57811 The Global Partnership on Output-Based Aid The Global Partnership on Output-Based Aid A NNU A L RE P O RT 2010 1 SUPPORTING THE DELIVERY OF BASIC SERVICES IN DEVELOPING COUNTRIES GPOBA ANNUAL REPORT 2010 © 2010 The Global Partnership on Output-Based Aid World Bank MSN: U3-306 1818 H Street, NW Washington, DC 20433 Website: www.gpoba.org E-mail: gpoba@worldbank.org All rights reserved. This report was produced by the Program Management Unit of the Global Partnership on Output-Based Aid (GPOBA). The findings, interpretations, and conclusions expressed herein do not necessarily reflect the views of GPOBA or the Board of Executive Directors of the World Bank or the governments they represent. Neither GPOBA nor the World Bank guarantees the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of GPOBA or the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Note on the data: All amounts are in US dollars unless otherwise specified. Design: Patricia Hord.Graphik Design Cover photo credits: Main image: Jonathan Davidar Small image, far left: Arne Hoel. All other small images: GPOBA Other photo credits: Pages 2, 4 and 24: Jonathan Davidar Pages 16, 20 and 29: Viet Tuan Tran Page 19: World Bank Page 23: GPOBA Boxes 1, 2 and 4: GPOBA 2 Box 3: Viet Tuan Tran GPOBA ANNUAL REPORT 2010 Table of Contents Message from the Program Manager 2 Overview 4 Role of GPOBA 5 Support from Donors 6 Designing and Implementing Output-Based Aid 6 Funding OBA Pilot Projects 6 Project Results 11 Providing Technical Assistance and Dissemination Funding 14 Facilitating Adoption of OBA Approaches 15 Adoption of OBA Approaches by the World Bank Group 16 Adoption of OBA Approaches by Developing Country Governments 17 Adoption of OBA Approaches by Other Development Partners 18 Identifying Best Practice for OBA, and Disseminating Information and Guidance 19 Monitoring and Evaluating OBA 19 Identifying Lessons Learned 21 Communicating Results 22 Providing Learning Opportunities 24 Sharing Best Practices 27 Looking to the Future 27 Annex 1: Financial Statement 30 Annex 2: GPOBA Portfolio of Signed Grant Agreements as of June 30, 2010 32 Annex 3: GPOBA Core Team 36 BOXES Box 1: Innovative Finance for Small Water Schemes in Kenya 7 Box 2: OBA in the Philippines: Improving Access to Water Services for Poor Households 8 Box 3: Reporting on OBA Using "OBA Data" 20 Box 4: Connecting Colombia's Poor to Natural Gas Services: Lessons Learned from a Completed OBA Project 26 FIGURES Figure 1: GPOBA Portfolio: Share of Funding by IDA, IDA Blend or IBRD Country 9 Figure 2: GPOBA Portfolio: Share of Funding by Region 10 Figure 3: GPOBA Portfolio: Share of Funding by Sector 10 Figure 4: Timing of Disbursements in GPOBA Projects 22 TABLES Table 1: Grant Agreements Signed in FY10 9 Table 2: Portfolio of Projects Involving Subsidies as of June 30, 2010 10 Table 3: Outputs Delivered and Verified as of June 30, 2010 12 Table 4: Disbursements as of June 30, 2010 13 Table 5: Technical Assistance Approved in FY10 14 1 Table 6: Dissemination Activities Approved in FY10 15 GPOBA ANNUAL REPORT 2010 Improved Rural Community Water project in Andhra Pradesh, India. Message from the Cooperation, the Australian Agency for Interna- tional Development, and the Asian Development Program Manager Bank, have begun to adopt OBA in their develop- ment financing. The UK's Department for Interna- This has been another busy year for the Global tional Development is also increasingly focusing Partnership on Output-Based Aid (GPOBA) as we on results-based approaches. continued to encourage greater use of output- based aid (OBA) approaches to improve delivery of basic infrastructure and social services to the Within the World Bank, wider adoption of OBA poor. We were pleased to see that results-based approaches is now in sight. In particular, the devel- financing instruments such as OBA are receiving opment of a results-based lending instrument more attention. Several development agencies, as part of the World Bank's Investment Lending including the United States' Millennium Challenge Reform should facilitate greater use of OBA both 2 GPOBA ANNUAL REPORT 2010 within the World Bank and with other develop- GPOBA's communication and dissemination ment partners. GPOBA's experience with pilot- activities are paying dividends. For instance, ing OBA has provided an important contribution GPOBA contributed a paper on experience with toward the development of this new instrument. OBA to the IDA 15 Mid-Term Review in Novem- ber 2009 and launched a new book, Output- GPOBA has continued to develop its portfolio Based Aid: Lessons Learned and Best Practices, of OBA pilot projects, which now includes 31 with great success. Many partners benefited from schemes for a total of $124.9 million, expected GPOBA's knowledge and learning activities this to benefit around 6.5 million poor people in 23 year, and participated in scoping studies to iden- countries worldwide. This year we signed four tify opportunities for OBA projects. GPOBA also new grant agreements aimed at increasing access developed an OBA training program specifically to essential services. They include two renewable for governments and a new e-learning course energy schemes targeting poor households in on OBA that is available on the GPOBA website Bangladesh, a water supply project for people (www.gpoba.org). living in unserved peri-urban areas of Yemen, and our first education project which will help increase Partners outside the World Bank are taking note of access to secondary education for poor students OBA. For example, a paper on Energy Subsidies, in Vietnam. prepared by the International Energy Agency and other partners for the June 2010 G20 Meeting of OBA pilot projects are yielding results, with Finance Ministers and Central Bank Governors, disbursements totaling $24.1 million and veri- mentions OBA as a key policy tool to address dis- fied outputs benefiting nearly 755,000 people. A tributional issues. The Organisation for Economic project in India closed this year, having installed Co-operation and Development has also included safe community water schemes for 25 villages and OBA in a recent publication on contracting out reached over 77,800 beneficiaries. The project services in fragile states. included a grassroots health education campaign which helped convince people of the benefits GPOBA would not be able to achieve these results of clean water. Provision of clean drinking water without the support of our donors. Sincere thanks in some local schools boosted attendance and to all of them, and especially to the Finance, raised awareness of health and hygiene issues Economics, and Urban Development Department among children. of the World Bank which hosts GPOBA's Program Management Unit. GPOBA is increasingly developing into a Center of Expertise, with GPOBA staff providing expert The views expressed in this report represent advice to governments and World Bank teams those of the GPOBA Program Management Unit on how to structure results-based financing, and should not be attributed to any one of the including OBA components within an operation. GPOBA partners. For example, GPOBA worked with the World Bank's Indonesia country team on an operation that makes fiscal transfers to local governments more results-based, an initiative that was well received by the government of Indonesia. In May, donors approved an expansion of GPOBA's mandate which will give GPOBA an opportunity Patricia Veevers-Carter to design results-based financing operations Program Manager taking into account the lessons learned from the September 2010 OBA pilots. 3 GPOBA ANNUAL REPORT 2010 Community discussion about access to clean water, Andhra Pradesh, India. Overview challenge: Only 60 percent of Africans have access to safe drinking water and less than 30 percent The global economic crisis has slowed the pace have access to electricity. of poverty reduction in developing countries and is hampering progress toward the Millennium Donors and development partners increasingly see Development Goals. The World Bank estimates, results-based financing (RBF) approaches as a way for instance, that in 2015 some 100 million more to ensure that the available aid is well spent. These people may remain without access to safe drinking mechanisms are designed to enhance access to water due to the crisis. The progress that has been and delivery of infrastructure and social services made on reaching the MDG targets for access through the use of performance-based incentives, to basic services is in peril. Sub-Saharan Africa, rewards, or subsidies. Funding is conditional on with its high poverty rates, presents the greatest the recipient undertaking a set of pre-determined 4 GPOBA ANNUAL REPORT 2010 actions or achieving a pre-agreed performance targeted to the poor, for example by focusing on or outputs. Resources are disbursed not against areas in which poor people live. individual expenditures or contracts on the input side, but against demonstrated and independently OBA has demonstrated several advantages com- verified results that are within the control of the pared to traditional approaches to contracting. recipient. RBF is an umbrella term that covers a For instance, OBA can help target subsidies more variety of programs in many countries. Examples efficiently to the poor, mobilize the private sector include performance-based financing for health, to serve low-income households, and facilitate cash on delivery, and conditional cash transfers. monitoring for results. Based on the experiences so far, a good case exists for wider adoption of Among the RBF mechanisms, output-based OBA as a tool to improve pro-poor access to aid (OBA) is an approach that has been tested basic services.2 through pilot projects in selected sectors and is showing results. World Bank funding for OBA has Role of GPOBA grown considerably since the time of the offi- The Global Partnership on Output-Based Aid cial launch of OBA in 2002-03, from 32 projects (GPOBA) is a World Bank-administered program identified with $1.5 billion in funding to about 130 created in 2003 by the UK's Department for Inter- projects with nearly $4 billion in funding. These national Development (DFID) and the World Bank. projects are expected to reach at least 94 million GPOBA was originally intended to help assist in beneficiaries worldwide.1 OBA approaches are preparing OBA projects and to document and being regularly incorporated in project design in disseminate the lessons learned. In 2005, through the information and communication technology an additional DFID contribution, GPOBA became (ICT) and roads sectors in many parts of the world, able to fund actual subsidy schemes. These funds and they are widely used in the health and off-grid galvanized the development of more than 40 energy sectors. OBA is also being piloted in the projects, which are mostly being implemented or water and sanitation, education, and grid-based awaiting imminent agreements for grants. New energy sectors. donors have since joined the program, including the Australian Agency for International Develop- Unlike traditional approaches, OBA links the pay- ment (AusAID), the Dutch Ministry of Foreign ment of aid to the delivery of specific services or Affairs (DGIS), the International Finance Corpora- "outputs." These can include, for example, con- tion (IFC), and the Swedish International Develop- nection of poor households to electricity grids or ment Cooperation Agency (Sida). water supply systems, installation of solar heating systems, or delivery of basic healthcare services. GPOBA has to some extent focused on design- Under an OBA scheme, service delivery is con- ing and developing OBA schemes in areas tracted out to a third party, usually a private firm, where OBA has been less tested, for example, which receives a subsidy to complement or replace in IDA countries and, in particular, the water and the user fees. The service provider is responsible sanitation sector. Although OBA was originally for "pre-financing" the project until output delivery. envisioned as a tool to enhance private sector The subsidy is performance-based, meaning that participation, GPOBA has attempted to pilot OBA most of it is paid only after the services or outputs with commercially viable state-owned enterprises have been delivered and verified by an indepen- in sectors where public utilities have continued to dent verification agent. The subsidy is explicitly play a dominant role in service provision. In some 1 The figures for World Bank funding for OBA are taken from 2 For a comprehensive review of experiences with OBA, see GPOBA's live database, "OBA Data," and are accurate as of Mumssen, Yogita, Lars Johannes and Geeta Kumar. 