82137 2 Annual Report 0 1 3 Supporting the delivery of basic services in developing countries ©2013 The Global Partnership on Output-Based Aid World Bank 1818 H Street, NW Washington, DC 20433 USA Website: www.gpoba.org Online data portal: www.oba-data.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 aceptance of such boundaries. Note on the data: All monetary amounts are in U.S. dollars unless otherwise specified. Design: The Word Express, Inc. Table of Contents Message from the Program Manager ii Acronyms and Abbreviations iv Overview 1 The Role of GPOBA 2 Support from Donors 2 Designing and Implementing OBA Pilot Projects 3 Results Achieved 3 Portfolio Composition 4 Portfolio Performance 6 Results from Fully Implemented Projects 8 Monitoring and Evaluation 9 Lessons Learned 10 Developing New Pilot Projects 11 Development of OBA Facilities 12 Building a Center of Expertise 15 Mainstreaming OBA 15 Knowledge and Learning Program 17 Knowledge Management 17 Communications 20 Looking to the Future 21 Appendix A. Financial Statement 24 Appendix B. GPOBA Portfolio of Signed Grant Agreements 26 Appendix C. GPOBA Team 30 Boxes 1. Project Highlight: Solid Waste Management in Nepal 6 2. Project Highlight: Vietnam Upper Secondary Enhancement 13 3. Lessons from OBA for Leveraging Finance for Clean Energy 18 4. Power from the Sun: An Evaluation of Institutional Effectiveness and Impact of Solar Home Systems in Bangladesh 19 Figures 1.  Disbursements FY07 to FY13 (dollars) 4 2.  Beneficiaries Reached FY07–08 to FY13 4 3.  Share of Funding by Region 8 4.  Share of Funding by Sector 8 Tables 1.  Disbursements as of June 30, 2013 5 2. Project Subsidy per Person 6 3. New Technical Assistance Activities and Knowledge Products Launched in FY13 7 4.  Data from Fully Implemented Projects 9 5.  Center of Expertise Business Lines 16 ii GPOBA ANNUAL REPORT 2013 M e ssag e from the Program Manager Carmen Nonay I t is my pleasure to present the Global The results of FY13 clearly show progress in two Partnership on Output-Based Aid (GPOBA) important areas: increasingly incorporating OBA Annual Report for Fiscal Year 2013 (FY13). throughout infrastructure and social sectors, and This year marks a milestone for GPOBA, continuing the support and confidence of our commemorating 10 years since its founding. Over the Donors. We welcomed additional funding of $26.8 past decade, through a diverse portfolio of 36 projects, million from the Swedish International Development GPOBA is fulfilling its mandate to fund, design, Cooperation Agency (Sida) and $4.1 million from demonstrate, and document output-based aid (OBA) the United Kingdom’s Department for International approaches to improve delivery of basic services to Development (DFID). We disbursed a record $25 the poor in developing countries. To date, GPOBA million in subsidy funding, benefitting more than has provided nearly 5.9 million poor beneficiaries with 2.3 million poor people. Additional highlights access to energy, water, sanitation, telecommunications, of this year include a Grant Agreement with the health, and education. With total funding commitments Government of Nepal to support OBA in solid waste equaling $161.3 million, GPOBA’s portfolio of projects is management, a new sector for GPOBA; approval to expected to reach over 9.7 million people. scale up the successful Reproductive Health Voucher Program in Uganda and the Kenya Microfinance This year has been a period of expansion and renewal for Community-Managed Water Schemes project; for GPOBA. Our program strategy is now focused and the completion of nine projects. GPOBA towards piloting the OBA approach in non-traditional was proactive in supporting OBA/results-based and untested sectors such as solid waste, and improving financing (RBF) related technical assistance (TA) and access to basic infrastructure and social services in new knowledge-dissemination activities, including an frontiers, such as fragile and conflict-affected situations urban transport project in Colombia, solid waste (FCS). As the World Bank Group also moves forward, management in the Comoros, and renewable energy we are well aligned with its strategic development in Nepal. The team also continued dialogue with goals of reducing the percentage of people living other development partners (ODPs) to support the on less than $1.25 a day to 3 percent, and promoting objective of mainstreaming the use of OBA/RBF in shared prosperity by fostering the income growth of the other development endeavors. bottom 40 percent in every country. GPOBA ANNUAL REPORT 2013 iii As a result of this excellent