER Ministry of Land, Environment and Rural Development NAPA National Adaptation Programs of Action

NEMP National Environmental Management Program PAD Project Appraisal Document PIEE Programmatic IEE PIO Public International Organization PPP Public Private Partnership REA Regional Environmental Advisor UNDP United Nations Development Program UNFCCC United Nations Framework Convention on Climate Change UNICEF United Nations International Children's Emergency Fund USAID United States Agency for International Development WASH Water, sanitation and hygiene WASH-FIN USAID’s WASH Finance Activity WQAP Water Quality Assurance Plan

PROGRAMMATIC INITIAL ENVIRONMENTAL

EXAMINATION

PROJECT/ACTIVITY NAME: Mozambique Water, Sanitation and Hygiene (M-WASH)

Bureau Tracking ID: Mozambique WASH Programmatic IEE

TABLE OF CONTENTS

1 PURPOSE AND SCOPE OF IEE 7

2 PROJECT DESCRIPTION 7

3 BASELINE ENVIRONMENTAL INFORMATION 9

4 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK 19

5 ENVIRONMENTAL DETERMINATIONS 22

5.1 CLIMATE RISK MANAGEMENT 25

6 CONDITIONS AND MITIGATION MEASURES 31

6.1 CONDITIONS 31

6.2 AGENCY CONDITIONS 33

6.3 MITIGATION MEASURES 34

7 LIMITATIONS OF THIS INITIAL ENVIRONMENTAL EXAMINATION 36

8 REVISIONS 36

1 PURPOSE AND SCOPE OF IEE

The purpose of this document, in accordance with Title 22, Code of Federal Regulations, Part 216 (22CFR216), is to provide a preliminary review of the reasonably foreseeable effects on the environment of the USAID intervention described herein and recommend determinations and, as appropriate, conditions, for these activities. Upon approval, these determinations become affirmed, per 22CFR216 and specified conditions become mandatory obligations of implementation. This IEE also documents the results of the project/activity level Climate Risk Management process in accordance with USAID policy (specifically, ADS 201mal).

This IEE is a critical element of USAID’s mandatory environmental review and compliance process meant to achieve environmentally sound activity design and implementation. Potential environmental impacts should be addressed through formal environmental mitigation and monitoring plans (EMMPs) and/or Environmental Assessments (EAs), if needed.

2 PROJECT DESCRIPTION

The purpose of the M-WASH Project is to increase the use and sustainable management of water and sanitation services, which will contribute to the overall goal of improving the well-being of target communities, especially women and girls.

To achieve this purpose, the Project will focus on three components (also referred to as Intermediate Results or IRs). The first component will strengthen WASH sector governance through participatory dialogue with GRM counterparts coupled with a focus on capacity building to strengthen local systems.

The second component will expand availability water and sanitation services by catalyzing domestic private sector resources to complement public sector investments. The final component will accelerate adoption of key WASH behaviors that not only lead to improved health outcomes, but also address sustainability by ensuring that investments in physical infrastructure are used and maintained.

GEOGRAPHIC FOCUS

A 2018 World Bank analysis of WASH and poverty highlights that the poor in Mozambique are mainly concentrated in rural areas—in the provinces of Nampula and Zambézia. Those two provinces represent 38 percent of the country’s total population, with 48 percent of their residents falling below the poverty line. In Zambézia in particular, the poverty gap has been widening over the last 20 years . Contrary to the3 urban areas, rural areas have seen their share of the poorest residents grow from 48 percent in 1996 to 55 percent in 2015. The provinces of Niassa, Cabo Delgado, and Nampula have seen even-greater increases in their poor populations, these being estimated at between 67 and 69 percent. These statistics drive a strategic geographic focus toward northern Mozambique. Figure 6 illustrates the geographic concentration of poverty and open defecation rates.

Figure. Poverty Headcount and Open Defecation Rates

3 World Bank. 2017. Findings of the Mozambique Water Supply, Sanitation, and Hygiene Poverty Diagnostic. WASH Poverty Diagnostic. World Bank, Washington, DC.

The M-WASH project will take a multi-faceted approach and use the adaptive management guiding principle to determine the geographic focus over the life of the Project. M-WASH will begin by focusing where the need is highest in Nampula, Zambezia, and Cabo Delgado, which suffer from the highest poverty and malnutrition rates in the country. As noted above, Nampula and Cabo Delgado also have the highest population density. If USAID finds that these areas have reached a saturation point with other donors focusing in the same space, then USAID will adjust and find the next most vulnerable provinces to work in based on the poverty, malnutrition, and open defecation rates. USAID will intentionally layer WASH activities with complementary nutrition and governance focused programming.