2010. September 15, 2010. Output-Based Aid: Lessons Learned and Best Practices. Washington, DC: World Bank. 5 GPOBA ANNUAL REPORT 2010 schemes, nongovernmental organizations are the African, Caribbean and Pacific countries. GPOBA service providers. received significant additional funding in fiscal year 2010. DFID contributed an additional $19.2 million Following a positive mid-term review in 2007, (received in installments between November 2009 GPOBA adopted a Vision Statement setting out and May 2010) and Sida contributed an additional the goals of the program for the period 2008-13. $8.9 million in December 2009 (see annex 1). At The vision is that, by 2012-13, OBA will be a well- their annual Program Council Meeting in Berne, tested results-based instrument regularly incorpo- Switzerland in May 2010, the donors agreed that rated in project design to support the sustainable GPOBA should allocate a portion of its budget for delivery of basic services to target populations. fiscal years 2011 to 2013 to fund staff and consul- GPOBA will be a recognized Center of Expertise, tant time on how to design results-based financing providing funding for technical assistance and dis- operations taking into account the lessons learned semination only. No more subsidy funding will be from the OBA pilots. available after fiscal year 2013. To achieve this vision, GPOBA has three strategic Designing and Implementing objectives: Output-Based Aid 1. Design and implement OBA to support the sustainable delivery of basic services to the poor ­ through grant funding for OBA GPOBA's grant funding is an essential catalyst pilot projects, technical assistance, and for the design and implementation of OBA dissemination. approaches. This includes funding for OBA pilot projects (subsidy schemes), technical assistance, 2. Facilitate adoption of OBA approaches and dissemination activities. This section reviews by the development partners ­ through funding provided for these activities in fiscal year operational support to the World Bank Group, 2010 and the status of GPOBA's portfolio of proj- developing country governments, and other ects, and presents the main project results over partners. the past 12 months. 3. Identify best practice for OBA, and dissemi- nate information and guidance ­ through Funding OBA Pilot Projects monitoring and evaluation, communications, GPOBA has been providing grant financing for knowledge and learning, and dissemination of OBA subsidy schemes since 2006, with the aim best practices. of building a robust sample of pilot projects from which to draw lessons and develop best practice This report reviews progress towards these goals in output-based approaches. The priority sectors in fiscal year 2010 (July 1, 2009 to June 30, 2010). have been water and sanitation, energy, health, GPOBA's financial statement for fiscal year 2010 is information and communications technology presented in annex 1. A full list of the OBA pilot (ICT), and, to a lesser extent, education. In line projects funded by GPOBA is given in annex 2. with the wishes of its donors, GPOBA is now The GPOBA team is presented in annex 3. exploring possible pilot projects in the irrigation, solid waste, and urban transport sectors. In fiscal Support from Donors year 2010, GPOBA continued to add new pilots Since the creation of GPOBA, the program's to its portfolio, while at the same time devoting donors have provided a total of $242.5 million in more time and resources to supervising and mon- funding (contributions and pledges). This includes itoring schemes that are already underway, and a one-time pledge of $2.2 million in 2009 from the to scaling them up in partnership with govern- 6 European Union through its Water Facility for the ments and donors. GPOBA ANNUAL REPORT 2010 BOX 1 INNOVATIVE FINANCE FOR SMALL WATER SCHEMES IN KENYA Access to rural water supply remains low in Kenya. the agreed "outputs" which include number of In particular, access to piped water has only new connections and average monthly revenue. increased from 9 to 10 percent of rural households Financing for the subprojects varies from $60,000 over the past eight years. Historically, the rural to $200,000. Connection targets also vary, from 50 water sector has lacked funding and the little fund- new connections for a well-established system to ing that is available has tended to focus on water almost 600 for a new system. kiosks for the poorest of the poor or the construc- tion of new piped systems. Funds to improve exist- The original pilot project targeted 21 subprojects, ing systems have been largely absent. representing a total investment of about $2 mil- lion, in the five districts around Nairobi under the In 2004, the Water and Sanitation Program (WSP) jurisdiction of the Athi Water Services Board. The Africa began to work with a local commercial project is expanding to a national scale and will bank specialized in microfinance, K-Rep Bank, target over 165,000 beneficiaries in 55 communi- to explore structures under which a commercial ties, using additional funds from the European financier would be interested in providing loan Union's Water Facility. finance to small community-owned water pro- viders. Two years later, GPOBA reviewed and An example of a successful community water approved a pilot project to be implemented by project under this scheme is the Karweti Water K-Rep Bank and supported by WSP that would Project. The project increased the number of facilitate access to finance for community-based connections by 10 percent, to 715, and boosted water providers by blending output-based subsi- total average monthly revenue by 73 percent, dies and commercial finance. to $5,000. A survey conducted after implemen- tation verified that the use of supplementary Under the scheme, the community provides equity unsafe water sources had ceased because the (20 percent of project cost) and K-Rep finances the project was able to provide adequate water remaining 80 percent through a loan with a maxi- services. Reliability of water service increased mum tenor of five years. The longer tenor of the tremendously, with 87 percent of customers loan is made possible through the output-based receiving water 7 days a week, up from 8 percent subsidy which repays up to half the loan, typi- before the investment. Poor households in the cally after 18 months. It also makes the monthly community have access to a more reliable of sup- repayments more affordable for the community. ply of water to their own households or through The subsidy is released once a subproject achieves water kiosks. 7 GPOBA ANNUAL REPORT 2010 BOX 2 OBA IN THE PHILIPPINES: IMPROVING ACCESS TO WATER SERVICES FOR POOR HOUSEHOLDS The Manila Water Company (MWC) has been The output for the OBA scheme is sustainable responsible for delivery of water supply and access to modern water services, as evidenced by sewerage services in the east zone of the working connections to the MWC network and Metro Manila region since 1997. The company three months of satisfactory service provision. has enjoyed great success in improving services To ensure that MWC has delivered these out- and now serves 5.1 million residents. MWC has puts, the Independent Verification Agent (IVA), also instituted a number of community pro- appointed by Manila Water, must confirm the fol- grams, including the "Water for the Community" lowing four outputs on a representative sample or Tubig Para sa Barangay (TPSB) program. of beneficiary households: Since the launch of TPSB in 1998, more than n installed water meter; 1.5 million urban poor have been given a n 24-hour water supply; regular supply of clean, safe, and affordable n water pressure of at least 5 psi (pounds per drinking water. square inch); n water bill delivered, demonstrating The GPOBA project builds on the successful track consumption/service delivery. record of the TPSB program. It targets small pock- ets of poor households that are located within As of June 30, 2010, the Manila Water OBA proj- larger MWC service areas that are already being ect has delivered 10,462 independently verified served or will be served shortly. Without the outputs, benefiting over 50,000 people. Given the GPOBA subsidy, the total connection charge pay- success of the pilot scheme, GPOBA held discus- able by a household to MWC for a service connec- sions with the National Economic and Develop- tion would be PHP 7,531.73 ($167). This charge, ment Authority (NEDA) on creating a national OBA set for 2007, includes a meter deposit ($23), a Facility for the water sector. GPOBA subsequently guarantee deposit ($600), and a connection fee approved a $225,000 technical assistance grant for ($131). It was clear that poor households could this purpose. In April 2010, NEDA and the Depart- not afford such connection charges, however, ment of Finance of the Philippines organized a community feedback indicated that they could workshop on the OBA Facility in Manila for senior afford to pay the meter deposit and guarantee government officials, stakeholders, and develop- deposit if this could be paid in installments. MWC ment partners. Participants visited the pilot project proposed and is currently offering an installment in Manila and some also visited an OBA water pilot 8 scheme over 36 months. The OBA subsidy, at in Vietnam, to see how OBA is being applied to 2007 prices, was therefore set at $131. rural water operations. GPOBA ANNUAL REPORT 2010 TABLE 1: GRANT AGREEMENTS SIGNED IN FY10 Grant Amount # of people Average subsidy Country Project Name (US$m) benefiting per person (US$m) Bangladesh Rural Electrification and Renewable 7.20 700,000 10.29 Energy Development ­ Solar Home Systems Project Bangladesh Rural Electrification and Renewable Energy 1.10 20,000 55.00 Development ­ Mini Grids Vietnam Vietnam Upper Secondary Education 3.00 7,500 400.00 Enhancement Project Yemen Yemen Water for Urban Centers ­ 5.00 210,000 23.81 Output-Based Service Provision by Private Operators Total 16.30 937,500 17.39 As of June 30, 2010, GPOBA has signed 31 grant percent of funding for GPOBA's portfolio of pilot agreements for a total grant amount of $124.9 mil- projects going to IDA or IDA blend countries (see lion, expected to reach around 6.5 million benefi- figure 1). Eleven of GPOBA's 31 projects are in the ciaries3 (see annex 2). This year GPOBA provided Sub-Saharan Africa region, which has received the a total of $19.9 million in subsidy funding for six highest percentage of funding at 44 percent. The projects. Four new grant agreements were signed rest of the funding is fairly evenly divided between for $16.3 million, expected to benefit around four regions: East Asia and the Pacific (8 proj- 937,500 poor people (see table 1). In Bangladesh, ects), Middle East and North Africa (3 projects), two grants for a total of $8.3 million will subsidize South Asia (5 projects), and Latin America and the the cost of installing solar home systems and Caribbean (3 projects). These regions have each renewable energy mini-grids for around 144,000 received around 12-15 percent of GPOBA funding, poor households in rural areas. In Vietnam, a grant while Europe and Central Asia (with one project) for $3 million will help increase access to second- has received 2 percent (see figure 2). ary education for around 7,500 poor students in eleven provinces. In Yemen, a grant for $5 million will support a scheme to expand access to water FIGURE 1. GPOBA PORTFOLIO: supply for around 210,000 people living in peri- SHARE OF FUNDING BY IDA, IDA urban areas that are not currently served by the BLEND OR IBRD COUNTRY water network. GPOBA also provided additional funding of $1.78 million for the Kenya Microfi- IDA BLEND 8% IBRD 15% nance for Small Water Schemes project (see box 1) and $1.8 million for the Manila Water Supply project in the Philippines (see box 2). IDA With the four new subsidy schemes, GPOBA main- 77% tained its focus on the poorer countries, with 85 3 The Vietnam Service Expansion and Water Loss Reduction proj- ect, for which GPOBA signed a grant agreement in fiscal year 2009, is not counted in this total. It is the first GPOBA project for which a grant has been cancelled, as the connection charge to be subsidized was waived by the Government of Vietnam. 