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The objectives of the Second Water Services and Institutional Support Project are to: (a) increase water service coverage in key cities in Mozambique?s territory; (b) strengthen the institutional and regulatory capacity for water supply services in the Northern, Central and Southern regions of Mozambique; and (c) support Mozambique to respond promptly and effectively to an Eligible Crisis or Emergency. There are five components to the project, the first component being rehabilitation and expansion of water supply production and distribution. The second component is the Institutional Support. This component will also support project management, supervision for contracts under component one, audits, training, and various technical studies as needed, as well as technical assistance to FIPAG for the implementation of environmental and social safeguards. The third component is the output-based payments for low-income-household connections. The objective of the component is to increase access to piped-water connections for low-income households in the cities of the central and northern regions of the recipient and in the Maputo region by providing output-based payments to the regional utilities to support the provision of water services to the poor by facilitating the uptake of connections for low-income households through grant payments to reimburse the costs of eligible connections. Finally, the fourth component is the contingent emergency response (zero-budget).
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