Maputo — The number of projects "at risk" in Mozambique that are financed by the World Bank has fallen from three in December 2007 to just one in September 2008, according to the World Bank's director for Mozambique, Michael Baxter.

Speaking at the opening of the annual meeting between the Mozambican government and the Bank to analyse the performance of the portfolio of projects financed by the Bank, Baxter said "there's been a very significant improvement in the portfolio".

He did not go into details about the one project that remains problematic, other than to indicate that it is in the area of health care. The details of this ailing project will be discussed during the two day meeting.

Baxter added that, as a result of the improved performance, the World Bank's soft loans affiliate, the International Development Association (IDA), will have more resources available for Mozambique in the coming years.

For his part, the Minister of Planning and Development, Aiuba Cuereneia, said that, despite satisfaction at the progress of the portfolio, there were still many challenges to overcome.

In particular, he wanted to see greater flexibility in the procedures demanded by the World Bank and other foreign partners in their relations with the government, and a more efficient management of human and financial resources.

Problems discussed at the 2007 assessment meeting had not yet been solved, he pointed out. These included a shortage of staff skilled in procurement, a high rotation of staff between projects, and lack of familiarity of the Mozambican officials with the World Bank's rules and procedures.

Summarising relations with the World Bank since 1984, Cuereneia said that the country had benefited from 64 IDA loans and grants, totalling 3.427 billion US dollars. This included funds for structural adjustment, direct budget support and project aid. Currently 18 projects supported by the World Bank are underway, budgeted at 853 million dollars.

This year, he added, the World Bank will spend about 190 million dollars in Mozambique, including 80 million dollars in direct budget support.

Cuereneia thanked the Bank for offering a grant of 10 million dollars to help Mozambique cope with the current world food crisis. He said the terms of access to this money would be finalized by the end of this year.