Announcement of First World Bank Water Project in Mozambique on February 13, 1998

First World Bank Water Project in Mozambique Contact: Claire Hervey (202) 473-8294 To obtain project docunents please contact the World Bank's Public Infornmtion Center (PIC) at tel 202-458-5454, fm 202-522-1500, enmi- al:iies WASHINGTON, February 13, 1998 -The World Bank today approved a US$36 million equivalent credit to assist the Goverment of Mozambique in its efforts to inprove water supply and sanitation in rural and urban areas. This loan will take effect ahead of schedule in order to mobilize funds for chlorine treatment of urban water supplies in Maputo and Beira, where cases of Cholera have reached over 10,000, including more than 400 dead. This project will lay the groundwork for an increase in the quality, Mozambique: Facts at a Glance coverage, and sustainability of Mozambique's water supply and sanitation services through several components, including policy * Mozambique is the poorest country in the world with only US$90 development, planning new sanitation and drainage systems; privatization per capita GNP (1997). and inprovennt of urban water systems; education, training, and * A 20-year civil war, which ended in 1994, and several droughts, capacity building in ministries, universities, and conmmnities; participatory have exacerbated problems ofpoor water supply and sanitation rural water supply development; rehabilitation of the Corurmna Danr * Roughly 75 percent of the population does not have access to and joint work with neighboring countries to mnage and develop shared safe water; in rural areas it is more than 80 percent. rivers. * Women and children bear the bulk of the responsibility for water collection-an arduous and time-consuming chore-preventing Inproving lives and promoting prosperity begins with the availability of them from going to school or earning income. safe water in both urban and rural areas. Only about 25 percent of Mozambique's 18 million people have access to safe water. Water collection itself is time-consuming and expensive, robbing women and children of valuable time which could otherwise be spent in school or earning income. An epidemic of 10,000 cases of Cholera, a water-borne disease, which broke out in August, is an acute indication of the state of Mozambique's water and sanitation problems. The Mozambique National Water Development Project's total cost ofUS$56.9 million, will be financed by a US$36.0 million equivalent (SDR 26.2 million) IDA credit and co-fnanced by the Government of Mozambique in the amount of US$2.5 million, the balance to be made up by various bilateral lenders. The IDA credit is on standard terms of 40 years naturity, 10 years grace period, and 0.75 percent service charge.