USAID will also work where the private sector exists. Currently, the PWPs are primarily based in southern Mozambique. USAID will continue to work with the PWPs and try to expand their investments to the north of the country. USAID will also need to follow the investment opportunities for small town water systems where the political leadership of the small towns is willing to work with the private sector to establish new business models.

In addition, USAID will use existing systems to determine where to work when investing in other platforms such as the PRONASAR Joint Fund. The PRONASAR Joint Fund has an existing system to determine where funds are directed based on a number of factors such as population density, existing funding, etc.

Finally, when crisis strikes USAID will be responsive. Mozambique is extremely vulnerable to climate change that is increasing the intensity of flood and storm events and increasing the frequency of droughts. These events cannot be predicted; however USAID will leave itself the flexibility to move into new areas based on the needs of the people following these types of events. For example, in 2019 Cyclone Idai caused massive destruction in the city of Beira and surrounding areas. The mission will use its resources to complement the recovery efforts following these types of shocks as determined appropriate by the Mission Director.

3 BASELINE ENVIRONMENTAL INFORMATION

LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT (ENVIRONMENT, PHYSICAL, CLIMATE, SOCIAL)

Over the past decade, Mozambique’s economy has expanded at a rapid rate, as evidenced by its gross domestic product (GDP) growing between 5 and 7 percent per year. However, economic growth has not been distributed evenly; almost half of the country’s population still lives in poverty. While poverty exists throughout the country, it is most concentrated in two provinces, Nampula and Zambezia, where 48 percent of the 11.2 million poor Mozambicans live.4

In 2015, 47 percent of the Mozambican population had access to basic water services, 24 percent had access to basic sanitation facilities, and only 12 percent had soap and water available on their residences. In rural areas, these rates drop to 32 percent for access to basic water services, 10 percent for improved sanitation facilities, and 8 percent of households had soap and water on their premises. ,5 6

The gap in access to basic WASH infrastructure is most acute in the north and center of Mozambique, where poverty and population density is higher than in the south. The national rate (2015) of open defecation in rural areas is 47 percent; however in Zambezia, it is 72 percent .7

Mozambique’s steady economic growth has also been coupled with population growth and rapid urbanization. From 1990 to 2015, the population more than doubled, from 13.6 million to 27.1 million, while the number of people living in urban areas tripled. Urban development has not been able to keep up with the growing population, putting pressure on cities and small towns to provide water and sanitation services. For example, the capital of Cabo Delgado Province, Pemba, is capable of providing water for only six hours per day; and the capital of Niassa Province, Lichinga, is capable of providing water for eight hours per day. In Maputo, the capital city, water provision in some areas has been cut to less than 5 hours per day.

With support from development partners and non-governmental organizations (NGOs), the Government of the Republic of Mozambique (GRM) has been making substantial investments, particularly in expanding both production and distribution of water supply in both rural and urban areas. In the late 1990s, the GRM embarked on a sector reform process in urban areas, with the implementation of the Delegated Management Framework, which enabled the transfer of operational responsibilities for water supply to professional service providers, and created new sector institutions, including the National Directorate of Water Supply and Sanitation/Direcção Nacional do Abastecimento de Água e Saneamento (DNAAS). In 2010, the National Rural Water Supply and Sanitation Program (PRONASAR) was developed as the main implementation modality for the GRM and has since been jointly implemented by various partners (government, NGOs, international agencies, etc.).

Mozambique’s newly revised Constitution provides opportunities for advancing decentralization of planning, investment and management of government services, including water and sanitation services, 7 WHO/UNICEF JMP 2015. https://washdata.org/data.

6 Basic water service is defined as drinking water from an improved source provided that the collection time is not more than 30 minutes for a roundtrip, including queuing. A basic sanitation service is defined as the use of improved facilities that are not shared with other households.

5 WHO/UNICEF JMP 2015. https://washdata.org/data.

4 World Bank. 2018. Findings of the Mozambique Water Supply, Sanitation, and Hygiene Poverty Diagnostic. WASH Poverty Diagnostic. World Bank, Washington, DC.

