NDF - Financing for climate change and development projects

First NDF grant project in Mozambique


NDF has approved a EUR 3.8 million grant financing to support development of adaptive capacity for climate change

Mozambique’s cities, which are particularly vulnerable to flood and erosion risks, play a critical role in the country’s development by providing essential transport and supporting services to the agriculture, tourism and extractive sectors which are the main sources of the country’s wealth. Most of the urban population (68 percent) lives in cities along the coastline, where the country’s major economic assets (ports, roads, railways and manufacturing industry) are also concentrated. The proposed project will reduce the risks and vulnerabilities associated with climate related impacts, such as flood and erosion, in selected cities.
NDF will in partnership with the World Bank (WB/IDA) finance a component in the Cities and Climate Change Project. The WB project has two components: 1) Strengthening the municipal sector; and 2) Enhancing resilience of strategic coastal cities. The first component will provide support to twenty municipalities to enhance municipal capacity for sustainable decentralised urban management. It includes improving urban planning and land use management, and enhancing municipal financial management and enhanced municipal revenues. At national level, the component will support policy and regulatory framework, capacity development and training.
The second component will provide technical assistance and capacity development to the Ministry of Public Works (DNA and AIAS) and finance rehabilitation and relining of about 10 km of the primary channel of Beira’s drainage system and the institutional strengthening of Beira’s Autonomous Sanitation Service. In the City of Nacala, the component will finance planning, design, and implementation of drainage works in three primary channels (ca. 6 km), associated grading and planting vegetation to increase stability and reduce sediment deposition, plus strengthening of municipal capacity for operation and maintenance of urban drainage infrastructure. The component will furthermore support the development of a Master Drainage and Sanitation Plan for the Greater Maputo area and the design of selected priority drainage investments to help control floods.
The project has a poverty reduction focus since most of the direct project beneficiaries will be persons living in the selected municipalities in urban areas susceptible to flooding and erosion. The majority of direct beneficiaries will be low income households located in informal settlements.
The specific objective/outcome of the NDF support will be that the National Administration of Water and Sanitation Infrastructure (AIAS) and the coastal cities of Beira and Nacala, within their mandate, are able to act on climate variability, by planning and sustainably operating and maintaining erosion and flood control.
The implementation of the NDF financed component will require technical assistance. NDF and WB procurement rules will be followed in the procurement of consulting services.
More information
C36 Mozambique: Coastal Cities and Climate Change