performance, GPOBA Additionally, we strengthened our routine reporting and received World Bank excellence awards for two transparency to donors through the production of Semi- projects. The Lesotho Hospital Public-Private Annual Monitoring Reports (SAMR). Partnership (PPP) project was recognized by the Sustainable Development Network Vice Presidency Unit We would like to thank Ms. Zoubida Allaoua, Director (SDN VPU) for its strength in leveraging partnerships of the World Bank’s Urban Development and Disaster across the World Bank Group. The Lesotho project Risk Management Department, for her continuous was also recognized by the South-South Knowledge commitment and support in guiding GPOBA through Exchange for providing a country-led development this time of renewal. We also want to acknowledge and solution to the challenge of providing high quality, thank our Donors for their vision and financial support, affordable health care services to the poor. The Nepal which enables GPOBA to achieve these successful Biogas Support Program received SDN VPU’s “special results. We look forward to another successful and mention” award for its objective to increase access to productive year, collaborating closely with our clean, affordable energy for cooking and lighting. Donors and partners, and continuing to provide basic infrastructure and social services to the poor. Through continuous monitoring and evaluation, GPOBA is increasingly committed to documenting and gathering evidence on the effectiveness of OBA. We completed an Impact Evaluation for the Bangladesh Solar Home Systems (SHS) project, a project that has provided 2.4 million people in rural Bangladesh with access to renewable energy, and finalized four implementation completion reports (ICRs) on closed Carmen Nonay projects in Morocco, Nepal, Senegal, and Uganda. Program Manager iv GPOBA ANNUAL REPORT 2013 Acronyms and Abbreviations ADB Asian Development Bank IDA International Development Association BA Beneficiary Assessment (World Bank Group) AusAID Australian Agency for International IFC International Finance Corporation Development (World Bank Group) CAS Country Assistance Strategy KM Knowledge Management CoE Center of Expertise M&E Monitoring and Evaluation CoP Community of Practice MCC Millennium Challenge Corporation CPS Country Partnership Strategy OBA Output-Based Aid DFID Department for International Development ODPs Other Development Partners (United Kingdom) PforR Program for Results DGIS Directorate-General for International PoE Panel of Experts Cooperation (the Netherlands) PPIAF Public Private Infrastructure Facility DPWH Department of Public Works and Highways PPP Public Private Partnership EMWF East Meets West Foundation RBF Results-Based Financing ESMAP Energy Sector Management Assistance SAMR Semi-Annual Monitoring Report Program SDN Sustainable Development Network EU European Union SHS Solar Home Systems FCS Fragile and Conflict-Affected Situations Sida Swedish International Development FY13 Fiscal Year 2013 Cooperation Agency GPOBA Global Partnership on Output-Based Aid SWM Solid Waste Management IBRD International Bank for Reconstruction and TA Technical Assistance Development (World Bank Group) WSP Water and Sanitation Program ICR Implementation Completion Report ICT Information and Communication Technology Ov e rvi e w n innovative form of RBF, OBA, is an is paid only after the services or outputs have been A approach designed to increase access to and delivery of basic services to the poor using performance-based incentives, delivered and independently verified. The subsidy is explicitly targeted to benefit the poor, which can be achieved through several means, depending on the rewards, or subsidies. OBA links the payment of aid to context of the project and environment. the delivery of specific services or “outputs.” These can include connection of poor households to electricity OBA approaches have been tested in a variety of grids or water supply systems, installation of SHS, or geographic areas and applied in energy, water and delivery of basic healthcare services, for example. sanitation, health, information and communication Under an OBA scheme, service delivery is contracted technology (ICT), education, and solid waste out to a third party, which receives a subsidy to either management. With a portfolio of 36 projects with complement or replace the user fees. The service over $161 million in subsidy funding and ongoing TA provider is responsible for “pre-financing” the project activities, GPOBA is supporting innovative solutions for until outputs are delivered. The