9 FIGURE 2. GPOBA PORTFOLIO: GPOBA ANNUAL REPORT 2010 SHARE OF FUNDING BY REGION LAC ECA 2% 12% FIGURE 1. GPOBA PORTFOLIO: SHARE OF FUNDING BY IDA, IDA BLEND OR IBRD COUNTRY IDA BLEND 8% IBRD 15% TABLE 2: PORTFOLIO OF PROjECTS INVOLVING SUBSIDIES AS OF jUNE 30, 2010 Portfolio Status IDA Projects Subsidy Funding (US$m) People Benefiting 77% Grant Agreement 31 124.89 6,507,246 Committed 1 3.30 76,000 Eligibility 5 30.30 1,110,000 Total 37 158.49 7,693,246 GPOBA is funding OBA pilot projects in five FIGURE 2. GPOBA PORTFOLIO: sectors. Fourteen projects are in the water and SHARE OF FUNDING BY REGION sanitation sector, which accounts for the largest proportion of funding (43 percent). Nine projects LAC ECA 2% are in energy, four are in health, three are in ICT, 12% and one is in education (see figure 3). The projects concern rural, peri-urban, and urban areas, and AFR most provide one-off subsidies i.e. capital sub- SAR 44% 13% sidies for initial access to services. Nevertheless, because in OBA approaches the emphasis is on service delivery and not just physical connections, a portion of the subsidy is usually phased in after verification of a certain number of months of satis- MNA 14% factory service delivery. EAP 15% As shown in table 1, the average subsidy amount for the grant agreements signed in fiscal year 2010 is $4.08 million and the average subsidy per FIGURE 3. GPOBA PORTFOLIO: beneficiary is $17.39. This compares to an aver- SHARE OF FUNDING BY SECTOR age subsidy per beneficiary of $12.12 for grants signed in fiscal year 2009. The difference is due mainly to the average subsidy per beneficiary in TELECOM 4% the education project in Vietnam, which at $400 HEALTH is the highest of any GPOBA project so far (the WATER 18% 43% second highest is the Nigeria pre-paid health scheme, with an average subsidy per beneficiary of $267.34, and the lowest is the Indonesia rural telecommunications project with an average subsidy per beneficiary of $2.46). For the GPOBA portfolio overall, the average subsidy per benefi- ciary is $19.02. W ENERGY 33% EDUCATION 2% Eligibility and Commitment Before a grant agreement can be signed, the proj- ect proposal has to go through an approval pro- cess involving an independent Panel of Experts. The process is in two stages: 10 GPOBA ANNUAL REPORT 2010 1. Eligibility: an initial assessment to ensure that Two GPOBA projects completed their activities the project meets GPOBA's eligibility criteria, this year: which include the country and sector, project n An OBA project in India provided safe sustainability, and the number of poor people drinking water to around 77,880 poor inhabit- expected to receive services, among other ants of the coastal area of Andhra Pradesh considerations.4 through the development of 25 safe commu- nity water schemes. 2. Commitment: a review of the project to deter- mine that it is ready for implementation and that in n In Armenia, an OBA scheme provided new gas its final form it meets the eligibility criteria. and heat supply services to 5,850 poor urban households, benefiting around 23,740 people. In fiscal year 2010, the Panel of Experts approved three new projects for eligibility, in Uganda (rural Altogether, four GPOBA projects have now com- electrification), Kenya (expansion of the electricity pleted their activities, reaching 328,760 beneficia- grid into slum areas), and Vietnam (irrigation). The ries for a total of $9.06 million in grants disbursed. Vietnam project will be the first irrigation project The other two projects to have completed their funded by GPOBA. The Panel of Experts also activities are a natural gas scheme in Colombia and endorsed five new projects for commitment. Grant a telecommunications project in Mongolia. agreements were subsequently signed for the four new subsidy schemes described above: Bangla- To find out more about how OBA schemes are desh energy (two projects), Vietnam education, improving lives, staff from the World Bank's Yerevan and Yemen water. The fifth project is a scheme to office conducted interviews with beneficiaries of expand connection of individual households to the the Armenia gas and heat supply scheme. Arme- sewer network in Colombo, Sri Lanka. nia is a country with long and severe winters, with a cold season of up to 180 days in some areas, Altogether, as of June 30, 2010, there are 37 proj- and heating claims a large share of the household ects involving subsidy funding in GPOBA's portfolio budget for poor families. One pensioner living in a at different stages of the approval and implemen- hostel in a Yerevan suburb said the gas heater she tation process, including one at the commitment received was a long-awaited gift: stage and five at the eligibility stage (see table 2). "I had no heating whatsoever in the past. As Project Results a pensioner I couldn't afford the high cost GPOBA's subsidy schemes are delivering results: of electrical heating ­ the only time I used 18 of the 31 signed projects have delivered veri- it was to cook food or make tea, no more. fied outputs, reaching nearly 755,000 people, up Now I use my gas heater when I need it, from 423,000 a year ago (table 3). In total, GPOBA and it has so far cost me about 4,000 drams projects have disbursed $24.1 million as of June ($10) a month. I am very grateful for this." 30, 2010, of which $19 million against verified out- puts. Advances have been provided to 13 projects, A family of six from the town of Abovyan in the amounting to $5.1 million, which will be disbursed Kotayk region had to get by without heating in by the fiduciary agent based on verified outputs, the winter: or for the hiring of consultants such as the inde- pendent verification agent (see table 4). "We used to use a hand-made heater, which was illegal and dangerous. The exhaust fumes would stay in the house, and you could always 4 A full list of the eligibility criteria can be found in GPOBA's smell gas ­ very bad for the kids. The gas Operating Principles, available at http://www.gpoba.org/ inspectors banned us from using it, and we gpoba/governance. 11 GPOBA ANNUAL REPORT 2010 TABLE 3: OUTPUTS DELIVERED AND VERIFIED AS OF jUNE 30, 2010 Number of Country Project Name Output Description Verified Output beneficiaries Armenia Access to Gas & Heat Households with access to heating 5,847 23,739 Supply for Poor Urban either through individual connec- Households in Armenia tion or through local boiler systems Cameroon Cameroon Water Affermage Household Water Connections 144 864 Contract -- OBA for Coverage Expansion Colombia Natural Gas Distribution for Households with gas connection 34,138 204,828 Low Income Families in the Caribbean Coast Ghana Solar PV Systems to Solar Home Systems and 1,264 7,584 Increase Access to Electricity Solar Lanterns Services in Ghana India Improved Rural Community UV water purification system pro- 25 77,878 Water in Andhra Pradesh viding public access to clean water Kenya Micro-finance for Small Households benefiting from 3,270 19,620 Water Schemes increased access to water supply services Mongolia Mongolia OBA Pilot 1) Public access telephone network 1 public access 22,315 Project of Universal for herder community telephone network Access Strategy 2) Wireless network for soum 2 wireless networks Morocco Morocco Urban Water Households with water and 4,989 24,945 and Sanitation sanitation connection Mozambique Water Private Sector Con- Yard Taps 476 8,568 tracts -- OBA for Coverage Expansion in Mozambique Nepal Biogas Support Programme Biogas plants for rural Nepalese 10,868 76,076 households Nigeria Pre-paid Health Scheme Health Insurance Packages 4,514 4,514 Pilot in Nigeria Philippines Improved Access to Water Individual water service 10,642 50,017 Services in the East Zone of connection, after-the-meter piping Metro Manila Project and 2 faucets, & water closet Senegal Senegal On-Site Sanitation Households benefiting from 1,105 9,945 increased access to new sanitation facilities Uganda Uganda NWSC Public Water Points and Water Yard 2,973 44,595 Taps Uganda Uganda Small Towns Public Water Points and Water Yard 1,345 29,286 Taps Uganda Uganda Reproductive Safe Delivery and STD Vouchers 50,009 80,107 Health Vietnam Vietnam Rural Water Households with piped water 12,399 61,995 (EMW) connections Yemen Yemen Safe Motherhood Safe Delivery Packages 3,950 7,900 Program 12 Total 754,776 GPOBA ANNUAL REPORT 2010 TABLE 4: DISBURSEMENTS AS OF jUNE 30, 2010 (IN US$) Disbursements against verified Total Country Project Name Advances outputs disbursements Armenia Access to Gas & Heat Supply for Poor Urban 3,087,200 3,087,200 Households in Armenia Bolivia Decentralized Electricity for Universal Access 50,000 50,000 Cameroon Cameroon Water Affermage Contract - OBA for 236,143 109,457 345,600 Coverage Expansion Colombia Natural Gas Distribution for Low Income Families in 4,880,380 4,880,380 the Caribbean Coast Ghana Solar PV Systems to Increase Access to Electricity 474,719 140,621 615,340 Services in Ghana Honduras Extension of Water and Sanitation Services in 489,540 489,540 Low Income Areas of Honduras India Improved Rural Community Water in Andhra Pradesh 834,270 834,270 Indonesia Extending Telecommunications in Rural Indonesia 37,050 37,050 Indonesia Expanding Piped Water Supply to Surabaya's 500,000 500,000 Urban Poor Kenya Micro-finance for Small Water Schemes 497,658 392,752 890,410 Mongolia Mongolia OBA Pilot Project of Universal Access 257,335 257,335 Strategy Morocco Morocco Urban Water and Sanitation 2,767,720 2,767,720 Mozambique Mozambique Water Private Sector Contracts ­ 276,080 124,490 400,570 OBA for Coverage Expansion Nepal Biogas Support Programme 1,757,659 1,757,659 Nigeria Pre-paid Health Scheme Pilot in Nigeria 61,344 668,656 730,000 Philippines Improved Access to Water Services in the East Zone 402,940 402,940 of Metro Manila Project Senegal Senegal On-Site Sanitation Project 420,491 979,909 1,400,400 Uganda OBA in Water Supply in Uganda's Small Towns and 1,278,278 545,902 1,824,180 Rural Growth Centers Uganda Reproductive Health Vouchers in Western Uganda 589,693 449,757 1,039,450 Uganda OBA in Kampala ­ Water Connections for the Poor 216,110 274,269 Vietnam Vietnam Rural Water (EMW) 1,369,050 1,369,050 Yemen Yemen Safe Motherhood Program 195,850 195,850 Total 5,106,845 18,984,209 24,091,054 13 GPOBA ANNUAL REPORT 2010 TABLE 5: TECHNICAL ASSISTANCE APPROVED IN FY10 Country Project Amount (US$) Cambodia OBA Emergency Response for Rural Highway Sector 70,500 Cambodia Typhoon Ketsana Emergency Recovery Project Scoping Study (Preliminary Study) 25,000 Ethiopia OBA for Irrigation Scheme 74,525 India Beneficiary Assessment of Improved Rural Community Water in Rural Andhra Pradesh Project 51,000 India Evaluation of Mumbai Slum Electrification Project 220,500 Jordan Water & Wastewater Output-Based Aid Study 113,083 Kenya Electricity Expansion Project 181,000 Kenya Electricity Expansion Project - Impact Evaluation 226,000 Liberia Enhancing Access to Modern Energy Services 320,238 Mali Integrated Solid Waste Management Services 74,200 Morocco OBA Pilots in Rural Water Distribution 75,000 Morocco Feasibility Study on Introducing OBA Approaches in the National Initiative for 165,000 Human Development Nepal Scoping Study of the Opportunities and Feasibility of OBA in the Municipal Solid Waste Sector 70,500 Philippines National OBA Facility 225,000 South Pacific Scoping Study to South Pacific Countries. 