The Government of Mozambique represented by the Minister of Economy and Finance Mr. Adriano Maleiane, the Ambassador of France, Mr. Bruno Clerc, and the French Development Agency represented by Ms. Virginie Dago signed the Study Fund Agreement in the amount of 500,000 Euros, on February 12, 2016.
The Study Fund Agreement is part of the debt reduction and development mechanism (C2D) and aims at financing preparatory studies in the field of vocational training, particularly in the tourism and energy sectors. These studies will be the basis for decision-making to fund projects in the two sectors above mentioned during the period 2016-2019.
France and Mozambique have agreed on the mechanism of using debt cancellation funds, and the last installment of the agreement for an amount of EUR 17.5 million, was signed in France in July 2015 during President Nyusi’s visit. Of this amount, 500 000 Euros were allocated to the establishment of the Study Fund which aims to carry out preparatory studies of vocational training to: (i) specify the content of the vocational training projects; (ii) define the institutional arrangements for the projects and; (iii) study the impact on job creation and capacity building.
This project will contribute to answer the challenges of Mozambique concerning the development of technical and vocational training which is a priority of the Government of Mozambique.
Maputo, February 2016 – The African Legal Support Facility (ALSF), the Agence Française de Développement (AFD) and Expertise France opened on Monday, 1st February, 2016, a five-day training on Public Private Partnerships (PPPs) to provide African governments with capacity for structuring win-win PPP projects in an effort to efficiently bridge Africa’s infrastructure financing needs.
Speaking at the opening ceremony of the training workshop Joseph Ribeiro, resident representative in Mozambique of the AfDB, said the regional workshop was a timely intervention given the financing gap and the need for African governments to attract the private sector to invest and operate in public-sector projects.
Virginie Dago, Director of the AFD office in Maputo, reiterated the need for the dissemination of best practices in the preparation of institutional, legal and technical guidelines that are critical for the development of successful PPP projects.
The workshop, which took place in Maputo, attracted 27 participants from 8 African countries. The team consists of regulators, private- and public-sector lawyers, professional services practitioners and financiers from Kenya, Malawi, Mozambique, Nigeria, Rwanda, Tanzania, Sudan and Zimbabwe.
The training covered topics such as an overview of the different contracting models available to public bodies; the guiding principles for structuring a project funding; the financial control of a public-private partnership with the central question of risk allocation between the public entity and the private entity; the drafting of the main provisions of a PPP contract and several tools to negotiate the financial aspects of a PPP.
Furthermore, the participants had the opportunity to visit the Maputo’s harbor and to talk to his current director about the mains challenges of its development that will need successful PPP. The Maputo’s harbor, the biggest one in Mozambique, is strategically linked to South Africa (Gauteng) and the landlocked countries of the area, especially Zimbabwe and Zambia.
This workshop is the eighth PPP training cycle seminars (aim of 15 workshops until 2017) dedicated to African executives involved in PPPs. Two kinds of workshops are being organized over three years:
• 9 workshops about an Introduction to PPP in different African capitals like the one which has been held in Maputo
• 6 sectorial workshops (Energy, transport and urban services) at Cefeb’s office in Marseille
The 4th C2D contract signed on the 20th of July 2015 during the presidential visit of H.E Mr Filipe Jacinto Nyusi, President of the Republic of Mozambique, to France, approved the use an amount of 10 MEUR of the total sum of 17.5 MEUR made available, for General Budget Support in favor of the Mozambican Government.
Presently, France, represented by H.E Mr Bruno Clerc, Ambassador of France in Mozambique, signs the Agreement for General Budget Support which governs the 10 MEUR grant financing. The grant will be disbursed in four annual instalments, the first of which ( 4 MEUR) shall be released by the end of this year.
The direct French contribution to the General Budget Support falls within the framework of the Coordination Group of Support composed by 14 donor countries which ensure the implementation and monitoring of Government 5 Year Plan in order to reduce poverty and promote inclusive growth.