This case study is part of a series to highlight project components that have enabled GPRBA to successfully deploy results-based finance (RBF) approaches for the provision of basic services to low-income communities,with efficiency, transparency and accountability.
This case study is part of a series prepared by the World Bank’s Global Partnership for Results-Based Approaches (GPRBA). The objective is to highlight project components that have enabled GPRBA to successfully deploy Results-Based Finance (RBF) approaches for the provision of basic services to low-income communities, with efficiency, transparency, and accountability.
The COVID-19 pandemic has triggered a global humanitarian crisis, putting both lives and livelihoods at risk. In the initial stages of the pandemic – especially in contexts where the state machinery was caught unawares or lacked capacity, or both, social enterprises (SEs) or socially-driven private enterprises – have been particularly active and have stepped up to provide relief.
This report serves as a tool to project teams working on Results-Based Financing (RBF) projects in the water sector. It provides sector-specific entry points, key questions to consider, and sample objectives and indicators that can be used to consider how RBF can be used to close the gender gap.
In 2009, a pilot project was initiated with support from the World Bank's Water and Sanitation Program (WSP). This pilot aimed to leverage private sector resources and help poor households in rural areas access affordable, high-quality sanitation facilities from local businesses.
Output-based aid (OBA) is helping low-income households in rural Bangladesh access microloans to invest in hygienic sanitation facilities. The OBA grant subsidizes the cost of the facilities, reducing the overall cost for cash-constrained households, and the microloans help them to spread repayment over time.
In Ghana, output-based aid (OBA) was used to improve affordability for households in crowded low-income areas of the Greater Accra Metropolitan Area (GAMA) to invest in improved household toilets. OBA was provided as a subsidy to reduce the upfront cost for toilets and stimulate demand, which in turn made it more attractive for financial institutions to enter this market.
Output-Based Aid - Supporting Infrastructure Delivery through Explicit and Performance-Based Subsidies
Increasing access to basic infrastructure and social services is critical to reducing poverty and achieving the Millennium Development Goals (MDGs). However, increasing access is a challenge because of the gap between what it costs to deliver a desired level of service and what can be funded through user charges.
Paraguay's aguateros—small private water companies— form an important part of the water sector, serving about 9 percent of the total population (or about 17 percent of those with piped water supply). But until recently they operated only in urban areas, where water resources are abundant and they could choose customers based on their ability to pay the full costs of providing service.
Corruption in infrastructure leads to big losses. Estimates of the share of construction spending lost to bribe payments around the world range from 5 percent to more than 20 percent. It is important to reduce the financial cost of corruption by limiting bribe payments. But even more important is to ensure that corruption does not reduce the quantity and quality of infrastructure provision.