74,000 Uganda Uganda Rural Electrification 84,500 Uganda Initiating an OBA Fund in Uganda's Water Sector (Phase 3) 187,000 World OBA Diagnostic Tool 50,000 2,287,046 lived with no heating at all. We are so grateful Providing Technical Assistance and to have received this big assistance. We have Dissemination Funding had gas for space and water heating as well GPOBA approved a total of $2.29 million for as cooking since November 2009, and all technical assistance in fiscal year 2010, more than three together cost us up to 15,000 drams a double the amount approved in fiscal year 2009. month. But what's more important ­ my kids GPOBA aims to use technical assistance increas- don't feel cold anymore."5 ingly to help developing country governments set up OBA facilities from which they will be able to OBA schemes are also proving their effective- fund various projects in a particular sector (in most ness in areas such as shifting performance risk to cases, water and sanitation). This is reflected in service providers and effectively targeting poor GPOBA's technical assistance program this year, populations. More details are in the Identifying with over 55 percent of funds ($1.28 million) going Lessons Learned section. to OBA facilities and activities to scale-up existing OBA programs. The largest grant, for $320,238, will support the preparation of a scheme to expand 5 The full story on the Armenia gas and heat supply scheme is access to modern energy services in Liberia. 14 available at http://www.gpoba.org/gpoba/node/439. GPOBA ANNUAL REPORT 2010 TABLE 6: DISSEMINATION ACTIVITIES APPROVED IN FY10 Country Project Amount (US$) East Asia and Pacific OBA in Sanitation ­ Dissemination 74,604 Morocco Dissemination of Lessons Learned in OBA Pilots 70,000 World OBA Review: Publication and Dissemination 60,000 World Electronic Compendium of OBApproaches 15,000 World OBA Training for PIDG Facilities and DFID 70,000 World Government Training Program 450,000 World Access-to-Finance (A2F) Study 74,500 World Seminar on Financing Water Supply Services for the Poor in Kampala, Uganda 39,000 World GPOBA Perception Survey 42,000 World OBA Training for AFD 22,400 World Study on the Targeting Performance of OBA Access Subsidies 53,500 World OBA Training for EIB 74,000 World OBA Training for AfDB 74,200 World OBA Facility Book ­ Supplementary Application 71,000 World OBA Training for DFID and Sida 110,000 World OBA Working Paper on Climate Change ­ Supplementary Application 74,360 1,374,564 GPOBA also provided $497,500 in technical assis- activities for other development partners (see tance for impact evaluations of two OBA projects table 6). in India (rural water and slum electrification) and one in Kenya (electricity expansion). Another Following sections include further details of $463,725 in technical assistance supported the GPOBA's technical assistance and dissemination design, implementation, and evaluation of indi- activities. vidual OBA projects. These include three schemes in sectors in which GPOBA has not yet conducted pilots: an irrigation scheme in Ethiopia and two Facilitating Adoption of solid waste management projects in Mali and OBA Approaches Nepal (see table 5). The innovative nature of OBA, which marks a GPOBA also significantly increased its funding break with traditional input-based approaches to for dissemination activities this year, with grants contracting, can present a challenge to policy- totaling $1.37 million approved for 16 activities. makers and development partners. GPOBA has The largest amount ($450,000) was for a training developed and implemented a range of activities program on OBA for governments. Other grants to make it easier for the WBG, developing country supported publications, working papers, a percep- governments, and other development partners to tions survey on OBA and GPOBA, and training incorporate OBA in their operations. This section 15 GPOBA ANNUAL REPORT 2010 OBA Practitioners from the Philippines and Vietnam shared lessons directly in the field at the Doung Xuan Clean Water System in Vietnam, April 2010. presents the results of these interventions in fiscal compared to overall activities by IBRD and IDA year 2010. is small. About 2.7 percent of the World Bank project portfolio in the transport, ICT, health, water One cross-cutting initiative has been the develop- and sanitation, energy, and education sectors ment of a diagnostic tool to help policymakers approved between fiscal years 2000 and 2009 used and project managers determine the suitability of an OBA approach. The ICT sector used OBA most OBA in a given context. The tool provides a rating commonly, with 9.1 percent of its portfolio using system for measuring the degree to which the min- OBA, followed by health (7.1 percent) and trans- imum standards are met, while allowing practitio- port (3.6 percent). GPOBA thus has an important ners ample room to exercise judgment and make role to play in encouraging wider use of OBA in informed decisions about the specifics of the OBA the WBG. scheme under consideration. Focus areas include the regulatory and legal environment, institutional A major step forward for GPOBA this year was capacity and arrangements, and financial mechan- participation in the development of a new World ics. The tool will be published in fiscal year 2011. Bank lending instrument designed to support gov- ernment programs and more directly link disburse- Adoption of OBA Approaches ments to results. This instrument, which is linked by the World Bank Group to the institution's ongoing Investment Lending The World Bank (IBRD and IDA) is the biggest Reform, would facilitate scaling-up of OBA in donor to OBA schemes worldwide, with about $4 World Bank operations. GPOBA has also coordi- billion committed to fund subsidies to 93 projects. nated more closely with other results-based financ- However, the percentage of the OBA portfolio ing initiatives in the World Bank, for instance, RBF 16 GPOBA ANNUAL REPORT 2010 in health, and has continued to review World Bank Bangladesh, with anticipated financing of around country assistance strategies to ensure they men- $300 million from IDA and up to $500 million from tion OBA where appropriate. other donors. Adapting existing fiduciary policies (procure- Adoption of OBA by Developing ment, financial management, and disburse- Country Governments ment) is also essential to facilitate adoption of As the OBA pilot projects start to show results, the OBA approach in World Bank operations. GPOBA is shifting its focus from initiating more GPOBA has made progress in this area at pilots to scaling up successful schemes in coor- three levels: dination with developing country governments n OBA projects: GPOBA provided advisory and other donors. This can involve extending a support to World Bank project teams on successful pilot project to other geographical the application of best fiduciary practices areas of a country, or applying the OBA approach for OBA projects. This involved compiling to other sectors, or both. The goal is not simply to reference materials and sample operational extend the approach but also to integrate it within documents used in OBA projects, includ- a country's existing financing mechanisms and thus ing standard bidding documents, capacity to "mainstream" it. A key vehicle for this is the assessments of service providers, risk assess- development of OBA facilities ­ funds that would ments, procurement plans, financial audits, be managed by governments and used to finance and anti-corruption arrangements. GPOBA OBA projects in a given sector. also obtained an exemption from audits for GPOBA-financed projects. This will facilitate GPOBA is currently supporting OBA facilities the use of reports by independent verifica- and scaling-up activities in ten countries: Brazil, tion agents as a main fiduciary reporting Honduras, Indonesia, Jordan, Kenya, Mexico, mechanism under OBA projects. Morocco, the Philippines, Uganda, and Vietnam. These initiatives are mainly in the energy and n Operational policies: GPOBA participated in water and sanitation sectors. For example: the drafting of a guidance note on the scope and requirements for reporting financial n In Indonesia, GPOBA worked with the World and disbursement information, and auditing Bank's country team on an operation that under OBA projects. The note was issued in makes fiscal transfers to local governments March 2010 and is part of the World Bank's more results-based. The project, which ben- Financial Manual. efits from an IBRD loan of $220 million, aims to increase the accountability of local govern- n Dissemination: GPOBA initiated a series ments in their use of Specific Purpose Grants of meetings with the World Bank's regional from the national budget. These grants will operational departments to discuss fiduciary provide an incentive for local governments to issues and challenges and identify oppor- invest in infrastructure for basic services such tunities for wider use of OBA in World Bank as roads, water and sanitation, and irrigation. operations. n In the Philippines, GPOBA provided a GPOBA is also providing broad learning oppor- $225,000 technical assistance grant to support tunities on OBA to WBG task team leaders to the establishment of a national entity to man- help them understand how they can use OBA in age an OBA facility for the water sector. The their operations (see below). Following one such facility will scale up a successful pilot project training session in fiscal year 2009, a WBG staff that is facilitating access to safe drinking water member in the South Asia Region began working for poor families in Metro Manila to other on the OBA design of a health sector project in parts of the country (see box 2). 