Performance-based financing and capacity building to strengthen WASH systems in Mozambique : early findings

The transforming rural WASH programme in Mozambique combines disbursement linked indicators with capacity building to support and incentivise systemic shifts to deliver sustainable and equitable WASH services to the poor in Mozambique. Funds are directed through the National Programme for Rural Water and Sanitation to deconcentrated government departments that plan, implement and monitor WASH services at provincial and district level. The performance-based approach is being tested in 20 districts in two provinces of Mozambique (Nampula and Zambezia). Early successes point towards the effectiveness of linking collaborative, flexible and adaptive capacity building with performance-based funding in order to unlock specific bottlenecks in the WASH systems. Alignment with government priorities and effective transfer of responsibility and accountability for implementation by sub-national government are key elements of success. Procurement processes have become more effective but contract management still needs to be improved to ensure the quality and sustainability of services provided. Main challenges remain shifting knowledge and behaviours around gender and equity, and ensuring that domestic financing for capital and operational costs increases. [author abstract]