The Government and concessionaires recognize that further optimization of the performance
targets for sewerage and sanitation during the 2008 rate rebasing is necessary to ensure that
MM’s environmental goals are met. While it is envisaged that the main strategy established in
2003 of following a decentralized, phased approach to sewage collection and treatment in MM
will continue to be pursued during and after 2008, the Government is planning to modify the
prioritization of service provision such that the concessionaires’ performance targets will require
them to focus their future infrastructure development in identified environmental hotspots.
However, there is currently very little information available to assist the Government in
identifying these environmental priorities in MM. Bank assistance through this project will help
the Government establish the environmental priorities that will form the basis of the 2008 rate
rebasing, which will commence negotiation in 2007.