17 GPOBA ANNUAL REPORT 2010 n In Uganda, three scaling-up initiatives are development partners began to adopt OBA in under preparation. First, GPOBA is support- their development financing in fiscal year 2010. ing the development of an OBA fund for the For instance: water sector, building on lessons learned from n The United States' Millennium Challenge an OBA pilot project in small towns and rural Corporation (MCC) is working with GPOBA on growth centers. The proposal is for this OBA incorporating OBA in a wastewater connec- fund to come under the government's Water tions project in Jordan. MCC is also consider- and Sanitation Development Facility. Second, ing including OBA in community-based water GPOBA is working with the World Bank, KfW, projects in the Philippines and has developed and the Ministry of Energy on the incorpora- an OBA toolkit for its staff. tion of an OBA mechanism in Uganda's rural electrification fund. Third, the World Bank n AusAID incorporated OBA in an education is preparing a health systems strengthening project in Vietnam, which GPOBA is also project with a results-based approach, which supporting. could potentially scale up a GPOBA-funded n The Asian Development Bank and GPOBA reproductive health vouchers scheme. are looking at how to incorporate an OBA approach in a rural health scheme in Papua As part of its support for these activities, GPOBA New Guinea and in renewable energy proj- designed and delivered training on OBA to the ects in Lao People's Democratic Republic Philippine and Ugandan governments this year. and Vietnam. The Philippines training was led by the National Economic and Development Authority and the GPOBA is working to encourage greater partici- Department of Finance, with assistance from the pation of its donors in the design, implementa- World Bank country office. A study tour to the tion, and scaling-up of OBA approaches. For Vietnam rural water project immediately followed instance, GPOBA organized a visit to the Vietnam the workshop, and gave government officials and rural water supply project for DFID and AusAID donors from the Philippines a chance to see how in November 2009. AusAID is now funding the OBA can be applied in a rural setting. scale-up of this project, with a view to mainstream- ing the OBA approach within the government's Adoption of OBA by Other national target program for rural water supply, and Development Partners DFID is funding a dissemination activity for water Several donors are playing an active role in service providers and government officials of prov- OBA schemes. The German development bank inces not yet reached by the project. KfW is supporting OBA projects in the health and renewable energy sectors in countries In spring 2010, GPOBA and AusAID carried out a such as Bangladesh, Nepal, Senegal, and joint scoping study in the South Pacific (Samoa, Uganda. DGIS is supporting OBA through the Tonga, Vanuatu, Solomon Islands, and Papua Energizing Development program, implemented New Guinea) to present the OBA approach to by the German Agency for Technical Coopera- development partners there and identify oppor- tion in the energy sector. The Global Environ- tunities for projects. GPOBA also assisted the ment Facility is supporting a household energy Private Infrastructure Development Group (PIDG) and universal access project in Mali and a solar with the screening of several OBA projects that home systems scheme in the Philippines, will be managed by the PIDG's technical assis- among others. tance facility. After participating in GPOBA's knowledge In addition to facilitating the use of OBA by other and learning program on OBA, various other development partners, GPOBA collaborated more 18 GPOBA ANNUAL REPORT 2010 closely this year with other results-based financing initiatives. For instance, GPOBA staff met with staff of the Center for Global Development (CGDev) to share experiences with OBA in the water sector and contribute to reflection on the potential use of CGDev's cash on delivery approach in this sector. Identifying Best Practice for OBA, and Disseminating Information and Guidance When GPOBA was first set up, in 2003, its primary mandate was to identify and document OBA projects, and to disseminate best practice and lessons learned in OBA to the wider develop- ment community. This role has become even more important with GPOBA's transition into a Center of Expertise, and now comprises the following activi- ties: monitoring and evaluating OBA, identifying lessons learned, communicating results, providing learning opportunities, and sharing best practices. The results of these activities in fiscal year 2010 are outlined below. A core team of 17 full-time staff, including 13 GPOBA staff and 4 staff based in the World Bank's Finance, Economics, and Urban Development Department who work regularly on This year GPOBA also developed the first com- OBA, is dedicated to implementing this program prehensive online database of OBA schemes. successfully (see annex 3). "OBA Data" will enable practitioners, researchers, policymakers, and others to access data about Monitoring and Evaluating OBA virtually all the projects worldwide that adopt an GPOBA significantly improved the knowledge OBA approach. While conceived as an indepen- base on OBA this year through its monitoring and dent tool, OBA Data will be linked to the exist- evaluation (M&E) function, which tracks the OBA ing GPOBA website for ease of access. This new universe: GPOBA projects, WBG projects, and database is already allowing GPOBA to perform projects funded by other development partners. a more detailed analysis of its pilot projects than Building on the review of OBA undertaken jointly was previously possible (see box 3). A public web with the WBG's IDA/IFC Secretariat in fiscal year interface offering standard data reports as well as 2009, GPOBA delivered an IDA 15 Mid-Term customizable queries on the identified portfolio of Review paper on OBA that was presented to the OBA projects will be launched in phases in fiscal IDA 15 deputies in November 2009, and published year 2011. a new book, Output-Based Aid: Lessons Learned and Best Practices. Both products describe the As part of its efforts to enhance the available portfolio of OBA projects that has been identified evidence on the effectiveness of OBA approaches, and analyze the effectiveness of OBA and practical GPOBA is implementing rigorous impact evalu- lessons and challenges so far. ations of some OBA pilot projects. Two impact 19 GPOBA ANNUAL REPORT 2010 BOX 3 REPORTING ON OBA USING "OBA DATA" To facilitate and improve reporting on OBA sector use an incumbent provider, followed by schemes around the world, GPOBA has devel- those that employ competitive bidding. oped a comprehensive online database, "OBA Data." This new tool offers numerous advantages, n Disbursement trigger schemes: The sector's including consistent entry for all OBA projects, risk transfer profile is skewed heavily to the regardless of funding source; links between service provider; there are no advances, and related projects in the database; a harmonized out of 25 projects identified, all but 3 require set of key project dates; and details of contracts, service providers to demonstrate proof of disbursements, funding, outputs, project out- service delivery in order to receive complete comes, and subsidy design. subsidy payments. For example, OBA Data allows the precise iden- n Unit cost composition: Since unit costs are tification of the agreed outputs for each project, linked to distinct outputs and recorded in the both at a macro level (such as electricity connec- same currency, it is possible to calculate the tions, sanitation points or medical treatments) average cost of a household water connection and at a micro level (such as a new household across all 25 projects: $413.66. connection delivered or verification of 3-6 months of satisfactory service). The "macro output" At the micro level, the database offers detailed categories are aligned with the core sector indica- reports linking the number of outputs a project tors for IDA-supported operations, so database has delivered to a specific number of benefi- users can obtain an aggregate picture of outputs ciaries reached. This is done by applying two planned and delivered for both World Bank and context-specific ratios: the number of households GPOBA-funded projects. per output (which varies according to the type of output) and the number of people per household OBA Data can perform many other analyses at (which varies according to project location). These the macro level. For instance, an analysis of 25 reports make it easier to track project progress OBA schemes identified in the and to measure the results of individual OBA water and sanitation sector yields the schemes. following lessons: OBA Data will be made available to the public n Selection process for the service provider: through the GPOBA website (www.gpoba.org) in Most OBA projects in the water and sanitation the course of fiscal year 2011. 20 GPOBA ANNUAL REPORT 2010 evaluations are underway (Uganda Reproductive Shifting Performance Risk Health and Kampala Water) and are currently OBA projects seek to increase accountability by conducting a second round of household sur- transferring performance risk to service provid- veys. Activities approved this year include two ers, paying them only after they have delivered new impact evaluations, one of the Mumbai slum an agreed output. The degree of risk transfer is electrification project and one of an electrification related to the disbursement trigger: project in Kenya, as well as a beneficiary assess- n Payments against delivery of "intermediate" ment study of the Improved Rural Community outputs (such as the completion of a construc- Water in Andhra Pradesh project. tion milestone or of certain upstream equip- ment) transfer a certain degree of risk to the Identifying Lessons Learned service provider. GPOBA's portfolio of pilot projects is generating many lessons on how to design and implement n Payments against delivery of "final" outputs, OBA schemes, and on which environments and such as water or electricity connections, situations are most conducive to the success of transfer a considerable degree of risk to the OBA. The criteria and benchmarks against which service provider. GPOBA analyzes the portfolio are the same cri- n Payments on service delivery, for example, teria and benchmarks that were postulated when providing water, maintaining off-grid systems OBA was launched in 2002. Given the link between or treating patients, transfer the highest pre-identified outputs and ex post payment, the degree of risk to the service provider. following advantages of OBA over traditional approaches were assumed: The typical disbursement schedule also allows for 1. Increased transparency through the explicit a certain percentage of the subsidy to be dis- targeting of subsidies, tying these subsidies bursed in the form of advance payments (account- to defined outputs ing, on average, for 20 percent of the subsidy). This is intended to mitigate the access-to-finance 2. Increased accountability by shifting perfor- constraints that some service providers encounter. mance risk to service providers by paying them only after they have delivered an An analysis of the GPOBA pilot projects shows agreed output that they are effectively shifting performance risk 3. Increased engagement of private sector to service providers. The 31 projects subsidize 65 capital and expertise by encouraging the individually defined outputs (e.g., water con- private sector to serve customers (usually the nections, school enrollments, medical services), poor) they might otherwise disregard each of which has a schedule of disbursements. As figure 4 shows, the majority of payments are 4. Encouragement of innovation and efficiency made against delivery of outputs and some service by leaving the service "solutions" partly up to delivery ­ the disbursement triggers that transfer the service provider the most risk to service providers. 5. Increased sustainability of public funding Targeting the Poor through the use of one-off subsidies and by Most GPOBA projects use a combination of linking ongoing subsidies to sustainable service geographic, self-selection, and means-testing 6. Enhanced monitoring of results since pay- targeting mechanisms. Self-selection targeting ments are made against agreed outputs includes, for instance, providing subsidies for outputs demanded mainly by the poor (such as The following are examples of lessons that public water points or public access telephone emerged this fiscal year. networks) or paying higher subsidies for more 21 GPOBA ANNUAL REPORT 2010 providers competitively, for example based on the FIGURE 4. TIMING OF DISBURSEMENT minimum subsidy required to reach beneficiaries. IN GPOBA PROJECTS Out of the seven GPOBA projects that are using competitive bidding, two so far have resulted in 96 the selection of a service provider. In those cases 100 100 Payment after some service delivery bidding has resulted in a 20-30 percent reduction PAYMENT ON INTERMEDIATE in unit subsidies compared to initial expectations. 