subsidy is performance- development financing, delivering lasting results for or results-based, meaning that most of the subsidy the poor ranging from delivering clean drinking water 2 GPOBA ANNUAL REPORT 2013 In 2008, GPOBA adopted a Vision Statement that set out two main objectives: that OBA, as an approach, become regularly incorporated in the design of infrastructure and social services projects to support the sustainable delivery of basic services to target populations; and that GPOBA become a recognized CoE, building on the knowledge and experience acquired through the design and implementation of OBA approaches. To achieve its Vision, GPOBA is working on three fronts: Designing and implementing OBA pilot projects, 1.  focusing on sectors in which GPOBA has had little or no experience,1 as well as in more tested sectors where governments are interested in mainstreaming, Working with governments to scale up successful 2.  OBA pilots and mainstream the use of OBA approaches into their own development initiatives, and Strengthening GPOBA’s role as a CoE, through 3.  reinforcing critical monitoring and evaluation work, supporting the World Bank’s PforR, as well as results- based approaches with ODPs. This Annual Report reviews progress toward these goals in FY13 (July 1, 2012–June 30, 2013). Appendix A presents GPOBA’s financial statement for FY13. Appendix B provides a full list of OBA pilot projects in informal settlements in the Philippines and India to in the portfolio. Appendix C presents members of the supporting improved solid waste management in low- GPOBA team. income municipalities in Nepal. Support from Donors The Role of GPOBA Since GPOBA was created, the program’s Donors GPOBA is a World Bank-administered program have provided a total of $323.1 million in funding created in 2003 by the United Kingdom’s DFID and (contributions and pledges), of which $313.6 million the World Bank. GPOBA was originally intended to has been received. This includes a one-time pledge of assist in preparing OBA projects and to document $2 million in 2009 from the European Union through its and disseminate lessons learned. Through additional Water Facility for the African, Caribbean, and Pacific donor contributions, GPOBA began funding subsidy countries. Contributions received in FY13 include schemes in 2006, and has since built up a portfolio of $26.8 million from Sida for the scale-up of two projects grant funding in 6 sectors and 24 countries. In addition in Africa, and $4.1 million from DFID to fund Impact to DFID, GPOBA’s Donors now include the Australian Evaluations of health projects in Africa (see appendix A). Agency for International Development (AusAID), the Dutch Directorate-General for International Cooperation (DGIS), the International Finance 1 These less-tested sectors include sanitation, solid waste Corporation (IFC), and the Swedish International management (SWM), urban transport, irrigation and Development Cooperation Agency (Sida). education. Designing and Implementing OBA Pilot Pr o j e c t s POBA’s grant funding is an essential catalyst Results Achieved G for the design and implementation of OBA approaches. This includes funding for OBA pilot projects (subsidy schemes), GPOBA has been developing OBA subsidy schemes since 2006, with the aim of building a robust sample of pilot projects from which to draw lessons and TA, and dissemination activities. This section reviews develop best practices in output-based approaches. project results in FY13, funding activities, and projects These schemes are delivering impressive results as the under development. It also details GPOBA’s work in portfolio matures and grows, and as early pilots begin monitoring and evaluating the performance of its to close. Highlights of the results achieved this year portfolio and developments in building a CoE. follow. 4 GPOBA ANNUAL REPORT 2013 • As of June 30, 2013, the GPOBA portfolio consists • Altogether, the OBA pilot projects have reached of 36 Grant Agreements in 6 sectors in the amount nearly 5.9 million beneficiaries, an increase of nearly of $161.3 million. Nine of these projects closed this 2.6 million (79 percent) compared to the previous year, increasing the number of closed projects with year (see figure 2). valuable lessons learned to 19 (see table 1). • The first Grant Agreement for OBA in SWM was • The GPOBA portfolio disbursed $24.8 million signed this year with the government of Nepal for this year, for a cumulative total of $92.5 million, $4.3 million. This project is expected to improve representing 57 percent of the total value of Grant access