As GPOBA explores the use of OBA in less tested sectors, GPOBA is working with Bank teams to analyze the use of OBA in urban transport. In urban transport, there is a need to find a balance between cost recovery fares and socially inclusive solutions for the poor.
Webinar organized by the World Bank's Global Partnership on Output-Based Aid (GPOBA) on the use of results-based financing in the Greater Accra Metropolitan Area sanitation project
Today, 55% of the world’s population lives in urban areas, a proportion that is expected to increase to 68% by 2050. In the face of rapidly rising urbanization, many governments have struggled to keep up with the demand for infrastructure and social services such as electricity, water and sanitation, transport, solid waste management, and health care.
Around the world, poverty is increasingly concentrated in countries and regions affected by fragility and conflict, which intensify already acute challenges to development. Fragility and conflict can range from persistent domestic or cross-border violence to vulnerability in the face of natural disasters.
In an OBA project, service delivery is contracted out to a third party, either a government or private sector entity, who assumes a portion of the project risk by providing pre-financing and then receives a subsidy to complement or replace user fees once outputs (such as solar home systems or connection of households to water supply systems) have been verified by an independent verification age
This report discusses the applicability of output-based aid (OBA) to the urban transport sector in cities of developing and emerging countries, and draws recommendations for the design of OBA-financed projects – and, more broadly, of output-oriented pro-poor projects – that address the issues that typically affect the sector.