MOZAMBIQUE WASH PROJECT PIEE 2019-2024

https://washdata.org/data https://washdata.org/data to provinces and districts. The GRM and development partners have committed to support the decentralization process, which in the water and sanitation sector is led by DNAAS.

The GRM Five-Year Plan (2015-2019), which lacks a detailed investment plan, includes the following WASH and water resources management goals:

● Increase access to basic water services to 75 percent coverage in rural areas and 90 percent in urban areas;

● Increase access to basic sanitation services to 50 percent coverage in rural areas and 80 percent in urban areas;

● Build and expand the capacity of irrigation and water storage infrastructure; and

● Ensure the integrated management of water resources and international river basins.

Beyond increasing access to WASH, the GRM faces significant challenges in meeting its sustainable development goals (SDGs). These challenges include:

● Weak governance and institutional capacities. The Ministry of Public Works, Housing and Water Resources (MOPHRH), through DNAAS, has overall responsibility for water management.

Policies and institutional arrangements exist for the water sector, but implementation remains weak. The evolving and still uncertain legal and regulatory framework weakens transparency and predictability of market signals from government to private investors—individuals and companies—in the water sector, which increases investment and business risks. In the8 sanitation sector, there is a lack of clear policies and strategies and insufficient political will to strengthen weak service delivery institutions.

● Sector financing gaps, particularly for rural sanitation. The GRM estimates that approximately $4.16 billion in WASH sector financing (75 percent water and 25 percent sanitation is needed to achieve universal access by 2030 . The GRM plans to invest $80 million in water and water9 resource management in 2019 to meet the targets set in the GRM Five-Year Plan 2015-2019. At these rates, the annual investment needs for the sector will reach less than a quarter of the goal.

About 75 percent of these funds are allocated to urban areas while 25 percent to rural areas. In the last seven years, on average about 80 percent of the funding for the WASH sector came from external resources.

● Low sustainability of WASH service delivery. Approximately 30 percent of water points are non-functional at any time. Communities are left to maintain water points after they are constructed because District Water Offices do not conduct routine monitoring and maintenance.

The challenge to maintain water points increases in remote areas with low population density.

● Poor nutritional status compounded by weak health infrastructure. Currently, there are only 1,300 health facilities in the country, many of which are in a poor state of repair and lack essential services such as water, functioning sanitation and waste disposal systems, and electricity. Malnutrition and stunting rates are increased due to deficiencies in basic water and sanitation services. Chronic malnutrition (stunting or low height-for-age) affects more than two million children under the age of five (43 percent) .10

10 USAID 2018. Mozambique Nutrition Profile. March 2018.

https://www.usaid.gov/sites/default/files/documents/1864/Mozambique-Nutrition-Profile-Mar2018-508.pdf.

9 Club of Mozambique. “Four billion dollars needed for water and sanitation – Government.” 10 Feb 2017.

https://clubofmozambique.com/news/four-billion-dollars-needed-water-sanitation-government/

8 USAID. 2018. Rapid Water and Sanitation Market Assessment. USAID/Mozambique SPEED+ Activity.

https://pdf.usaid.gov/pdf_docs/PA00TMHV.pdf.

MOZAMBIQUE WASH PROJECT PIEE 2019-2024

https://clubofmozambique.com/news/four-billion-dollars-needed-water-sanitation-government/ https://pdf.usaid.gov/pdf_docs/PA00TMHV.pdf

APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER INTERNATIONAL STANDARDS (E.G.

WHO), ENVIRONMENTAL AND SOCIAL LAWS, POLICIES, AND REGULATIONS

The Constitution of the Republic of Mozambique approved by the Parliament in 2004 states that all citizens have the right of living in a balanced environment and the obligation of protecting it from degradation. The Constitution also states that natural resources located underground, in the soil, sea, and freshwater belong to the State, and the Constitution calls for the need to establish areas for the protection of nature. Accordingly, the State should adopt policies to protect the environment and encourage sustainable use of natural resources. It is in this regard that Mozambique has approved policies, laws and regulations to protect the environment for future generations.

Based on the National Environmental Management Plan, the Environmental Law (July 30, 1997) defines the legal basis for the proper use and management of the environment and its components in order to establish a system of sustainable development in Mozambique. Article 13 of the Environment Law provides a legal basis for the creation of protected areas, prohibiting pollution and mandating environmental quality standards. Article 30 of the Environment Law recognizes the need to guarantee the participation of local communities and to utilize indigenous and local knowledge in environmental management.