to high quality and financially sustainable Agreements signed since GPOBA’s inception. This SWM services for 800,000 people. amount well exceeds GPOBA’s target for the year, • There were 20 new TA activities launched, totaling and is reflective of growing disbursement trends as $2.4 million; 4 of these support GPOBA project the project pipeline matures (see figure 1). preparation in Ghana, Kenya, Uganda, and the West Bank, with 16 stand-alone TA activities (see table 3). FIG 1 GPOBA PORTFOLIO: DISBURSEMENTS Portfolio Composition FY07 TO FY13 (IN US$) GPOBA’s portfolio of pilot projects focuses on poorer countries, with 86 percent of funding going to IDA 100,000,000 or IDA blended countries.2 Fourteen of GPOBA’s 36 90,000,000 projects are located in the Sub-Saharan Africa region, 80,000,000 which has received the highest percentage of funding 70,000,000 at 46 percent, followed by South Asia at 20 percent, 60,000,000 and East Asia at 13 percent. The energy sector receives 50,000,000 the largest share of GPOBA subsidies, with 12 projects 40,000,000 and 42 percent of the project portfolio, followed by 30,000,000 water and sanitation at 37 percent, and health at 20,000,000 15 percent. Details of the distribution of the overall 10,000,000 portfolio are presented in figures 3 and 4. Data on the 0 project subsidy per person are presented in table 2. FY07 FY08 FY09 FY10 FY11 FY12 FY13 TA activities represent another portion of GPOBA’s portfolio, supporting knowledge development and dissemination of OBA approaches, grants to develop OBA pilot projects, and more recently, TA for RBF GPOBA PORTFOLIO: BENEFICIARIES activities, including the World Bank’s PforR. This year, FIG 2 REACHED FY07–08 TO FY13 GPOBA approved $3.1 million of new OBA/RBF-related technical assistance and knowledge-dissemination 7,000,000 activities, for a cumulative total of 57 technical Number of verified beneficiaries assistance grants since the Program’s inception (see 6,000,000 table 3 for details). 5,000,000 4,000,000 3,000,000 2 The International Development Association (IDA) is the World Bank’s fund for the poorest. Countries that lack the 2,000,000 creditworthiness needed to borrow from the International Bank for Reconstruction and Development (IBRD) and 1,000,000 those with a gross national income per capita below $1,175 are eligible for IDA support. Countries that are IDA- 0 eligible based on per capita income levels and are also FY07–08 FY09 FY10 FY11 FY12 FY13 creditworthy for some IBRD borrowings are referred to as “blend” countries. GPOBA ANNUAL REPORT 2013 5 TABLE 1   Disbursements as of June 30, 2013 (in US$)a Grant Cumulative Amount Disbursements Disbursement Country Project Name (dollars) (dollars) (percent)a Project Status Closed Projects Armenia Armenia Gas and Heating 3,100,000 3,087,196 100 Closed Bolivia Rural Electricity Access with Small-Scale Providers 5,175,000 3,656,967 71 Closed in FY13 Colombia Access to Natural Gas 5,085,000 4,880,382 96 Closed Ethiopia Ethiopia Electricity Access Rural Expansion 8,000,000 451,290 6 Closed in FY13 Honduras National OBA Facility for Water and Sanitation Services 4,590,000 4,586,060 100 Closed in FY13 India Improved Rural Community Water in Andhra Pradesh 850,000 834,276 98 Closed India Improved Electricity Access to Indian Slum Dwellers in 1,650,000 150,000 9 Closed in FY13 Mumbai Indonesia Expansion of Water Services in Low-income Areas of 2,573,140 1,743,902 68 Closed in FY13 Jakarta Indonesia Expanding Piped Water Supply to Surabaya’s Urban Poor 2,407,500 1,084,391 45 Closed in FY13 Kenya Microfinance for Community-managed Water Projects 3,087,630 2,641,273 86 Closed in FY13 Lesotho Lesotho New Hospital PPP 6,250,000 6,250,000 100 Closed in FY13 Mongolia Mongolia Universal Access to Telecommunications 259,400 257,335 99 Closed Morocco Improved Access to Water and Sanitation Services 7,000,000 6,999,766 100 Closed Nepal Biogas Support Programme 5,000,000 4,974,979 99 Closed Philippines Improved Access to Water Services in Metro Manila 2,850,000 1,260,683 44 Closed in FY13 Senegal Access to On-Site Sanitation Services 5,764,000 5,099,544 88 Closed Uganda Reproductive Health Vouchers in Western Uganda 4,300,000 4,046,688 94 Closed Uganda Small Towns Water Supply and Rural Growth Centers 3,207,000 2,414,031 75 Closed Vietnam Targeting Service Expansion through Water Loss Reduction 4,500,000 4,499,967 100 Closed Projects Under Implementation Bangladesh Rural Electrification and Renewable Energy Development– 13,950,000 13,102,077 94 Solar Home Systems Implementation Bangladesh Rural Electrification and Renewable Energy Development– 