Mozambique Urban Development and Decentralization Project

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The objective of the National Urban Development and Decentralization Project for Mozambique is to strengthen institutional performance and deliver improved infrastructure and services in participating local entities. The Project has four components. 1. Urban Infrastructure and Municipal Services component will provide financing to improve urban infrastructure and municipal services and strengthen urban management capacity in participating municipalities. 1A. Municipal Performance Grants subcomponent will finance works, goods, and institutional strengthening activities which lead to improvements in urban infrastructure and basics service. This subcomponent will also finance the independent Annual Performance Assessments that will be the basis for the yearly disbursements to eligible municipalities. 1B. Maximizing Finance for Urban Development subcomponent will provide funds for any of the 53 municipal councils in Mozambique that can demonstrate viable projects that could complement, attract, or leverage private sector investments to improve urban infrastructure and municipal service in areas such as solid waste management, urban mobility, municipal markets, housing, and economic activities. 1C. Urban Management Technical Assistance subcomponent will improve the institutional capacity in the participating municipalities on core urban management functions. 2. Decentralization Policy Reforms and Institutional Strengthening component will improve resources, performance, and accountability of municipalities, provinces, and districts. 2A. Support to the Overall Leadership of the Decentralization Reform Process subcomponent will support the Ministry of State Administration and Public Service, the Ministry of Economy and Finance (MEF), and the Mozambique National Association of Municipalities in leading, advocating, and coordinating decentralization reforms—through a mix of technical assistance and capacity building. 2B. Institutional Strengthening of Subnational Entities in Public Sector and Financial Management subcomponent will help strengthen the capacity of actors involved in the recent decentralization reforms, through supporting the Government in creating a comprehensive supply-driven capacity-building strategy and mechanisms for assisting and empowering provinces and municipalities in managing human and financial resources and develop comprehensive training programs and change management activities, in collaboration with public training entities as well as roll out such trainings packages for key public administration and governance positions at the local level. 3. Project Management component will finance project preparation and implementation management costs, including technical studies, Project Implementation Unit (PIU) staff, and the PIU’s operational costs. The PIU will be responsible for the overall project management functions across all components. 4. Contingency Emergency Response component will facilitate access to rapid financing by reallocation of uncommitted project funds in the event of an Eligible Crisis or Emergency.