Mozambique: Maputo Urban Transformation Project receives subsidy

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Maputo Urban Transformation Project in Mozambique is set to receive financial support in form of a US$ 100m grant from the International Development Association (IDA), a member of the World Bank Group that offers concessional loans and grants to the world’s poorest developing countries.

The grant will particularly finance critical urban infrastructure investments in the city and support the implementation of municipal reforms. Idah Z. Pswarayi-Riddihough, the World Bank’s country director for Mozambique, Madagascar, Comoros, Mauritius, and Seychelles said that this investment will ultimately contribute to harnessing the role of Maputo as the East African country’s economic powerhouse by investing in urban infrastructure and services while supporting critical reforms to ensure that urbanization in the capital city can contribute to economic growth, poverty reduction, and structural transformation.

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Additional components of the Maputo Urban Transformation Project

In addition to the infrastructure investments and support to the implementation of municipal reforms, the project will also tackle waste management and urban planning which are two of the greatest challenges that the city faces, through the construction of its first sanitary landfill and the decommissioning of the Hulene dumpsite, and the implementation of an urban plan for KaTembe Municipal District where most future urban growth is expected to take place.

These components include land demarcation, construction of priority urban infrastructures, and implementation of sites-and-services for low-income families. They will create incentives for better solid waste management services, restore livelihoods for informal waste pickers, and increase reuse or recycling practices.

Improvement to access to safe water and sanitation will also be looked into under the aforementioned components.

Efforts to mitigate the economic impact of COVID-19

A portion of the project’s financing will also help the current efforts to mitigate the economic impact of COVID-19 on the most vulnerable in Maputo.