Price rises in Mozambique affect Millennium Challenge Account projects

15 June 2011

Maputo, Mozambique, 15 June – The rise in prices of fuels and construction materials has forced a review of the projects listed for the Millennium Challenge Account (MCA), an aid programme funded by the United States federal government said Paulo Fumane, the executive director of MCA – Moçambique.

The MCA has funding of US$506.9 million mainly to be applied to the repair or construction of infrastructures in four of Mozambique’s provinces, most of which will be channelled into drinking water and sanitation (US$203.6 million) and road repairs (US$176.3 million), sectors that will be affected by the rise in prices of fuel and building materials.

Speaking to Mozambican daily newspaper Notícias Paulo Fumane said that indicative budgets had been based on pre-feasibility studies and, although these included a margin of error, the current situation was that with the same amount of funding it would not be possible to do everything that was initially planned.

The execution of the aid programme, which was signed in June 2007, in Washington, is 30 months from ending and there is still a lot of work to be done in almost all the components of the programme.

The initial plan including supplying water to the cities of Quelimane, Pemba and Nampula, but the review has made Nampula the priority and in Quelimane and Pemba the plan is now to carry out small projects. (macauhub)