The Mozambican government's Water Supply Investment and Assets Fund (FIPAG) on Thursday signed contracts with two Chinese companies to expand water supply in the four southern Mozambican cities, Xai-Xai, Chokwe, Inhambane and Maxixe.

The tender for the work in Xai-Xai and Chokwe was launched in December 2004. 10 companies or consortia put in bids, and the contract was won by China Geo Engineering Corporation.

As for Inhambane and Maxixe, this tender was launched in January, and eight companies bid for the work. The contract was awarded to China Henan International.

The contract for inspecting the work in all four cities was won by the Zimbabwean company Lamont.

The Mozambican government is paying for ten percent of the work - the rest comes from the African Development Bank (ADB).

According to ADB regional director Alex Rugama, the ADB is contributing with a loan of 28 million US dollars to finance the expansion, and a grant of 3.5 million dollars for "institutional support."

In the largest of the four cities, Xai-Xai, only 40 percent of the population of 117,000 are supplied by the existing system. After the expansion that proportion should more than double, to 81 percent.

Source: Xinhua