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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.
Output-based Aid in the Chad: Using Performance-Based Contracts to Improve Roads
Despite Chad's recent debut as an oil exporter, its people rank among the world's poorest. Large parts of the country are left in extreme isolation by the lack of a backbone road network that is passable year-round. To tackle the poor internal integration, the government formulated the National Transport Program in 1999.
Output-Based Aid in Nepal: Expanding Telecommunications Service to Rural Areas
A landlocked country which is covered largely by hills and mountains, Nepal is one of the poorest countries in the world, where many people are isolated and without formal means of communication. Despite recent telecommunication sector reforms, rural areas have not been served.
Estimating the Fiscal Risks and Costs of Output-Based Payments
Output-based payments are an important tool of government policy. Sometimes governments offer “output-based aid” to subsidize services sold to households. Guatemala and Mozambique, for example, subsidize new electricity connections, while Paraguay is piloting a program to subsidize new water connections.Output-Based Aid in Water: Lessons in Implementation from a Pilot in Paraguay
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.
Output-based Aid and Carbon Finance
Carbon finance is an output-based approach to mitigating climate change.
Output-Based Aid in the Philippines: Improving Electricity Supply on Remote Islands
The Philippines has introduced an output-based aid (OBA) subsidy scheme to improve electricity supply on remote islands as a way to enhance living standards in the poor communities there.
Output-Based Aid in Health: The Argentine Maternal-Child Health Insurance Program
To fight infant mortality in the poorest provinces of Argentina, local authorities and the World Bank set up the Maternal-Child Health Insurance Program in 2004.
Output-Based Aid in Bolivia: Balanced Tender Design for Sustainable Energy Access in Difficult Markets
Bolivia is implementing an innovative public-private approach to increase rural electricity access to extremely remote areas via Solar Home Systems (SHS). Novel Medium-term Service Contracts (MSCs) balance the Government’s wish for sustainable service and maximum control with providers’ aim for minimal risk exposure.
Output-based aid in Uganda: Bringing Communication Services to Rural Areas
In 1999, Uganda had achieved a national teledensity (fixed and mobile) of about one telephone per 100 inhabitants, slightly above the average for Sub- Saharan Africa (excluding South Africa). But with most phone lines concentrated in the Kampala area, rural teledensity was far lower. Indeed, only 380 of the 920 subcounties in Uganda were expected to have any kind of telephone service by 2001.