1,100,000 23,551 2 Implementation Mini Grids Cameroon Water Affermage Contract–OBA for Coverage Expansion 5,250,000 1,113,189 21 Implementation Ghana Solar PV Systems to Increase Electricity Access 4,350,000 2,889,553 66 Implementation Indonesia Extending Telecommunications in Rural Indonesia 1,868,340 1,187,706 64 Implementation Kenya Kenya Electricity Expansion 5,150,000 0 0 Implementation Liberia Monrovia Improved Electricity Access 10,000,000 2,785,076 28 Implementation Mozambique Water Private Sector Contracts–OBA for Coverage 5,000,000 3,563,460 71 Implementation Expansion Nepal Municipal Solid Waste Management 4,288,381 0 0 Implementation Nigeria Pre-paid Health Scheme 6,015,160 3,238,444 54 Implementation Philippines Philippines Reproductive Health 3,650,000 198,138 5 Implementation Sri Lanka Increasing Household Access to Domestic Sanitation in 5,080,000 0 0 Implementation Greater Colombo Uganda Kampala Water Connections for the Poor 2,527,100 674,834 27 Implementation Uganda Grid-Based OBA Facility 5,500,000 0 0 Implementation Vietnam Upper Secondary Education Enhancement 3,000,000 2,324,516 77 Implementation Yemen Safe Motherhood Program 3,912,190 2,432,960 62 Implementation Yemen Water for Urban Centers 5,000,000 0 0 Implementation Total 161,289,841 92,452,237 Actual disbursement amounts for closed projects may be higher. All recipient-executed projects have a.  an additional six months to disburse after the project has closed. 6 GPOBA ANNUAL REPORT 2013 Portfolio Performance TABLE 2  Project Subsidy per Person Disbursements for subsidy projects reached a historic Average subsidy per person $ 25.00 high in FY13, with annual disbursements of $24.8 Vietnam Education $400.00 million, bringing cumulative disbursements since the inception of the subsidy program in 2006 to $92.5 Nigeria Health Project $267.00 million. This represents 57 percent of the total value Nepal SWM $5.38 of Grant Agreements signed. A total of nine projects Indonesia Rural Telecommunications $2.46 successfully completed their activities in FY13: Bolivia Note: The average pilot project grant amount for the GPOBA portfolio is $4.49 million. There are also variations within sectors, as the amount Rural Electricity Access with Small-Scale Providers, of the subsidy per person depends on the unit cost of the services being Ethiopia Electricity Access Rural Expansion, Honduras subsidized in each specific situation. BOX 1 Project Highlight: Solid Waste Management in Nepal achievement of pre-agreed technical standards, such as improved waste collection and cleanliness, and improved financial sustainability, as measured by an increase in user fee collections for SWM services. Examples of service improvements include delivering formal SWM services to targeted users, extending services to zones not currently served, and implementing waste minimization measures. The subsidy is transitional in nature, and subsidies will be paid to municipalities to “match” revenues collected from SWM services according to an agreed multiplier. The multiplier varies such that subsidies are increasingly phased out over the four years of the project life and are replaced with user fees. The key assumption here is that the increased service Nepal is one of the poorest countries in the world, quality brought about by the OBA project will increase with a GDP per capita of less than $550. The country consumer willingness to pay for better SWM services, is concurrently undergoing a political transition and and enable municipalities to gradually recover greater significant demographic changes. Most notably, proportions of service delivery costs from new Nepal’s urban population has increased by more consumers and increased user fees. than 67 percent over the past decade. This increase has placed considerable pressure on the urban The project design focuses on the results to be environment and efforts to deliver urban services, achieved, without prescribing any single service including SWM. Where services are available, they tend delivery model to achieve those results. Municipalities to be of poor quality due to chronic underfunding and are provided with the flexibility to deliver services weak institutional capacity, which also leads to a low efficiently and as they see fit, provided that service willingness to pay for urban services. delivery is technically, socially, and environmentally sound; services are financially sustainable; and service In FY13, GPOBA signed a Grant Agreement with the provision remains accountable to beneficiaries and government of Nepal to support improved SWM to national