Maputo — The French government signed this Friday in Maputo an agreement under which it will disburse a sum of 900.000 euros to support Mozambique's project for Good Governance and Public Funding.

The Governor of the Central Bank, Ernesto Gove, signed the agreement, on behalf of the Mozambican government, and the French ambassador, Thierry Viteau, on behalf of that European country.

This follows another partnership accord signed in 2006 by both governments.

The idea is to bring to Mozambique in the form of donations, financial support from France and other European countries for the implementation of Good Governance projects.

The money will be used to fund urban institutions and social development of Maputo's neighbourhoods, development of provincial capitals municipalities and administrative reforms.

Speaking shortly after the signing of the agreement Gove said, "this funding will have a crucial contribution for the growth of country's economy, poverty reduction projects and improve social conditions of the citizens".

The agreement covers the next three years.

For his part, the French ambassador said that is was his belief that this support would improve the conditions of local governments.

"For us it is an honour to participate with this modest donation in the development of Mozambique and strengthen the solidarity between both countries", stressed Viteau.

Cooperation between France and Mozambique dates back to 1981. French support to Mozambique is essentially based on donations, with France being one of the major donors for Mozambique's development.