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.
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.