Regulation of formal and informal water service providers in peri-urban areas of Maputo, Mozambique

Abstract Service delivery to large areas of peri-urban Maputo depends largely on alternative informal service providers. These providers are located within the limits of Maputo, in a water supply area that is formally leased to a private operator. Informal service providers therefore operate within the main regulatory body, but their activity is presently unregulated. This paper discusses activities of informal alternative providers in peri-urban areas of Maputo, Mozambique, and opportunities to expand the reach and influence of the main regulatory body to this segment of service providers. The study was commissioned to assist the main regulatory body to setup a strategy to improve the pro-poor focus of the existing regulatory environment and so improve access to potable water for the majority of the under-serviced urban poor. Results of field surveys conducted in selected areas of peri-urban Maputo are presented. The surveys focused on the quality of services, the legal status of independent providers and the organization of water supply services at neighbourhood level. The results indicate that household water resellers and small-scale independent provides are presently an important and indispensable source of access to water for the majority of unconnected residents in peri-urban Maputo and that they are reported to cater for as many as 21% of unconnected households of such neighbourhoods. In the near future, alternative providers will continue to have a dominant role in service delivery in peri-urban Maputo, therefore their legalization and decentralization of certain regulatory functions to the neighbourhood level is required. A neighbourhood based management model is proposed for that purpose. The model is based on a standpipe management model that is broadened to include alternative service providers. The model addresses issues such as water pricing, bidding and compliance strategies, channels for consumer’s representation and possibilities of creating neighbourhood-based regulation bodies, which will act as extension branches of the main regulatory body. Sustainability issues around the proposed model are also discussed.