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committee should be constituted at quite a high level, say under the auspices of the Governor's office with political backing from a key ministry or even the President's office).

  • The need to refer incomplete or complex proposals back to applicants or to higher authorities and the waste of time and delays this may cause (perhaps a smaller technical committee, or the Development Agency if it is realised, could be tasked with pre-screening of, and assistance in the preparation of proposals and applications at a reasonable fee to the applicant).

  • Conflict of interest and pressure-group influence. The key is to avoid concentration of power and exclusion of some sectors. (This is a matter best understood and dealt with by participants, local and otherwise).

If, for the above or other reasons, it is not possible or considered desirable to form such a formal committee, at least the establishment of some form of informal forum for intergovernmental consultation and streamlining should be explored. This forum could at the very least, with the help of the Development Agency, if it is established, compile a simple, practical manual for project applicants and officials alike, and even provide some "training" and/or information service.

    • 6.3

      Funding Framework

      • 6.3.1


There are three main areas of funding to be considered. The first is operational funding for local government to ensure that it can continue to carry out its task of providing services to the community, and of regulation and administration. The second concerns bridging finance or development capital for infrastructure construction. The third area of funding concerns the ongoing operation and maintenance of infrastructure and services provided by local authorities and utility companies. A funding framework for a developing area such as Xai-Xai Beach would typically rely on a combination of:

  • Subsidy from central and provincial government;

  • Taxes and levies on locals and visitors;

  • Cost recovery on services provided at local level;

  • Loans (short-term and long-term both from International Development Banks and

local banks);

  • Donor funding (grants and special loans); and

  • Private capital (equity).

It could be seen as the task of the proposed Intergovernmental Development Committee, assisted by the Development Agency, to elaborate a realistic, practical and equitable system of funding the development needs of the area from the above sources.

The main instruments for raising funds locally are:

  • Taxes and levies on local business and residents to fund administration costs and recover capital costs of infrastructure;

  • Tourist levies on visitors;

  • Revenues from the sale or cost recovery of so-called trading services (water, sewage, waste removal, etc.); and

  • Private investment in infrastructure.

Observation of the existing situation suggests that the major unutilised source of potential funding is the basic "land value" of concessions to private investors/developers.


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