institutions tasked with overseeing the services in five low-income municipalities. This is sector. Provided these conditions are met, delivering GPOBA’s first grant for the SWM sector. The project SWM services is the business of the municipalities. This provides OBA subsidies to eligible municipalities approach is expected to lead to increased innovation that improve SWM services, as evidenced by the in service delivery and to foster local ownership. GPOBA ANNUAL REPORT 2013 7 3 a TABLE New Technical Assistance Activities and Knowledge Products Launched in FY13   Country and Activity Description Grant Amount TA support to PforR activities $266,000 Brazil – Ceará PforR This TA supports the transfer of GPOBA experience to the PfoR lending. The PfoR itself is $50,000 targeted to improve public sector governance of the northeastern province of Ceará. Uruguay – Road This TA supports the transfer of GPOBA experiences to the PforR lending. The PfoR itself is $216,000 Rehabilitation PforR targeted to improve the management of 35 percent of the Uruguay National Road Network. TA support to RBF activities $1,130,052 Colombia – Design of OBA This TA supports the transfer of GPOBA experience to the Programmatic Knowledge Service $340,000 in Urban Transport for improving access of the poor to transport, housing, and other urban services. Comoros – SWM This TA prepares a baseline assessment, analyzing the value chain in solid waste of Moroni $333,200 Municipality, scoping for an OBA or RBF project. Nepal – Household The World Bank/ IFC plan to support PPP opportunities to scale up household access to $225,000 Renewable Energy Access off-grid renewable energy. This TA recommends OBA/RBF instruments for scaling up rural electricity access, and outlines the World Bank Group’s prospects for support on rural off- grid household renewable energy access for the government of Nepal. World – RBF in Water and This TA develops a Water Sector User Guide to RBF that will help to identify RBF $231,852 Climate Change instruments across all water subsectors. Other TA (total includes TA for project preparation in Ghana, Kenya, Uganda, and the West Bank) $1,048,443 Ethiopia – Irrigation & This is a feasibility study for designing an approach to the construction of field channels $190,000 Drainage and land improvements that will facilitate the delivery of irrigation services to farmer beneficiaries in Megech-Seraba and Ribb. Lesotho – Hospital PPP This activity documents the experiences and lessons learned from the closed Lesotho $125,000 Hospital PPP project through an endline study and a case study and multimedia package on best practices and lessons learned. Morocco – Rural Water This TA supports testing the first PPP for water distribution in rural areas, helping to $75,000 OBA determine a future structure of rural water services management. Nigeria – National Urban This TA supports access to sustainable and safe water and improved sanitation to $70,000 Water Sector Reform households in three selected states. Philippines – Manila Water This TA supports the preparation of the Implementation Completion Report (ICR) of the $65,450 Supply ICR Manila Water Project. Philippines – Manila Water This TA supports the preparation of the Beneficiary Assessment of the Manila Water Project. $45,000 Beneficiary Assessment Philippines – OBA This TA supports the Department of Energy in assessing an OBA scheme for solar home $73,891 Facility for Solar Energy systems on a large-scale basis, recommending next steps within the government of the Development Philippines OBA strategy. Uganda – Reproductive This TA develops an Implementation Completion Memorandum for formal submission for $28,790 Health ICM the Reproductive Health Voucher Program in Uganda. Uganda – Reproductive The TA disseminates findings and lessons from the Impact Evaluation for the Reproductive $17,344 Health Impact Evaluation Health Voucher Program in Uganda. Vietnam – Lessons from This TA documents the experience and lessons from the Vietnam Rural Water Supply pilot, $54,750 OBA in Rural Water including a Beneficiary Assessment, policy note on OBA principles on rural water supply, and practitioners’ handbook. OBA Knowledge Products $644,072 Western Africa – In-country This activity consists of two training events at the World Bank country offices in Cotonou $62,210 trainings in Africa and Dakar. These trainings build awareness and operational knowledge of OBA within the external development community. World – GPOBA: The purpose of the evaluation is to independently assess the effectiveness of the GPOBA $38,111 Independent Evaluation