80 Payment on output delivery 80 71 However, in some cases competitive bidding has resulted in significant output delivery Payment on intermediatedelays in project implemen- PAYMENT AFTER SOME OUTPUT DELIVERY 60 60 tation, due mainly to the need to put procurement SERVICE DELIVERY OUTPUT DELIVERY Advance Payment processes in place and to familiarize bidders with 36 40 output-based specifications. 40 PAYMENT ON ADVANCE PAYMENT 20 20 Other project designs that harness competitive forces are projects that select sub-projects to be 11 0 implemented based on a ranking methodology 0 and projects that work with multiple small-scale providers in the same market competing for beneficiaries. The former is used in three projects pro-poor outputs (such as smaller solar home sys- providing water to poor communities and the lat- tems). Some GPOBA projects have reported issues ter in eight projects in education, health, and off- with targeting. For instance, a safe motherhood grid energy. In the 13 remaining GPOBA projects, project in Yemen was unable to identify a sufficient the service provider is an incumbent utility com- number of potential poor beneficiaries in the areas pany. Cost-effectiveness in such cases is ensured initially targeted. As a result, the project partners through accurate identification of unit costs during decided to expand the target areas to include the design phase. additional poor populations. In a project to extend water services to the poor in Honduras, the pov- Beyond competitive bidding, OBA fosters effi- erty targeting criteria initially proposed proved too ciency, quality, and innovation by reimbursing the strict and were subsequently redefined. cost of delivering an appropriately defined and verified output, while leaving the service provider Mobilizing Financing at liberty to achieve the outputs and mobilize The OBA pilot projects continued to mobilize demand. For instance, the implementing agency for almost 2.04 dollars from other sources for every a reproductive health voucher scheme in Western dollar in GPOBA funding in fiscal year 2010. For Uganda chose to introduce an SMS-based commu- the 31 projects currently signed for a total GPOBA nications system that allows cheap and timely com- grant funding of $124.9 million, an additional munication with service providers in remote areas. $251.2 million has been mobilized from other sources such as user contributions ($46.4 million), Communicating Results private sector investment ($152.7 million), and GPOBA continued to reach out to the wider co-financing from governments and other donors development community through a range of com- ($52.1 million). munication activities this year. Highlights included improvements in the positioning of OBA, with Providing Incentives for Efficiency, Quality, the output-based approach highlighted by World and Innovation Bank Managing Director Ngozi Okonjo-Iweala OBA continues to harness competitive forces for during a 2010 Spring Meetings side-event on efficiency gains, most directly by selecting service sanitation and water. A launch event for the book 22 GPOBA ANNUAL REPORT 2010 Output-Based Aid: Lessons Learned and Best populations, ensuring that services are actually Practices was a great success, with an audience delivered to the end user, and providing services of more than 100 people. The panel included in an efficient and cost-effective manner. Respon- Nigel Twose, Director of the IDA/IFC Secretariat, dents also highlighted some challenges, such as co-author Yogita Mumssen, Patricia Veevers-Carter initial resistance of key stakeholders and benefi- (GPOBA Program Manager), Vijay Jagannathan ciaries to the OBA model, and indicated that they (Sector Director for Energy in the World Bank's would like more communications support and East Asia and Pacific Region), and Ruben Reinoso technical assistance from GPOBA. from the National Economic Development Author- ity of the Philippines. Sharing the human impact of OBA schemes through feature stories and multimedia contin- To better understand attitudes towards OBA, ued to be an important activity this year. GPOBA GPOBA commissioned its first perceptions survey, produced its second documentary film, on the targeting staff of multilateral and bilateral agen- Kenya Microfinance for Small Water Schemes cies, the private sector, government agencies, and project (see box 1), in collaboration with the Water non-governmental organizations. Respondents to and Sanitation Program (WSP) Africa and PPIAF. the survey expressed generally favorable attitudes The film, in French and English, explains how this towards OBA as a concept and appreciation of project is increasing access to clean and reliable GPOBA's Center of Expertise activities. Qualitative water supply for rural communities in Kenya, using interviews helped to highlight some of the advan- a blend of commercial finance and an output- tages that practitioners see in the OBA approach, based subsidy. It was shown for the first time at the such as emphasizing poor and underserved African International Water Congress in Kampala, Reproductive Health project, Western Uganda 23 GPOBA ANNUAL REPORT 2010 the GPOBA site. GPOBA continued to dissemi- nate the latest news on OBA through its quar- terly electronic newsletter, "OBA Connections," and began to explore social media as a tool to extend its outreach to audiences around the world. GPOBA developed a presence on Face- book and Twitter, and for the launch of the OBA book, blogged on the report's main findings. OBA approaches were highlighted in various development publications this year. The Africa Energy Forum published an article on "OBA in the Energy Sector" based on the findings of the OBA review. La Lettre du programme Solidarité Eau (pS-Eau), a French-language newsletter for water sector professionals, published an article on the Morocco OBA water pilots based on the French translation of the related OBApproaches paper. GPOBA has developed a broader partner- ship with pS-Eau (see below). GPOBA staff also drafted an annex on OBA for a new OECD hand- book on Contracting out Government Functions and Services in Fragile Situations. Providing Learning Opportunities GPOBA began developing a full program of knowledge and learning (K&L) activities in 2008, with the aim of building awareness of OBA among high-level contacts and providing prac- tical knowledge of tools and options for OBA design to practitioners. The value of this program became clear this fiscal year, as several organiza- Improved Rural Community Water project tions that had participated in OBA training in in Andhra Pradesh, India. 2008-2009 began adopting OBA as part of their funding mechanisms. during a seminar organized by GPOBA on OBA in GPOBA has continued to expand its K&L pro- the water sector. gram and to develop new activities. This year saw several "firsts," including a new e-learning course GPOBA took advantage of its new website, on OBA, training workshops for regional develop- launched in May 2009, to publish more than 32 ment banks, and training on the fiduciary aspects news items during the year and to introduce of OBA. This section reports on the results by type new features such as sections for documents in of activity: awareness building (participation in French and Spanish. GPOBA also benefited from conferences, meetings, and events), broad learn- more frequent promotion of its content on the ing (training workshops and OBA components in World Bank's sustainable development website. other training programs), and reinforced learning The result was an increase in all areas of usage of (online resources and e-learning). 24 GPOBA ANNUAL REPORT 2010 Awareness Building the workshops were very positive and the sessions GPOBA reached a wide range of policymakers and led to plans for further cooperation on OBA, for high-level contacts through its awareness-building instance with KfW and PIDG. The workshop for activities this year. Within the WBG, an important AFD, which included staff from the water, energy, activity was an internal "roadshow" to share the health, and forestry sectors, generated a thought- findings of the OBA review with regional manage- ful discussion of how OBA could fit within the ment teams. GPOBA also took part in World Bank context of French development assistance. At the events such as Innovation Days and the Fiduciary training for the ADB in Manila, GPOBA was able Forum, and organized tailored information ses- to share project documents which the participants sions for staff in the South Asia Region. Outside the found useful in taking forward the design of OBA WBG, GPOBA participated in conferences such as components in water, energy, and health projects. the Africa Energy Forum in Bordeaux, a meeting on Advanced Market Commitments for Low Carbon At the request of its donors, GPOBA began Technology at Chatham House in London, the moving towards offering more workshops for the African International Water Congress in Kampala, development partners in countries where there and meetings on OBA with the Alliance for Rural are OBA pilot projects. For instance, a one-day Electrification and the Aga Khan Foundation. workshop in Kenya in June 2010 involved the Government of Kenya, K-Rep Bank, and the Athi Broad Learning Water Services Board (all partners in the Kenya GPOBA continued to deliver OBA training Microfinance for Small Water Schemes project), as workshops in fiscal year 2010, building on the well as local DFID, IFC, and World Bank staff. Vari- successful workshops piloted in fiscal year 2009. ous other workshops held this year involved local Within the WBG, a two-day OBA workshop has partners, for instance, country-based representa- been institutionalized and is offered to project tives of the African Development Bank, DGIS, and managers several times a year in Washington, the European Union all attended the OBA training DC. GPOBA also delivered in-country training workshop for World Bank staff in Uganda. to World Bank staff in Indonesia, Uganda, and Vietnam. In Indonesia, for example, the train- Reinforced Learning ing session focused on fiduciary issues in OBA GPOBA developed the first e-learning course on schemes and provided an opportunity to discuss OBA this year, with support from the World Bank's the experience of the GPOBA-funded water sup- Learning Board. The course has five modules: ply projects in Jakarta and Surabaya. In addition, GPOBA secured inclusion of OBA information in n Module 1 introduces OBA and the core con- the World Bank's "Fundamentals of Bank Opera- cepts that underpin it, and sets the context for tions" training program, which is designed to help its use. WBG staff master core development concepts n Module 2 introduces the design elements for and frameworks. structuring an OBA project. Many other development partners benefited n Module 3 focuses on the roles of the project from OBA training workshops offered by GPOBA participants and project risk identification this year. These included the Asian Development and mitigation. Bank (ADB) and the Inter-American Development n Module 4 focuses on implementation and Bank (IADB); two GPOBA donors, DFID and Sida; monitoring of OBA projects. and other donor agencies, including the Agence française de développement (AFD), KfW, MCC, n Module 5 is geared toward WBG staff and PIDG, and Switzerland's State Secretariat for Eco- provides a framework for addressing fiduciary nomic Affairs (SECO). Participant evaluations of issues in OBA projects. 