The Government, through AIAS (Governmental agency acting as asset holder and fund manager), has the administration of infrastructure of medium and small towns. In 2009 AIAS was created and a list of 137 towns were identified as small towns and, therefore, to receive support from this organization. AIAS normally rehabilitates existing water schemes or builds new systems. After completion of the rehabilitation/construction works AIAS issues a public tender for the operations of the scheme. Upon successful tendering process, the winning private operator signs a 5 year contract with AIAS. The fund manager and the private operator share responsibilities in terms of maintenance and expansion of services.  The tariff the private operator is allowed to charge is regulated by contract, as well as the amount stipulated for maintenance works and expansion/replacement of pipes (up to 500 m). Maintenance that involves higher amounts is the responsibility of the Government (AIAS). It is essentially a PPP configuration, in the form of a classic lease contract. There are key performance indicators (KPI) that are regularly checked and might have repercussion on the contract, such as water quality, number of new connections and sustainability of the systems. Rural systems are not under AIAS, but they are under the local government instances, or with the direct support of the Ministry of Public Works, often are managed by the community. There are other small towns in Mozambique which are not under AIAS, but they might be transferred to them in the future. In small towns there are hand pumps that cover more remote areas and are not under AIAS, but they have a much lower productivity. Kiosks are gradually being left aside since people prefer to have stand pipes on premises.

The project in Mozambique will initially develop the case study of Moamba. Later on and depending on the progress made the project will expand the work to other small towns in the province of Gaza and Inhambane.