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6.4.1 Summary and Conclusion

The main concern around funding for development, operation and maintenance of infrastructure and services is that effective, equitable mechanisms need to be created to ensure that developers of concessions (both private and commercial) contribute in proportion to the burden their developments will place on public resources and the value and benefit they will derive from improved infrastructure and administrative capacity.

Such mechanisms should not be created in isolation by different departments, but in co- ordinated fashion to ensure proper distribution of resources and directing of investment in accordance with IDPs. This could possibly be done by the proposed Intergovernmental Committee, without or preferably with the assistance of the Development Agency.

Controls will have to be instituted to ensure that revenues collected are applied directly to the cost centres they relate to, that the money remains in local coffers, and that any apportionments to "general overheads" or cross-subsidisation of essential social services which do not always attract revenue, are done in a sensible and transparent way. It is also important that procedures be instituted to ensure the shortest possible route of funds from source to service providers/contractors.

This report does not make much of grant or donor funding. These sources are often crucial in providing start-up funding for key interventions. They should continue to be pursued for such applications for instance the initial resourcing of the proposed Intergovernmental Committee and Development Agency. For long-term sustainability, however, a local revenue base linked to cost-recovery and payment for benefit/value received has to be established, expanded and maintained.

6.5 Proposed Development Agency

Mozambique is currently rebuilding its economy after a long period of disruption. This puts strain on the financial, administrative and technical capacity of government to deal alone with development needs. This is especially true for local government in an area such as Xai-Xai Beach, where there is huge potential and pressure for integrated and sustainable tourism and other development.

A first step in enhancing efficiency and ensuring integrated approaches would be greater intergovernmental co-ordination as suggested in 6.2.2 above. Even if this is done though, there are still many mechanisms to be set up, detailed guidelines and procedures to be elaborated, and daily implementation tasks to be carried out which would probably extend local government beyond its current level of technical and other resources and capacity.

It is, therefore, proposed that local private sector capacity be drawn in the form of a Development Agency acting on behalf of and under supervision of local government.

This Agency would not have statutory powers, but would be a properly constituted legal entity, with a clear mandate from the Mayor's office to project manage infrastructure development and the provision of certain services in the area. It is also suggested that it would take part in and advise the proposed Intergovernmental Committee if that body is established.

It is proposed that the Agency be set up in stages, and that it starts operations on a limited scale. In the first stage it will act as a "Provisional Agency", SUIMO being the suggested vehicle for this stage. During this stage its main tasks will be:

  • 1.

    Acting as the main member of a task team appointed by the district and local authorities to define the legal and operational framework (including funding proposals) for the proposed Agency;

  • 2.

    Elaboration of detailed action plans and funding frameworks for:

    • Infrastructure development, first for Praia Velha and then the whole of the IDP area, prioritised in phases (Table 13 and 21);


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