WATER SECTOR INVESTMENT APPRAISAL MANUAL: AN APPLICATION CASE TO MOZAMBIQUE

Veronica G. Maigida () and Mikhail Miklyaev ()
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Veronica G. Maigida: Cambridge Resource International Inc.
Mikhail Miklyaev: Department of Economics Queen’s University, Canada, and Cambridge Resource International Inc.

No 2025-08, Development Discussion Papers from JDI Executive Programs

Abstract: The Water Sector Investment Appraisal Manual provides a comprehensive framework for the planning, appraisal, and development of water sector projects in Mozambique. It emphasizes the efficient utilization of limited public resources by ensuring that projects demonstrate economic viability, cost-effectiveness, and alignment with national development goals. The manual also provides tools for conducting cost-benefit analysis (CBA) and cost-effectiveness analysis (CEA), ensuring that projects deliver maximum social and economic benefits. The manual provides robust methodologies for Financial and Economic Analysis. These analyses ensure that projects are not only financially sustainable but also contribute to the overall welfare of the population. The manual also highlights the importance of Stakeholder and Distributional Analysis, ensuring that the impacts of projects on various stakeholder groups are identified and quantified and that benefits are equitably distributed while adverse effects are mitigated. The manual includes illustrative case studies, such as the Maputo Water Rehabilitation and Expansion Project, to demonstrate the application of its methodologies. This project serves as a practical example of how to address challenges like aging infrastructure, water losses, and inadequate service coverage, while aligning with national development strategies and Sustainable Development Goals (SDGs). Given Mozambique's vulnerability to climate-related events, the manual places significant emphasis on Climate Change Risk Screening. Projects are categorized into adaptation, resilience, and mitigation, with tools provided for climate-proofing infrastructure to ensure long-term sustainability. The Water Sector Investment Appraisal Manual is an essential resource for ensuring that water sector investments in Mozambique are economically viable, socially beneficial, and environmentally sustainable. By providing clear guidelines and practical tools, the manual aims to enhance the quality of project development, improve transparency, and contribute to the country's sustainable management of water resources.

Keywords: Cost-benefit analysis (CBA); Cost-effectiveness analysis (CEA); Climate change risk screening; Climate-proofing; Infrastructure sustainability; Mozambique; Water resource management; Water sector (search for similar items in EconPapers)
JEL-codes: D61 Q25 Q56 (search for similar items in EconPapers)
Pages: 90 Pages
New Economics Papers: this item is included in nep-env and nep-ppm
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