program in building a body of knowledge and expertise toward the achievement of its Vision Statement, and provide recommendations for the future. World – OBA for Small- This study will investigate issues related to the financing, structuring, and implementation $300,000 Scale Irrigation of irrigation schemes in developing countries targeted at low-income farmers, and ascertain ways to apply OBA. Continued on next page 8 GPOBA ANNUAL REPORT 2013 3 a TABLE New Technical Assistance Activities and Knowledge Products Launched in FY13   Country and Activity Description Grant Amount World – Scoping OBA in Phase 1 of this study summarizes the experience of OBA in fragile and conflict-affected $175,890 FCS situations (FCS) and proposes recommendations for designing OBA programs. Phase 2 proposes expanded applications for OBA in FCS. World – GPOBA website This activity consists of a redesign of the current GPOBA website to reflect the renewal of $31,061 the program as well as changing Internet technology, focusing on functionality and user interactivity. World – GPOBA This activity consists of rethinking and redesigning the CoP framework and strategically $36,800 Community of Practice repositioning it on the GPOBA website. The OBA CoP serves as the knowledge hub for sharing, peer learning, and collaboration with OBA practitioners, both within and outside the World Bank Group. Total GPOBA TA funding for FY13 $3,088,567 In addition to these activities, GPOBA provided TA to support the preparation of four subsidy projects: OBA Sanitation Fund in Ghana, a.  Kenya Water and Sanitation OBA Fund, Uganda Reproductive Health Voucher Program Scale-Up, and West Bank Solid Waste. National OBA Facility for Water and Sanitation Results from Fully Services, Improved Electricity Access to Slum Implemented Project Dwellers in Mumbai (India), Expanding Piped Water Of the nine projects completed this year, five were in the Supply to Surabaya’s Urban Poor (Indonesia), Jakarta water and sanitation sector, three in energy, and one in Improved Access to Water Services (Indonesia), Kenya health. Water and sanitation remains the largest sector Microfinance for Community-managed Water Projects, represented in GPOBA’s portfolio of fully implemented Lesotho New Hospital PPP, and Improved Access to projects at 49 percent. Energy represents the second Water Services in Metro Manila (the Philippines). This largest sector at 37 percent, followed by health at 14 brings the total number of closed projects in GPOBA’s percent. Sub-Saharan Africa continues to hold the larg- portfolio to 19, providing access to basic services to est share of funding in the closed portfolio at 40 percent, 2.8 million people (table 4). followed by East Asia and the Pacific at 21 percent. SHARE OF FUNDING BY SECTOR FIG 3 SHARE OF FUNDING BY REGION TOTAL: US$161.3 (IN MILLIONS) FIG 4 TOTAL: US$161.3 (IN MILLIONS) 2% 1% 2% 3% 9% 15% 46% 42% 10% 13% 37% 20% Sub-Saharan Africa $74.4m Middle East–North Africa $15.9m Energy $68.1m Solid Waste Mangement $4.3m South Asia $31.9m Latin America–Caribbean $14.9m Water and sanitation $59.7m Education $3.0m East Asia–Pacific $21.1m Europe–Central Asia $3.1m Health $24.1m Telecom $2.1m GPOBA ANNUAL REPORT 2013 9 Monitoring and with World Bank staff and project clients in order to Evaluation jointly find solutions to challenges hindering project Monitoring and evaluation (M&E) of OBA projects is implementation. This was achieved through the an important part of GPOBA’s efforts to document participation of GPOBA staff in supervision missions and gather evidence on the effectiveness of OBA and and meetings to enhance project performance and to capture the differences in performance between monitoring. OBA approaches and other subsidy design choices. With a focus on optimizing project performance, As part of its efforts to enhance the available evidence GPOBA’s portfolio team continued to work closely on the effectiveness of OBA approaches, GPOBA is TABLE 4   Data from Fully Implemented Projects Number of Verified Number of Country Project Name Output Description Outputs Beneficiariesa Armenia Armenia Gas and Heating Households with access to heating either through 5,847 23,739 an individual connection or local boiler system. Bolivia Rural Electricity Access with Solar Home Systems and Pico-PV systems. 11,755 60,815 Small-Scale Providers Colombia Access to Natural Gas Households with gas connections. 