Call for tenders - Strengthening public finance for urban sanitation services in Mozambique

  • Guy
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Call for tenders - Strengthening public finance for urban sanitation services in Mozambique

Background:
It is estimated that poor sanitation costs Maputo’s residents over US$ 7.4 million annually as a result of access time lost, premature deaths, productivity losses due to sickness, and health care costs. The majority of the population relies on on-site sanitation, 28% on septic tanks, and 28% on improved latrines. Many of these systems are emptied by mechanical and manual private operators paid for by households themselves, the total value of which is unknown but thought to be significant. The remainder of the population, over 30%, have access to a non-improved latrine. It is this latter section of population that is most negatively and disproportionally impacted by poor sanitation.

To address this issue and for several decades, local governments and CRA (Conselho de Regulação de Águas, the national water and sanitation regulator) have been working to introduce sanitation surcharges to increase financing for sanitation services. In Beira, a sanitation surcharge was levied – with some interruption – on water bills since the 1970s. Since 1985, that surcharge was set at 15%, 2.5% of which is kept by the water utility to cover administrative and collection costs, and 12.5% transferred to the municipality. The effectiveness and transparency of the surcharge has been mixed, with previous concerns that funds were not always ring-fenced for sanitation services. This situation however has reportedly improved.

In 2001, CMM (Municipal Council of Maputo) approved a sanitation surcharge of 10% on the water utility’s (Águas da Região de Maputo – AdeM) bill for households consuming more than 10m3/month, what was identified as being a “domestic social surcharge”. The surcharge was not applied due to the limited evidence available on what services it could finance, as well as its practicality, fairness, and financial sustainability. From 2013 to 2015 CRA and WSUP worked with CMM to generate and strengthen the evidence available to support the introduction of a sustainable, fair and practical sanitation surcharge.

In December 2016, a new sanitation surcharge was approved by CMM, with plans for implementation in 2017. WSUP intends to support CMM in the implementation of the surcharge and introduction of eligible sanitation services. CRA used the same financial model in Beira and Quilimane. CRA and WSUP intend to undertake a 6 month research project to capture learning from the implementation of previous activities in Maputo, and the replication by CRA in Beira and Quelimane. This includes a documentation of the process, an assessment of the sanitation surcharge, regulatory framework agreement and compliance with the agreement (transfers and investments).

Consultancy objective:
The overall objective of this consultancy is to strengthen CRA's capacity to more effectively and equitably mobilise public finance into urban sanitation services in Mozambique. More specifically, the objectives are:

1. adapt tools and strengthen capacity to model financial cost of delivering sanitation services in urban centres of Mozambique, and
2. strengthen CRA’s regulatory mechanisms, tools and oversight to ensure more effective and equitable sanitation service delivery in Mozambique.

Details:
Bids due: Before 23:59 (GMT +2) on 22nd March 2018
Location: Desk and Mozambique
Start date of consultancy: 30th March 2018
End date of consultancy: 18th September 2018

More information and details of how to apply can be accessed on the WSUP website or the attached file.
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