The Environmental Framework Act (Act 20 of 1997) provides for the participation of local communities, among others, in the development of policy and laws for the management of natural resources, management of protected areas, and policing environmental norms. It also establishes conditions for environmental impact assessment in order to avoid environmental disasters. Its 34 articles define natural elements, as well as authorized activities relevant to the exploitation of the environment and also establish national programs for environmental management under the responsibility of competent authorities. Some of the Decrees related to the environment in Mozambique include:

Decree No. 8/03 on the Regulation of Bio-Medical Waste Management, which approves the Regulation on Bio-Medical Waste Management. This Regulation applies to any waste produced by bio-medical activities and aims at granting health and safety of workers, minimizing, at the same time, the environmental impact. To this end, it provides waste management specific plans and provides a detailed classification of waste typologies. Special attention is devoted to hazardous and radioactive substances;

Decree No. 6/2009 on approving the Regulation on Pesticides Management approves the Regulation on

Pesticides Management and aims at guaranteeing the human health and the environmental quality standards, according to environmental legal proceedings approved by Law No. 20/97, defining institutional competencies and establishing on registration, authorization, managing, composition, classification, and inspections to be carried out on pesticides;

Environmental Audit and Environmental Inspection are regulated by Decrees No. 32/2003 of August

20, 2003 and No. 11/2006 of July 15, 2006 respectively. The Regulation on Environmental Audit stipulates that public or private activities are subject to public environmental audits conducted by

MITADER or by private entities. As per this regulation, audited entities are required to provide to the auditors a full access to the sites to be audited as well as information that may be required as part of the process. The regulation on Environmental Inspections regulates the mechanism for inspection of public and private activities, which directly or indirectly have the potential to cause negative environmental and social effects. This Law aims at ensuring that development activities are in compliance with procedures established for environmental protection.

The Ministry Diploma No. 130/2006 of July 19 makes provision for the public participation process related top Environmental Impact Assessment, defining the basic principles for Public Participation methodologies and procedures that should be used. Emphasis is placed on the need to consult with affected or interested stakeholders who may be directly or indirectly affected by a development project.

Regulations on Environmental Quality Standards for Effluent Emission—Decree no 18/2004 of 2nd of

June. This regulation aims at establishing environmental quality standards for effluent emissions with a view to ensure effective control and supervision on the environmental quality and the natural resources.

Article 16 of this Decree specifies the requirements for discharge of pollutants or liquid effluent into the environment. Paragraph 2 of this article indicates that the location of any effluent emission or discharge source shall be determined during the undertaking of environmental impact assessment process, with a view to ensure that such discharge does not result in change in the water quality of the receiving environment, which would limit the use of such water for other means. Paragraph 3 emphasizes that discharge of domestic effluent to an aquatic environment shall take into consideration the standards set on this Decree.

Regulations for Environmental Impact Assessment—passed in 1998 and revised through Decree no.

45/2004, dated September 29, 2004—were recently revised again through Decree no. 54/2015, dated December 15, 2015. These Regulations specify that all programs and projects that may directly or indirectly affect sensitive areas shall be subject to Environmental Impact Assessment (EIA).

Environmentally sensitive areas include conservation or protected zones or areas, zones where habitats and ecosystems are in danger of extinction, and natural forests.

The Land Policy (Resolution No. 10/95)- The national land Policy approved by Council of Ministers, establishes that the State should provide land for every family to have or build their own houses and that the State is responsible for land-use planning, although plans may be prepared by private sector. The objective of this policy was to entrench the rights of the population over the land and other natural resources while promoting investment and sustainable and equitable use of these resources.

Water Policy (Official Gazette No. 43/Series I, supplement 5 of October 30, 2007) – In August 2007 the Cabinet Council approved the new national Water Policy. This new policy is a review of the water policy of 1995 (of Boletim da Republica, I Serie No. 34 of August 23), which emerged from the Water Law of 1991. The new Water Policy intends to achieve the following objectives: i) Satisfaction of basic needs; ii) Improvement of sanitation in urban and rural areas; iii) Water efficiency for economic development; iv) Reduced vulnerability to flooding and drought; v) Water for environmental conservation; vi) Agreements on water allocations and management coordination for international river basins.

