Reform is definitely under way in thewater sector. Mozambique's goals and macro strategiesare laid out in the Poverty Reduction Action Plan (PARPA)which is the main reference for water supply and sanitationpolicies. A water policy was established in 2007 which setsnational targets for water supply and sanitation coverage,specifically, to achieve the millennium development goals.The sector also has a national strategy for the managementof water resources. In addition, the different watersubsectors have generated a large set of additional plansand strategies. The Medium-Term Fiscal Framework (MTFF) withspecific proposals for each institution or agency in thesector, and the Economic and Social Plan for RuralAgriculture. The concurrence of these planning documents atthe provincial and local levels requires strong coordinationto ensure that the sector uses an integrated approach thatbalances the interests of the different sub-sectors withthat of the overall sector. Yet, currently the sector stilllacks a strong coordination mechanism. As a result of thesepolicy changes, the Government's actual expenditure forthe sector increased from $27 million in 2002 to $95 millionin 2008; this is unlikely to be the total of fundingavailable in the sector, but what could be substantiatedfrom the government accounts. Donors supply most of fundingin the form of investment funding. This public expenditurereview focuses on the quantity and quality ofMozambique's public funding process to assess how wellbudget allocations for the water sector actually translateinto better water and sanitation service delivery.
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