Partners

for Water - The case of climate resilient urban development in Beira, Mozambique


The City of Beira
Beira is a coastal city of 500,000 with a sizeable port. Through a number of transport corridors Beira
connects with the interior of Mozambique and with neighboring countries such as Malawi, Zimbabwe and
Zambia. People in Beira experience multiple challenges: poverty, youth unemployment, poor housing,
pollution. They experience water challenges as well: poor water and sanitation services, flooding associated
with intense rainfall, coastal erosion and storm surges from the Indian Ocean. And infrastructural challenges:
dilapidated roads, electricity outages, sedimentation of the port access channel, and traffic congestion, etc.

Beira development vision 2035 the planning process
In 2011, the Dutch Government and the City of Beira agreed to enter into a medium term cooperation
process to enhance the citys resilience to flooding and help it adapt to climate change. First stage in this
process was the preparation of a 2035 development vision for the city. This was financed through the Dutch
Partners for Water program. Primary entry point for the planning process were the citys water challenges.
The planning process was conducted by a team of urban planners, engineers, water experts and economists.
It was led by the charismatic Mayor of Beira. He was re-elected for a second 7-year term in 2011 with the
support of more than two thirds of the votey. He recognized the urban planning process as an opportunity to
develop momentum for an upgrade of the citys ailing infrastructure. He also saw it as an opportunity to
strengthen relationships with key actors in the city such as the port and railroads company CFM, various
private sector associations, foreign investors such as the Brazilian mining company Vale and several central
government agencies. He invited these actors to participate in a stakeholder board that also included
universities and public utilities. This group identified a general direction for the citys long term development
as well as a number of priority infrastructure projects.

To support prioritization of investments, a simulation model was developed to gain insight into flooding and
drainage characteristics. An analysis of the citys recent economic development trajectory and its future
potential was also used to inform the planning process.
An independent Dutch process facilitator was appointed who supported the Mayor in connecting
stakeholders, promoting information sharing between them, identifying win-win opportunities, and guiding
them to the City hall where the Mayor would then broker common understanding and agreements. The
facilitator also acted as the liaison between the Dutch Government and the stakeholders in Beira.
It so happened that the Port of Beira developed its own master plan at the same time. Inspired by the
participatory planning process for the city, and with some support from the process facilitator, the
Municipality and the Port saw advantages in coordinating their planning exercises. This was unusual.
Common practice is that government entities in Beira do not cooperate much. They prefer to work in
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Partners for Water - The case of climate resilient urban development in Beira, Mozambique


isolation. They are often guided more by political realities in Maputo, the capital, than by local realities in
Beira.
But the dynamics of the planning process inspired the city and the port to coordinate their plans and pursue
coherence and consistency between them. Both recognized the benefits of cooperation: after all, mobility
challenges around port access could not be solved by the Port alone. Improved housing for employees in the
Port would require cooperation with the Municipality. And upgrading of municipal infrastructure would be
much easier if the City were to define win-win opportunities with the port.
Beira development vision 2035
After a twelve months planning period, results were synthesized in a document, a number of maps and in a
number of priority infrastructure investment projects, two of which were elaborated at pre-feasibility level.
The plan was presented to the City Council, which adopted it in March 2014. The plan itself was not very
sophisticated. It was rather technocratic and the social and economic dimensions were somewhat under-
represented. So was the broader ecosystems dimension. But this was recognized. It was acknowledged the
vision 2035 was not a goal in itself. The Mayor and stakeholders saw it as a means to an end: namely to
develop momentum to improve the citys living conditions, its resilience and its business climate.
Implementing a number of priority projects in a coordinated manner, and showing concrete results was the
key . The plan should be a living document. Flaws could be redressed at a later stage.
Joint investors conference of the City and the Port, held in September 2015
The participatory process of developing the plan contributed to new stakeholder dynamics. It inspired the
Port and the Municipality to jointly organize an investors conference. After all, implementation of the plan
requires investors.
As the development vision had only elaborated a number of investment projects at the identification level,
the City and the Port spent the next 18 months to elaborate several priority investments at pre-feasibility
level (see below). Moreover, with the aid of the process facilitator, the Mayor started dialogues with several
potential investors aiming to engage them early on.
The conference was held in September 2015. The Mayor and the Ports and Railroads Company co-hosted the
meeting. It attracted three hundred participants, amongst who a sizeable number of financial institutions
and potential investors. It brought unusual suspects together that would normally not sit at the same
table. It inspired new ideas for new alliances and new initiatives in many.
Priority investment projects
Ahead of the Investors Conference, several of the highest ranking project ideas included in the 2035
development vision were elaborated:

A land development company: a business cases was elaborated for the establishment of an autonomous
public-private entity that could raise, level and drain terrains prior to their development for port expansion,
industrial development, or social housing. It would constitute a mechanism for climate change adaptation
and for more planned and resilient development in a city that has developed organically to date. Economies
of scale in leveling and wholesale procurement of sand at substantially lower than existing retail prices, are
the foundation for the business case. The Municipality engaged with Dutch Development Bank FMO, and
signed an MoU in September 2015 to explore the joint establishment of such land development company
through the implementation of 2 pilot projects: one for an industrial zone and one for a new neighborhood
that would accommodate 60% poor and 40% wealthier segments of the population.
Maraza New Town: an urban design was elaborated for a neighborhood in Maraza; an as yet undeveloped
zone inside the city. British social investor REALL signed an MoU in September 2015 with the Municipality for
the development of around 500 housing units in the medium term, and five to ten model homes in the short
term, catering for the various income groups in proportion to their representation in the city (approximately
60% poor, 25% lower middle class, 10% upper middle class and 5% wealthy). The first stage of the new
neighborhood would coincide with land development pilot project for housing. And REALL would be a
launching customer of the land development company. Cornelder de Mozambique, the port operator, has
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Partners for Water - The case of climate resilient urban development in Beira, Mozambique


expressed interest in becoming a customer of REALL to house several hundreds of their employees and their
families. This would imply the mobilization of private finance for what is essentially a climate adaptation
project.

A new Port Access Road: a prefeasibility study was elaborated for the construction of a new port access
road that would redirect around 800 trucks per day that now cross the city centre, causing safety hazards,
pollution and blockage of traffic in various neighborhoods, towards a new trajectory through currently
unpopulated areas that are designated for industrial development and port expansion in the coming
decades. The preparatory feasibility study and the environmental and social impact assessment will be
financed through the Dutch Develop2Build facility.
Improving urban drainage and local buffering of rainfall: a prefeasibility study was elaborated for a large
variety of small-scale measures that could be integrated with the existing Chota neighborhood. These will
diminish local flooding. They will also reduce the discharge to a neighboring community downstream and
alleviate flooding hazards there. A selection of these measures was incorporated in the Maraza urban
design. The functioning of the drainage system in a large part of the city would be greatly improved if a large
flood runoff retention basin were to be constructed downstream. There are prospects that the World Bank
may finance the latter. It could be part of a next phase in an ongoing drainage program.
Expanding the urban water supply system: a prefeasibility study was conducted for the expansion of the
water production plant at the Pungwe river, the transmission mains to the city as well as the distribution
network, including the Maraza new town area. The water utility FIPAG applied for financing of the Feasibility
Studies for this expansion through the Develop2Build facility. This application was recently granted. The
European Investment Bank has expressed interest in co-financing this investment.
Continuation of the stakeholder process
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Partners for Water - The case of climate resilient urban development in Beira, Mozambique


At the stakeholder conference the parties committed to a number of future milestones. With 18 August
being the yearly day of celebration of the city, a number of deliverables were agreed for 18 August 2016,
including the presentation of the feasibility study for the port access road, the handover of the keys for the
first model homes to be built by REALL, and the legal establishment of the Land Development Company by
its shareholders. For subsequent years other deliverables were penciled into the agenda on 18 August.

In order to advance the priority investment projects mentioned above, a number of complex political
processes will need to advance.
- Negotiations around the supply of sand for land development through dredging of the port access
channel. Currently this sand is dumped into the open sea rather than on land.
- Negotiations between the Municipality and the national land register, in order to include the city as
a pilot in a nation-wide program to improve land registration. Only when complete transparency
about land ownership and land titles can be ensured, will it be feasible to attract private investment
in ventures such as a land development company.
- Negotiations between the Municipality and the Ministry of Finance about investments such as the
port access road and the expansion of the citys water supply system
Reflection
Over the four year period since the engagement of the Dutch government in the urban development process
in Beira, substantial progress was made. Key factors include:
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A charismatic Mayor who leads the process with a focus on delivering results for his citizens
A trusted process facilitator with a long track record in Beira, respected by the local players
A broad spectrum of relations between the Dutch and Beira and the pro-active engagement of the
Dutch Embassy in Maputo, giving legitimacy to Dutch facilitation of the urban development process
Pragmatism in the planning process, recognizing early on that momentum could be built around
specific infrastructure development projects; and that more sophisticated planning steps could
always be added later
One participant in the planning process adequately captured the relevance of the actual planning
document as follows: it is always better to have a development vision, than to have none. It is
easier to discuss on the basis of a plan, than on the basis of a blank sheet. But is does not mean that
the plan is a straightjacket.
Flexibility to venture into areas of land, roads and social housing development, while having started
from a water entry point; climate adaptation links all these interventions with water
Efforts to mobilise climate financing are crucial; Beira presents interesting opportunities to do so.
The prospects of leveraging private investment finance with public aid monies, and of combining
elements of aid and trade.
The investors conference brought unusual suspects together, presenting a platform for the
formation of new partnership initiatives. Continued availability of the process facilitator can help to
advance these initiatives from the idea stage to implementation.
A film documentary is being made, that tries to capture the relevant stages of the process and the
results that are being achieved.