The Programme for Municipal Development in North and North-Central Mozambique (PRODEM) contributes to urban poverty reduction and sustainable development through improvements in municipal governance and service delivery in the 26 municipalities in five provinces in the north and central-north parts of the country (Niassa, Capo Delgado, Nampula, Zambécia and Sofala provinces). The Component forms part of Denmark's Climate Change and Environment Programme in Mozambique. PRODEM is planned to be implemented in two phases: 1st Phase 2015-2017 and 2nd Phase 2018-2019. Four of Mozambique's international development partners (Danida, Sida, Irish Aid and Swiss Development Cooperation) have combined their experience, expertise and resources to support PRODEM. The design of PRODEM includes a Pillar 1, which provides technical assistance and funds for investments in the 26 municipalities, and a Pillar 2, which supports initiatives that work towards an improved national framework for municipal development. 'Spaces of Dialogue' link the two pillars together by providing opportunities for exchange of information on achievements and challenges, and discussions on policies and strategic perspectives that will feed into the emerging national framework for municipal development.

The MTR assessed progress for the first full year of implementation (2016) and the anticipated achievements for 2017. The economic context had changed to the worse compared to the time of inception of PRODEM. The political unrest hampered economic and social activities in conflict stricken regions and reduced the pace and prospect for local government development. The PRODEM area suffers from high-levels of poverty compounded by extreme climate occurrences - the combination of which makes economic recovery very challenging. The delivery mechanisms for PRODEM's interventions had been satisfactorily established and consolidated. The main thematic areas for investments and capacity building were: climate change resilience; solid waste management, increased municipal finance and PFM, and citizens' participation. Experience had been gained by municipalities and the TA team on how to implement the PRODEM projects and conduct risks management. A main issue was concerned with the prospect of extending PRODEM into 2018 and 2019. PRODEM's management has in January 2017 submitted the draft report "Focus 2nd Phase" meant for dialogue with key stakeholders on the way forward. The MTR team recommended a continuation of PRODEM as the programme would provide much needed inputs and uphold some level of economic activity. The Mid-term Review was conducted in accordance with a Theory of Change approach and applied the five OECD/DAC criteria.

The following services were provided:
- Document review;
- Elaboration of Mission Preparation Note;
- Visit to six municipalities and consultation with municipal staff and councillors;
- Visit to two provinces and consultations with with provincial administrative staff;
- Consultations with Danida (lead partner), SDC, Sida and Irish Aid;
- Consultations with Ministry of State Administration and Public Function; Ministry of Economy and Finance; Ministry of Land, Environment and Rural Development; Ministry of Public Works, Housing and Water Resources, National Association of Mozambican Municipalities;
- Consultations with CSOs: Concern Universal and AMOR;
- Discussions with consultant's staff;
- Preparation of debriefing note and conduct of debriefing session;
- Preparation of draft Mid-term Review Report;
- Receipt of comments and preparation of final Mid-term Review Report.