The project was designed as a long-termcapacity building and institutional development projectutilizing a pilot funding program, Municipal Grant Fund(MGF), as the first stage of support for municipalinfrastructure and services. The original four componentsincluded (a) Legal and Institutional Reform; (b) MunicipalCapacity Building; (c) Municipal Grants; and (d) ProjectManagement and Technical Assistance. The restructuredproject development objectives were to assist the Governmentof Mozambique to operationalize the legal, institutional andfiscal framework for municipal governance; develop asustainable training and technical assistance system andincrease the capacity of municipality officials andpersonnel; and establish an operating mechanism forproviding grants to municipalities through a pilot programin eight cities to finance capital investments for municipalcapacity building and infrastructure. Some of the lessonslearned are as follows: (a) The design of a project and inparticular of a pilot program should be simple and withinthe capacity of the staff and agencies responsible for itsimplementation. (b) Team leaders from government and Bankproject teams must develop strong working relationshipsbuilt on effective communication so that both organizationsare working toward the same objective.
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