Maputo, Mozambique
Mozambique has moved forward with a key urban infrastructure investment by awarding a construction contract under the Urban Water Security Project, a World Bank–financed program aimed at strengthening water supply reliability in major cities. The contract supports the construction of a new water distribution center in Beira, one of the country’s most important coastal and commercial hubs.
The award was published on October 30, 2025, under Notice No. OP00405181, and forms part of Mozambique’s broader effort to modernize urban water systems and improve service continuity for growing populations.
Contract Award Overview
The contract is linked to Project ID P509890 and is financed through IDA Credit No. E4730. Procurement was conducted using the Direct Selection (DIR) method, reflecting the project’s implementation needs and the technical capacity required for timely delivery.
Project - Urban Water Security Project
Borrower Reference - FIPAG/WASISII/W-14/22
Scope - Construction of a new distribution center in Beira
Procurement Method - Direct Selection
Contract Duration - 24 months
Award Notification Date - April 17, 2023
Project Location - Beira, Mozambique
Awarded Contractor
The contract has been awarded to Jiangsu Geology and Engineering Co. Ltd (SUGEC), an engineering and construction firm with an established operational presence in Mozambique. The company is expected to deliver the civil works required for the new distribution centre, a critical node in Beira’s urban water supply network.
Financial Details
According to the published award notice:
Bid Price at Opening - MZN 793,459,218.71
Evaluated Bid Price - MZN 79,345,921,871.00 (as stated in the notice)
Signed Contract Price - MZN 1,293,423.93
The figures reflect the values disclosed in the official publication. Any variations between bid, evaluated, and signed prices are typically subject to contractual structuring, currency adjustments, or reporting formats used in procurement disclosures.
Strategic Importance of the Project
The Urban Water Security Project is a flagship investment supporting climate-resilient and reliable urban water systems in Mozambique. Beira, which has faced repeated climate shocks and infrastructure stress, is a priority city for water security improvements.
The new distribution centre is expected to:
Improve water storage and pressure management
Enhance distribution efficiency and reduce system losses
Support service expansion to underserved urban areas
By strengthening core infrastructure, the project contributes to improved public health outcomes, economic resilience, and long-term urban development.
Institutional Context
The project is implemented by FIPAG, Mozambique’s water supply asset management fund, with financial and technical support from the World Bank. The collaboration highlights continued donor engagement in Mozambique’s water and sanitation sector.
Outlook
With the contract now awarded, construction activities in Beira are expected to progress over the 24-month implementation period. Additional procurement packages under the Urban Water Security Project are anticipated as Mozambique continues to invest in resilient urban water infrastructure.
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