COUNTRY/MINISTRY/MUNICIPALITY ENVIRONMENTAL CAPACITY ANALYSIS (AS APPROPRIATE)

Government - Policy and Regulatory Bodies

The GRM has various government institutions responsible for the policy, regulation, and provision of water and sanitation services in rural, urban, small-town, and peri-urban areas. See USAID Rapid Market Assessment for further details.11

● DNAAS, within MOPHRH, is responsible for policy development, management, strategies and investment mobilization for water supply and sanitation in rural and urban areas. DNAAS leads the implementation the National Program for Water and Sanitation in Rural Areas (PRONASAR).

With USAID support, DNAAS led the development of Decree 51/2015 that legitimized the role of PWPs under five-year licenses.

● Water Regulatory Council/Conselho de Regulação do Abastecimento de Água (CRA): CRA was created as an autonomous entity to reconcile the interests of users and their public and private water supply providers. CRA also works to ensure a balance between the quality of service, the interests of users, and economic sustainability (including adjustment of tariffs). CRA sets the tariffs for both public and privately operating water systems and regulates sanitation treatment and disposal. All water tariffs must be approved by the relevant municipal council. The involvement of municipal councils in tariff approvals potentially introduces political influence onto CRA’s ability to function as an independent regulator and set tariffs that enable water system operators to recoup operating costs and depreciation while protecting customers from exorbitant charges. CRA also has a regulatory enforcement mandate, but lacks the resources to conduct and process water testing kits.

● Regional Waters Administration (ARA) is tasked with regulating the use of surface and ground water resources by authorizing and registering well development and collecting fees for water abstracted by both public and private water service providers. ARA has five regional offices (South, Central, Center-North, Zambezi, and North).

● Municipal/District Governments play an increasingly more important role in rural water and sanitation sector as PRONASAR incorporates more decentralized planning and investment systems and international partners strengthen the capacity of local institutions to implement and monitor these investments. Within the context of privatized water provision as promulgated in Decree 51/2015, a Water and Sanitation Representative under local authorities, municipal councils and district governments are charged with the provision of licenses to all PWPs—although many municipalities collect an annual business fee from PWPs in lieu of managing a formal licensing system.

● Ministry of Health/Ministério da Saúde (MISAU): Hygiene and sanitation activities are included in MISAU’s responsibilities. The ministry also responds to the health effects of emergencies such as floods. At the sub-national level, a Provincial Health Directorate organizes and coordinates health and WASH activities for each province, and leads the various District Services for Health, Women and Social Action.

Government - Water Service Providers

● National Directorate of Water and Resources Management/Direcção Nacional de Gestão Recursos Hídricos (DNGRH), within MOPHRH, is responsible for developing policies and strategies related to the conservation, use, and exploitation of water resources and river basins, including state management for drought and flood planning and mitigation.

11 USAID. 2018. Rapid Water and Sanitation Market Assessment. USAID/Mozambique SPEED+ Activity.

https://pdf.usaid.gov/pdf_docs/PA00TMHV.pdf.

● Water Supply Investment Assets Fund/Fundo de Investimento e Património do Abastecimento de Água (FIPAG) manages public investment and maintenance of the urban water supply networks in 21 cities across Mozambique through 15 regional offices . FIPAG directly manages12

15 city water systems and has delegated the management of another six urban water systems to a private operator. FIPAG also manages one small town system in Ilha de Moçambique.

● Water and Sanitation Infrastructure Administration/Administração de Infra-Estruturas de Água e Saneamento (AIAS): AIAS was established as an autonomous public entity to manage water supply and sanitation systems in 130 small cities and towns outside of FIPAG’s scope. AIAS has constructed water systems in five secondary cities and 126 towns .13

ACTIVITY PLAN

Ongoing Activities. The table below describes current, ongoing activities aligned with the M-WASH Project. Details include activity name, link to project IRs, instrument type, planned period of performance, and total estimated cost.

Activities Name

Link to

Project

IRs

Instrument

Type

Period of Performance and

Total Estimated Cost

1. Strengthening Policy Environment for Economic Development (SPEED+)

1.1; 1.3;

2.2

Contract Task Order

2016-2020; $3M

2. Water for Africa through Leadership and Institutional Support (WALIS)

1.2 Contract

Task Order

2018-2019; $400k

3. WASH Finance (WASH-FIN) 1.1; 1.2;

1.3; 2.1;

