FIPAG - Fund for Investment and Assets of Water Supply is a public institution of national scope, endowed with legal personality and administrative, financial and patrimonial autonomy supervised by the Ministry of Public Works, Housing and Water Resources. 

WATER SUPPLY FRAMEWORK IN MOZAMBIQUE
Urban water supply in Mozambique is a strategic priority embodied in the main legal instruments and strategic planning of the water sector at national level, reflecting the position of the Government of Mozambique in relation to the legal framework, architecture institutional, stakeholders and strategy of promoting access to water in a sustainable manner by citizens.

Urban water supply is addressed in depth by the following instruments: Government's Five-Year Program, National Water Supply and Sanitation Strategy and Delegated Water Supply Management Framework.

 

FIPAG Framework

Created within the framework of the implementation of the Delegated Management Framework (QDG) in 1998, the Fund for Investment and Assets of Water Supply (FIPAG) is a national public institution with legal personality and financial, administrative and patrimonial autonomy, supervised sectorally by the Minister who oversees the Area of ​​Water Supply and financially by the Minister who oversees the Area of ​​Finance. 

FIPAG's main function is to manage the Heritage and Public Investment Program in the Water Supply Systems of the following cities: Nampula, Nacala, Angoche, Pemba, Lichinga, Cuamba, Beira / Dondo, Quelimane, Chimoio / Gondola / Manica, Tete / Moatize, Inhambane, Maxixe, Xai-Xai and Maputo / Matola / Boane.
If the FIPAG's mandate is to be adjusted, by decree 48/2012 of 28 December, the Council of Ministers approved FIPAG's new Organic Statute, which, among other tasks, opens space for FIPAG to:

• act on behalf of the state, as the principal interlocutor with the private operator

• manage, in a efficient, financially viable manner, the Public and Private Investment Program in the Water Supply Systems entrusted to it

• to manage operating and operating assets allocated to water supply systems entrusted to it on a temporary basis, among others.

HISTORY OF FIPAG

In the last three decades, the riverside populations have used the courses of some rivers of Mozambique for irrigation and for other types of use. This was the main reason for the country to face severe water shortages between 1991 and 1996. 

The Government responded to water shortages by reforming the supply of urban water supplies, resulting in the adoption of the National Water Policy and implementation of the National Water Development Projects and the implementation of the National Water Development Projects I and II (NWDP I and II). 
These projects include:

• complete management by the private sector for water supply in the top five major cities (later to be expanded to eight cities);
• Tariff reforms to meet total cost recovery
• the creation of a Regulatory Council (CRA - Water Supply Regulation Council) for this sector and an Investment and Heritage Fund - FIPAG.

FIPAG was established by Decree No. 73/98 of the Council of Ministers on 23 December 1998. The provision of water with fixed funds, prior to the provision of state water companies in Maputo, Beira, Quelimane, Nampula and Pemba transferred to FIPAG. 

A Coordinating Forum was set up as an advisory body for Private Sector Participation (PSP) for the Ministry of Public Works and Housing - MOPH. Appoints the members to the FIPAG Board of Directors and is chaired by the Director of DNA - National Directorate of Water includes members appointed by MPF - Ministry of Planning and Finance and MAE - Ministry of State Administration, as well as representatives of CRA, FIPAG and authorities locations.

FIPAG was created to assume the works and commitments for water supply of the four water companies of Beira, Quelimane, Nampula and Pemba. The authority and responsibility of FIPAG include:

• financial and investment management for the rehabilitation and expansion of the assets of the water supply systems;
• maximization of efficiency and the return of existing assets, and
• management contract, monitoring and guaranteeing compliance with the contractual obligations of the Private Operator in Mozambique.

FIPAG negotiated a contract on September 27, 1999, guaranteeing a public exploration service for the drinking water supply service to the city of Maputo, to a consortium made up of French, Portuguese and Mozambican companies. The largest shareholder in this consortium was SAUR International (France). 

According to the agreement, the Consortium became known as the Private Operator (OP) - Aguas de Moçambique having a 15-year Exploration Assignment contract for the city of Maputo. The same consortium was also contracted to manage the water supply systems in the cities of Beira, Quelimane, Nampula and Pemba based on a Management Agreement for five years.