25 GPOBA ANNUAL REPORT 2010 BOX 4 CONNECTING COLOMBIA'S POOR TO NATURAL GAS SERVICES: LESSONS LEARNED FROM A COMPLETED OBA PROjECT From June 2006 to November 2008, GPOBA connections were made (34,138 out of a pro- entered into an arrangement with Fundación jected 35,000). Furthermore, an independent Promigas--the charitable foundation of Promigas, study undertaken by the Health Economics the owner of a number of Colombian gas trans- Group of the University of Cartagena and the mission and distribution companies--to encour- Universidad del Norte found that before natural age very poor communities in the coastal areas of gas connections and stoves were installed, 40 Colombia to use natural gas as a fuel for cooking, percent of households suffered from respiratory heating, and other applications. At the center of problems. After installation, the frequency of GPOBA's program was the provision of a partial households reporting a household member subsidy to reduce the burden of paying for a new hospitalized due to respiratory illness fell by 75 gas connection. Connection fees often amount to percent. In addition, the amount of firewood more than twice a poor family's annual income. used in the project's target area was reduced, In contrast, monthly natural gas services are rela- preserving up to 34 hectares of forest or man- tively affordable, especially when considering the grove swamp land. money saved from not purchasing other fuels. A key lesson learned from the project is the Under the program, Fundación Promigas was need for a system to protect against exchange responsible for making new service connections rate variations. The Grant Agreement speci- to poor households. GPOBA's grant of $141 for fied the unit subsidy amount to be payable in each eligible household covered approximately Colombian pesos. During the period of proj- 38 percent of new connection costs, which ect implementation, the value of the dollar totaled $370. Regional distribution companies depreciated against the Colombian peso. Thus, provided additional assistance through customer the actual subsidy payable to the distribution financing plans over six years for the remaining companies was reduced significantly and the dif- cost per connection ($229). The main project ference was effectively paid by the distribution measurable output consisted of installing natural companies. This experience shows the need for gas connections for about 35,000 households, structuring a mechanism whereby foreign expo- providing such households with basic gas stoves sure risk is not placed on the project implement- and ongoing service. ers. In some instances, the financial strength of a project implemented may not be sufficient to Overall, the GPOBA program was successfully absorb such increase in cost and may put the completed, as 98 percent of the total expected project at risk. 26 GPOBA ANNUAL REPORT 2010 The interactive course has been tested within the the CoP and members of the network participated WBG and is now available on the GPOBA website. actively in Center of Expertise activities, includ- All participants will obtain a certificate upon suc- ing the development of an OBA diagnostic tool cessfully completing the course. and the testing of the e-learning course on OBA. GPOBA also continued to enhance the Resources Sharing Best Practices for Practitioners section of its website, where CoP GPOBA continued to share best practices and members, training participants, and other prac- lessons learned in OBA through its OBApproaches titioners can find guidance on designing OBA series, with eleven new titles published. Among schemes and fiduciary issues, information on train- these, one paper presents experience with the ing opportunities, and other resources. GPOBA first GPOBA-funded OBA facility, in Honduras. plans to open up the CoP to practitioners outside Another paper reviews lessons learned in the the WBG in fiscal year 2011. Colombia natural gas project, which generated economic savings and reduced medical expenses for beneficiary households (box 4). Several OBAp- Looking to the Future proaches papers were translated into French and one presenting "A Snapshot of the OBA Universe" Fiscal year 2010 has been a fruitful year for GPOBA was also translated into Spanish and Arabic. as OBA gained more recognition within and out- GPOBA also produced an electronic compendium side the WBG. The GPOBA team made progress of OBApproaches papers on a flash drive, so new on facilitating adoption of OBA by development papers can easily be added. To promote relevant partners, and disseminating information and guid- content to French-speaking audiences, GPOBA ance to a wider set of stakeholders. developed a partnership with the Programme Solidarité Eau (pS-Eau), a network of water sector In the coming year, GPOBA will work with the specialists in Europe and Africa. pS-Eau is promot- WBG to design results-based financing opera- ing OBApproaches and other content in French on tions taking into account the lessons learned from its website and in its newsletter. the OBA pilots. The team will also follow closely progress on the development of a results-based Work began on three new OBA working papers lending instrument in the WBG and will seek to this year. The first will take stock of how access-to- develop synergies with other results-based financ- finance constraints have been managed in OBA ing initiatives and programs. schemes and will recommend new approaches, including closer collaboration with the Consulta- Various OBA scaling-up activities are expected to tive Group to Assist the Poorest, IFC, and the come to fruition in fiscal year 2011. GPOBA will World Bank's guarantee program. Another paper monitor progress on OBA facilities carefully and will study the potential use of results-based financ- share emerging lessons with interested policymak- ing to attract increased investment to climate ers and practitioners. A priority will be to work with change mitigation and adaptation. A third paper governments to help them develop and enhance examines the potential role for OBA subsidies in their implementation structures to allow for more sustainable sanitation, drawing on experience with output-based sector approaches. Key partners in OBA in other sectors such as water and energy. these efforts will include ADB, KfW, MCC, PIDG, and GPOBA's donors. GPOBA consolidated the OBA Community of Practice (CoP) this year as a platform for WBG GPOBA will continue to develop its portfolio of project managers to share best practices through subsidy funding in fiscal year 2011, with additional peer-learning, knowledge-sharing, and informal pilots in mature sectors such as water and sanita- networking. GPOBA organized several events for tion, energy, and health, and preparation of pilots 27 GPOBA ANNUAL REPORT 2010 in new sectors such as solid waste and irrigation. makers through the new database; and sharing The bulk of GPOBA subsidy funding will continue more lessons learned and best practices in OBA, to go to IDA countries. for instance, through extension of the OBA Community of Practice to practitioners outside Priorities for the Center of Expertise in the com- the WBG. ing year include rolling out new tools such as the e-learning course and the OBA diagnostic tool; In all these efforts, GPOBA will seek to collabo- expanding the K&L program to include more rate closely with other development partners, in-country training events for governments and to realize the potential of OBA to enhance aid project partners; making data on OBA schemes effectiveness and delivery of basic services in more easily accessible to practitioners and policy developing countries. 28 GPOBA ANNUAL REPORT 2010 Vietnam Rural Water project. ANNEXES 29 ANNEXES Annex 1 Financial Statement GPOBA derives its resources from donor contributions which are channeled through trust funds adminis- tered by the World Bank Group. The World Bank Group recovers a small charge for costs associated with this task. GPOBA's finances are subject to the World Bank Group's annual "single audit" exercise for all trust funds. As part of this exercise, the GPOBA program manager signs a trust fund representation letter attesting to the correctness and completeness of the financial process for all GPOBA trust funds. GPOBA's budget and accounting processes are aligned with the World Bank Group fiscal year, which runs from July to June. Contributions Received As of June 30, 2010, GPOBA's donors have pledged a total of $242.5 million to the program, of which $211.7 million (87 percent) has been received (table A1). In fiscal year 2010, GPOBA received a total of $28.1 million from two donors: DFID and Sida (table A2). Cumulatively, most of the donor contributions received (82 percent) have been allocated to subsidy funding, which includes project preparation and supervision (table A3). TABLE A1: DONOR CONTRIBUTIONS TO ALL GPOBA ACTIVITIES (CUMULATIVE) IN US$M Donor Pledged Received To Be Received DFID 1 107.0 77.1 29.9 IFC 60.5 60.5 0.0 DGIS 28.3 28.3 0.0 AusAID 29.1 29.1 0.0 Sida 15.8 15.8 0.0 EU 2 1.9 0.9 1.0 TOTAL 242.5 211.7 30.8 1 The pledged amount differs slightly from the figure reported in FY09 because amounts are pledged in GBP and then converted to USD at the time of transfer. 2 The EUR pledge and receipt amounts are expressed in USD equivalent as of June 30, 2010 as the holding currency is not in USD. TABLE A2: RECEIPT OF DONOR CONTRIBUTIONS (CUMULATIVE) IN US$M Donor FY04 1 FY05 FY06 FY07 FY08 FY09 FY10 Total DFID 2.5 3.4 6.8 21.7 13.3 10.2 19.2 77.1 IFC 35.0 25.5 0.0 60.5 DGIS 11.0 8.0 9.3 0.0 28.3 AusAID 0.3 4.2 24.6 29.1 Sida 6.9 8.9 15.8 EU 2 0.9 0.9 TOTAL 2.5 3.4 41.8 33.0 57.9 45.0 28.1 211.7 1 The FY04 total contribution of $2.5 million includes $1.1 million for FY03 and $1.4 million for FY04. 2 The FY09 EUR contribution is expressed in USD equivalent as of June 30, 2010, as the holding currency is not USD. 30 GPOBA ANNUAL REPORT 2010 TABLE A3: DONOR CONTRIBUTION PER FUNDING WINDOW (CUMULATIVE) IN US$M Technical Assistance & Dissemination 1 Subsidy Funding Admin/ Fees Total 28.5 199.9 14.1 242.5 1 The total for technical assistance and dissemination differs slightly from the figure reported in FY09 due to currency fluctuations in DFID's outstanding contribution. Subsidy Funding In fiscal year 2010, GPOBA signed four new grant agreements for subsidy funding and approved addi- tional funding for two existing projects with funding totaling $19.9 million. This is less than in fiscal year 2009 when the total was $33.0 million, reflecting GPOBA's increasing focus on technical assistance and dissemination activities rather than subsidy funding. Three donors provided the new subsidy funding: AusAID, DFID, and the European Union 1 (table A4). GPOBA Actual Program Expenditures GPOBA's actual program expenditures totaled $5.4 million in fiscal year 2010, up from $4.1 million in fiscal year 2009. All areas of expenditure saw increases, reflecting GPOBA's expanded program of activities. The biggest increases were in technical assistance and Center of Expertise expenditures (40 and 27 per- cent respectively). These two areas also continued to represent the largest share of program expenditures (around 62 percent). This trend is likely to continue, given GPOBA's increasing focus on advisory services, dissemination, and knowledge and learning activities (table A5). TABLE A4: GPOBA SUBSIDY FUNDING (GRANTS SIGNED) IN US$M Subsidy Funding Donors FY10 FY09 FY08 FY07 Total DFID 13.3 12.6 8.7 9.4 44.0 IFC 1.8 12.3 13.3 17.7 45.1 DGIS 0.0 0.0 17.4 3.2 20.6 AusAID 3.0 8.6 0.0 0.0 11.6 Sida 0.0 3.8 2.3 0.0 6.1 EU 1.8 0.0 0.0 0.0 1.8 TOTAL 19.9 37.3 41.7 30.3 129.1 Note: At the close of the fiscal year, residuals from closed and cancelled activities under IFC ($0.3 million) and AusAID ($4.3 million) total- ing $4.6 million were rechanneled to finance new requests for subsidy funding. TABLE A5: GPOBA ACTUAL PROGRAM EXPENDITURES IN US$M FY10 FY09 FY08 FY07 Program Management 0.9 0.8 0.8 0.8 Center of Expertise 1.4 1.1 0.3 0.2 Technical Assistance 2.1 1.2 1.4 2.6 Portfolio (Preparation/Supervision) 1.2 1.0 0.8 0.4 TOTAL 5.5 4.1 3.3 4.0 1 The European Union made a one-time pledge of $2.2 million to GPOBA in fiscal year 2009 through its Water Facility for the African, Caribbean and Pacific countries. These funds are being used to scale up the Kenya Micro-finance for Small Water Schemes project. 