2.2; 2.3

Contract Task Order

2018-2021; $4.8M

4. WASH in Health Centers 1.2; 2.1;

2.1; 2.3

PIO Grant 2018-2022; $6M

Planned and Tentative Activities of the M-WASH Project

Planned & Tentative Activities Name

Link to

Project

IRs

Instrument

Type

Period of Performance and

Total Estimated Cost

5. Breakthrough Research on Social Behavioral Change (Planned)

3.1; 3.2; Contract Task Order

2019-2021; $1M

6. Transform Nutrition in Nampula (Planned) 3,1; 3.2;

3.3

Local System 2019-2023; $4M

7. Water, Sanitation, Hygiene & Women's Empowerment (Planned)

2.3; 3.1;

3.2; 3.3

Local System 2019-2023; $18M

8. PRONASAR Joint Fund for Rural Water Supply & Sanitation (Planned)

1.1; 1.2;

2.1; 2.2;

3.3

Delegated

Cooperation

Agreement with DfID

2020-2024; $20M

(equivalent to $5M/year; it is possible to continue support for

PRONASAR through 2030)

13 USAID. 2018. Rapid Water and Sanitation Market Assessment. USAID/Mozambique SPEED+ Activity.

https://pdf.usaid.gov/pdf_docs/PA00TMHV.pdf.

12 USAID. 2018. Rapid Water and Sanitation Market Assessment. USAID/Mozambique SPEED+ Activity.

https://pdf.usaid.gov/pdf_docs/PA00TMHV.pdf.

MOZAMBIQUE WASH PROJECT PIEE 2019-2024

9. Local Governance & Decentralization (Planned) 1.1, 1.2, 1.3

TBD 2020-2024; $3M

10. Small Towns Water Fund (Tentative) 1.1; 1.2;

2.1; 2.2;

2.3; 3.3

TBD 2020-2024; $4.6M

11. Strengthening Private Water Providers (Tentative) 1.2; 1.3;

2.2; 2.3

Contract 2021-2023; $3M

12. Parceiros in Cabo Delgado GDA (Tentative) TBD TBD 2021-2023; $1.5M

Details of Existing and New Activities of the M-WASH Project

Activity Name Total Estimated Cost

Activity Description

The following activities are ongoing and have been approved. WASH components will fall under the M-WASH PAD.

SPEED+ $3 million Demand-driven policy reform activity. WASH component aims to increase private sector investment in the water sector to serve more customers with high quality service by supporting implementation of national system regulating private water providers;

nationwide mapping and creation of national database of these providers; support to CRA to establish a tariff structure. Support to DNAAS and AFORAMO (association of private water providers) to catalyze provision of piped water in peri-urban and small town areas.

WALIS $400,000 Africa Bureau technical support to National Water Sector Information System (SINAS) including demonstration pilot of web-based decision-support platform in Cabo Delgado, Manica, Maputo and Sofala provinces. Data from other provinces supported by other donors will be integrated into SINAS. Program includes data collection training, enterprise development of software, and the provision of tablets, computers and a server.

Water, Sanitation and Hygiene Financing

(WASH-FIN)

$4,782,104 Technical assistance aimed to deliver sustainable and creditworthy business models, increased public funding, and expanded market finance for infrastructure investment.

WASH-FIN in Mozambique will expand financing for viable water and sanitation service providers to enable them to invest in improving their service quality and/or increase client access to safe water and adequate sanitation through: (1) increase understanding of WASH financing options; (2) transaction support services to private water and sanitation providers; and (3) support for alternative financing opportunities (e.g., UNICEF Small Towns Fund with AIAS).

WASH in Health Facilities

$6 million Focus on health facility water and sanitation infrastructure improvements in Nampula, Sofala and Zambezia provinces. Complementary site-level activities in medical waste, laundry, and hygienic kitchens, as well as central-level policy advocacy for increased planning & investment in WASH at all health facilities. Target: Improved institutional WASH in 70 health facilities and 6 pilot schemes linking O&M to local communities.

Transform Nutrition

$4 million Transform Nutrition aims to improve the nutritional status of pregnant and lactating women, adolescent girls, and children less than 2 years of age in Nampula province.

Intermediate Results include: (1) strengthened host government capacity to plan and manage nutrition programming; (2) increased adoption of optimal behaviors to improve the nutritional status of target populations; and (3) increased access to quality services and products for nutrition, sanitation, and hygiene. WASH funds (for IR3) will target improved open-defecation free (ODF) and soap usage rates of 1.83 million people (30 percent of 6.1 million total population of Nampula).