31 ANNEXES Annex 2 GPOBA Portfolio of Signed Grant Agreements as of June 30, 2010 Grant # of Average Grant Amount people subsidy per Signing Country Project Name IDA (US$m) benefiting person (US$) Date Description Armenia Access to Gas IDA 3.10 23,739 130.59 04/28/06 This project closed on December & Heat Supply Blend 31, 2009 and successfully improved for Poor Urban access to gas and heating services Households in for 5,847 households, 23,739 people, Armenia in urban multi-apartment buildings Bangladesh Rural IDA 1.10 20,000 55.00 05/12/10 This project aims to help about Electrification 5,000 households, shops, small and and Renewable medium enterprises in rural areas of Energy Develop- Bangladesh to gain access to elec- ment ­ Mini Grid tricity by reducing the capital cost of Project mini-grid systems. The GPOBA grant will mean providers can charge a tariff that is affordable to the con- nected beneficiaries. Bangladesh Rural IDA 7.20 700,000 10.29 05/12/10 The project aims to increase access Electrification to energy services for poor people and Renewable living in rural in Bangladesh by Energy Develop- specifically addressing the issue ment ­ Solar of insufficient capacity on the grid Home Systems through the installation of solar Project home systems (SHS). Over 140,000 rural households are expected to benefit. Bolivia Decentralized IDA 5.18 45,000 115.00 06/26/07 This project will lead to direct con- Electricity for Blend nections and affordable access to Universal Access electricity for at least 7,000 poor Bolivian households and micro- enterprises in remote rural areas of Bolivia, benefiting some 35,000 people. Cambodia Increased Access IDA 2.50 261,000 9.58 12/02/08 The objective of the project is to to Telecommuni- bring basic voice telephony services cations Services to low-income families in rural for Rural Poor in areas of northern and northwestern Cambodia Cambodia. Cameroon Cameroon Water IDA 5.25 240,000 21.88 04/07/08 This project will subsidize the cost of Affermage new connections to piped water for Contract - OBA low- to middle-income households for Coverage currently without access. Expansion Colombia Natural Gas IBRD 5.10 210,000 24.29 05/19/06 This project closed on July 31, 2008 Distribution for and successfully connected 34,138 Low Income families to the natural gas distribu- Families in the tion network along the Colombian Caribbean Coast Caribbean Coast. Ethiopia Ethiopia IDA 8.00 1,142,857 7.00 10/30/08 The OBA scheme will help EEPCo, a Electrification state owned national utility, finance Access Rural the cost of providing access to Expansion Project electricity in rural towns and villages with grid access to poor customers in Ethiopia. 32 GPOBA ANNUAL REPORT 2010 Grant # of Average Grant Amount people subsidy per Signing Country Project Name IDA (US$m) benefiting person (US$) Date Description Ghana Solar PV Systems IDA 4.35 90,000 48.33 10/10/08 The GPOBA grant will provide to Increase Access increased electricity access through to Electricity renewable energy technology for poor households in remote rural regions of Ghana. Honduras Extension of IDA 4.44 90,000 49.33 06/19/07 The objective of this project is to Water and Sanita- develop an output-based facility tion Services in aimed at establishing an efficient and Low Income Areas transparent mechanism for financing of Honduras infrastructure in water and sanitation projects in Honduras. This project is expected to improve access to water and sanitation services to approxi- mately 15,000 households. India Improved Rural IDA 0.85 77,878 10.91 05/16/07 This project closed on December 31, Community Water Blend 2009 and successfully improved the in Andhra Pradesh quality of drinking water for 77,878 poor people living in 25 villages of Andhra Pradesh. India Mumbai Improved IDA 1.65 104,000 15.87 04/27/09 The GPOBA grant will subsidize the Electricity Access Blend cost of electricity connections and to Indian Slum wiring for inhabitants of the Dwellers Project Shivajinagar slum in Mumbai. Indonesia Expanding Piped IBRD 2.41 77,500 31.06 02/12/09 The objective of the OBA scheme is Water Supply to to extend piped water connections Surabaya's Urban to about 15,500 low-income house- Poor Project holds in Surabaya. Indonesia Expansion of IBRD 2.57 55,824 46.09 11/01/07 The aim of this project is to bring Water Services in water services to communities in Low income Areas low-income areas of Jakarta by of Jakarta funding one-off connection subsidies for an estimated 11,630 poor households. Indonesia Extending Tele- IBRD 1.87 758,210 2.46 03/30/09 This project will facilitate access to communications the Internet and associated tele- in Rural Indonesia communications and data services through "community access points" in poor areas. Kenya Micro-finance IDA 2.93 60,000 48.86 12/06/06 The objective of this project is to for Small Water increase access to and efficiency in Schemes water supply services for the poor in rural and peri-urban areas of Kenya through investments in around 21 community water projects. Lesotho Lesotho Health IDA 6.25 500,000 12.50 02/23/09 The GPOBA grant will provide sub- PPP Project sidies for inpatient services at a new 390-bed National Referral Hospital, and outpatient services at three semi-urban filter clinics that have been refurbished. Mongolia Mongolia OBA IDA 0.26 22,315 11.62 05/19/06 The project closed on October Pilot Project of 31, 2008. The scheme provided Universal Access telephony services to herder com- Strategy munities, benefiting around 20,000 herders, and telephony and internet services to around 22,315 residents of Tariat and Chuluut soum centers. Morocco Morocco Urban IBRD 7.00 56,000 125.00 01/29/07 The objective of this project is to Water and provide connection to water and Sanitation sanitation services for about 11,300 low-income beneficiary households in disadvantaged peri-urban and 33 rural neighborhoods of Casablanca, Tangiers, and Meknes. ANNEXES Grant # of Average Grant Amount people subsidy per Signing Country Project Name IDA (US$m) benefiting person (US$) Date Description Mozambique Mozambique IDA 6.00 468,000 12.82 04/03/08 This project aims to provide subsi- Water Private dized water connections for domes- Sector Contracts tic consumers in Maputo, Beira, ­ OBA for Nampula, Quelimane, and Pemba Coverage through the construction of around Expansion 30,000 shared yard taps, expected to benefit up to 468,000 people. Nepal Biogas Support IDA 5.00 261,000 19.16 10/04/07 The aim of this project is to subsidize Programme approximately 37,300 biogas plants for rural Nepalese households to increase access to clean and afford- able energy for cooking and lighting. Nigeria Nigeria Pre-Paid IDA 6.02 22,500 267.34 10/23/08 The OBA scheme will provide Health Scheme affordable pre-paid health insurance Project plans for up to 22,500 beneficiaries (employees and their families) who belong to the Computer and Allied Products Association ("CAPDAN") at the Ikeja IT village in Lagos. Philippines Improved Access IBRD 2.85 96,416 29.56 10/19/07 This project aims to provide afford- to Water Services able piped potable water to poor in the East Zone households in the eastern portion of of Metro Manila the National Capital Region ("NCR") Project and most of the Province of Rizal. Senegal On-Site Sanitation IDA 5.76 135,900 42.41 07/06/07 This subsidy scheme aims to help Project offset the cost of new sanitation facilities for an estimated 15,100 poor households. Uganda OBA in Kampala ­ IDA 2.53 409,000 6.18 02/28/08 This scheme will provide a one-off Water connection subsidy to partially fund Connections the cost of new domestic metered for the Poor connections. The project envisages making about 19,000 new yard tap connections and installing about 800 new public water points over a period of three years. Uganda OBA in Water IDA 3.21 55,511 57.77 02/12/07 This project seeks to increase access Supply in to sustainable water supply services Uganda's Small for the poor living in selected small Towns and Rural towns and rural growth centers. It is Growth Centers expected to provide improved water access to around 55,511 people. Uganda Reproductive IDA 4.30 135,912 31.64 10/23/07 This project will increase women's Health Vouch- access to trained medical profes- ers in Western sionals throughout pregnancy and Uganda will also provide subsidized STD treatment for up to 135,912 poor Ugandans. Vietnam Vietnam Rural IDA 3.00 150,000 20.00 11/30/07 This project aims to bring safe water Water (EMW) services to an estimated 30,000 poor families in rural Vietnam. Vietnam Vietnam Upper IDA 3.00 7,500 400.00 05/21/10 This pilot aims to increase access to Secondary secondary education at semi-public Education and private schools for poor stu- Enhancement dents by using a performance-based Project subsidy to incentivize schools to give poor students access to quality education. Subsidy payments to participating schools will be made on condition of pre-agreed indicators that demonstrate both a student's attendance and educational 34 attainment. GPOBA ANNUAL REPORT 2010 Grant # of Average Grant Amount people subsidy per Signing Country Project Name IDA (US$m) benefiting person (US$) Date Description Yemen Yemen Safe IDA 6.23 80,000 77.90 06/10/08 The objective of the project is to Motherhood provide sustainable maternal health Program services, including up to 40,000 safe child births, to poor women of repro- ductive age (15-49) in Sana'a, Yemen. Yemen Yemen Water for IDA 5.00 210,000 23.81 04/12/10 The project will pilot the provision Urban Centers- of water services to low-income Output-Based households (210,000 poor people) Service through private operators willing to Provision by construct and operate the infrastruc- Private Operators ture for several years. Operators will be required to partly finance the scheme and payments will be tied to the number of connections made. Selection of operators will be made on the basis of the least subsidy required for each connection. Total 124.9 6,566,062 19.02 35 ANNEXES Annex 3 GPOBA Core Team Patricia Veevers-Carter Program Manager Wajiha Ahmed Consultant Zenaida Chavez Resource Management Analyst Daniel Coila Information Specialist Mustafa Hussain Senior Infrastructure Finance Specialist Geeta Kumar Consultant Esther Loening Infrastructure Specialist Cledan Mandri-Perrott Senior Infrastructure Specialist Iain Menzies Senior Infrastructure Specialist Luisa Mimmi Consultant Josses Mugabi Young Professional Yogita Mumssen Senior Infrastructure Economist Inga Murariu Consultant Andreina Nicolosi Consultant Mark Njore Program Assistant Carmen Nonay Senior Infrastructure Specialist Constance Polite Consultant Cathy Russell Communications Officer Jacqueline Sibanda Communications Consultant Mario Suardi Senior Infrastructure Specialist Luis Tineo Senior Infrastructure Specialist Leslie Villegas Infrastructure Specialist 36 GPOBA ANNUAL REPORT 2010 The Global Partnership on Output-Based Aid The Global Partnership on Output-Based Aid W W W. G P O B A . O R G 38 GPOBA ANNUAL REPORT 2010