Activities being authorized for design and procurement under the M-WASH Project Appraisal Document

Breakthrough

RESEARCH

Up to $1 million

Global SBC mechanism capable of generating evidence through social-science research and evaluation with focus on gender equality and youth empowerment. The activity would enable crucial cutting-edge research into innovative SBC interventions and identify the and most efficacious entry points for changing gender norms within WASH and Nutrition interventions, which can potentially be implemented and scaled via local partners.

Water, Sanitation, Hygiene & Women's Empowerment

$18 million This activity, which has potential for co-creation/co-design, will focus on social behavior change (SBC) related to water, hygiene, and sanitation, increased engagement of women in WASH decision making, and access to improved sanitation, in the geographic focus area of northern Mozambique (Nampula, Zambezia, Cabo Delgado). SBC activities will create demand for sanitation products and services, utilizing research and findings from Breakthrough RESEARCH. A component will strengthen the sanitation market and engagement of the private sector. Activities will include a sanitation marketing and supply chain assessment, and development of cost-effective, gender-sensitive, affordable sanitation solutions, and implementation of Community Led Total Sanitation (CLTS) approaches beyond the area covered by Transform Nutrition. In addition to the sanitation focus, activities with community-level water and sanitation management groups will increase women’s participation in WASH-related decision making. Innovative models for community water management that addresses payments, rehabilitation and sustainability of systems may also be addressed

PRONASAR Joint Fund for Rural Water Supply & Sanitation

$20 million (2020-2024)

The National Rural Water Supply and Sanitation Program (PRONASAR) represents a joint effort between GRM, development partners, and NGOs in Rural Water Supply and Sanitation at central, provincial, district and local levels. PRONASAR's Annual Implementation Plans comprises investments from State Budget, development partners through the Joint Fund, and partner organizations that fund AASR activities outside the Joint Fund. PRONASAR Joint Fund is being developed jointly by DNAAS, DfID, Austria, Switzerland and UNICEF. On-CUT financial allocations will be managed by DNAAS/DAF, DPOPHRH/DAF, and district financial structures. Off-CUT financial allocations will be managed by an external fund manager. UK/DfID will support the development of Off-CUT financial management mechanisms, provincial/district-level technical assistance (implemented by SNV) to develop results-based indicators, and independent verification of annual provincial progress reports using these indicators. USAID and DfID will enter into a Delegated Cooperation Agreement that will facilitate Off-CUT support to PRONASAR Joint Fund (and associated costs) and technical assistance (SNV or other).

The following activities are illustrative, and will require PAD Amendment Memos for formal authorization prior to proceeding with full activity design.

Local Governance & Decentralization

$3 million WASH funds may be used to support the Mission’s new, cross-cutting Local Governance and Decentralization activity currently in design. Provincial or municipal-level activities would align with Sub-IR1.2: Institutional capacity to plan, budget, implement and monitor improved and Sub-IR1.3: Business climate to attract private sector participation strengthened. As this activity is in the initial design stages, further discussion will be needed on the extent to which the activity will be supported with WASH funding.

Small Towns Water Fund

$4.6 million Under WASH-FIN Activity, technical assistance is provided to analyze a concept note, developed by UNICEF, to establish an investment fund for water supply and sanitation in small towns, based on the existing public-private partnership model used by the GRM to engage with the private sectors. The World Bank has expressed interest in being the fund manager, working in partnership with AIAS. In that scenario, USAID could fund either a bilateral grant to a trust fund or a risk guarantee (e.g., Development Credit Authority).

Strengthening Private Water & Sanitation Providers

$3 million Increase sustainable access to drinking water and/or improved sanitation in rural areas and small towns by: (1) strengthening institutions to deliver WASH services (planning, budgeting, monitoring); (2) increasing the availability of functional water and sanitation infrastructure in select districts; (3) testing and/or scaling up innovative financing and business models to increase sustainability. To the extent feasible, the activity will aim to share best practices from USAID’s engagement with PWPs in the greater Maputo area with investment opportunities in Cabo Delgado, Nampula, and Zambezia provinces.

Strengthening associations of PWPs to scale investments and share risk in untapped and relatively more distant markets will also be explored. Technical training to both public and private water engineers and technicians, particularly those in select districts of northern Mozambique. Activities may also cover Maputo Province.

Parceiros in Cabo Delgado (GDA)

$1.5 million Funds are set aside for activities in Cabo Delgado, perhaps to be implemented through a public private partnership with one or more private sector companies active in Cabo Delgado, a proposed focus area of USAID CDCS under design.