34,138 204,828 Ethiopia Ethiopia Electricity Access Rural Household electricity connections, including two 60,000 300,000 Expansion compact fluorescent lamps. Honduras National OBA Facility for Water Households with water and sanitation 14,600 87,600 and Sanitation Services connections. India Improved Rural Community Ultraviolet water purification systems providing 25 77,878 Water in Andhra Pradesh access to clean water. India Improved Electricity Access to Households with electricity connections. 15 75 Indian Slum Dwellers in Mumbai Indonesia Expansion of Water Services in Households with water connections. 5,042 25,210 Low-income Areas of Jakarta Indonesia Expanding Piped Water Supply Households with water connections. 13,473 67,815 to Surabaya’s Urban Poor Kenya Microfinance for Community- Households with water connections. 17,500 202,000 managed Water Projects Lesotho Lesotho New Hospital PPP Inpatient services at the new Queen Mamohato 808,739 808,739 Memorial Hospital and outpatient services at three semi-urban filter clinics. Mongolia Mongolia Universal Access to Public access to telephone network for herder 1)  1 public access 22,315 Telecommunications communities; telephone network and 2) Wireless network for Tariat soum center. 2 wireless networks Morocco Improved Access to Water and Households with water and sanitation 12,426 62,130 Sanitation Services connections. Nepal Biogas Support Programme Biogas plants for rural households. 26,363 184,541 Philippines Improved Access to Water Households with water connections. 28,562 171,372 Services in Metro Manila Senegal Access to On-Site Sanitation Households benefitting from increased access to 11,495 103,455 Services new sanitation facilities. Uganda Reproductive Health Vouchers in Safe deliveries and treatments of sexually 97,248 162,838 Western Uganda transmitted diseases. Uganda Small Towns Water Supply and Water yard taps. 2,416 54,486 Rural Growth Centers Vietnam Targeting Service Expansion Households with water connections. 35,344 176,720 through Water Loss Reduction Total 1,184,991 2,796,556 Final number of beneficiaries may change slightly after the newly completed projects in Ethiopia, Kenya, India, Bolivia and Philippines a.  conduct their respective completion reports. 10 GPOBA ANNUAL REPORT 2013 carrying out two rigorous Impact Evaluations: one the target for safe deliveries by 21 percent. Key for an SHS project in Bangladesh, and the other for a findings demonstrated a net increase in private water project in Andhra Pradesh. GPOBA developed facility deliveries among women who had used four ICRs for closed projects. Findings were shared the voucher, which was greater than the reduction with the World Bank and Other Development Partners in public facility deliveries and home births. The (key lessons from these activities are discussed below). experience in Uganda revealed that voucher The team delivered two Semi-Annual Reports (SAMRs) redemption rates should be realistically estimated to track and analyze the implementation progress of during preparation and periodically assessed and subsidy projects and TA and dissemination activities adjusted as necessary during implementation. throughout the year. GPOBA also continued to update Additionally, the pilot revealed that using a the online portal “OBA Data” (www.oba-data.org), combination of pro-poor targeting methods, a strategic tool to disseminate the results of OBA such as geographic and individual household operations publicly. “OBA Data” enables users to means testing, is more efficient than using a single perform detailed analyses of project design features mechanism. and find data on project performance, such as the • Nepal Biogas Project. This was the first energy number of outputs delivered and beneficiaries reached. project involving biogas plants that GPOBA The database was accessed by nearly 2,000 users over successfully completed. The project supported the the course of the fiscal year. installation of 26,363 biogas plants, of which over 90 percent were operational at the project’s closing. Among the key success factors the ICR highlighted Lessons Learned was the fact that the project built on the success of an earlier project that had been implemented by Implementation Completion the government; this reduced demand-side risk by Reports making the benefits well known to the stakeholders, In 2013, in collaboration with the World Bank country in addition to providing an existing institutional units, GPOBA published ICRs on two projects— support system. Stakeholders undertook significant Uganda Reproductive Health Vouchers and Nepal awareness-raising and promotional efforts, which Biogas Support Program. ICRs assess a project’s facilitated sales in remote areas. The project achievement of objectives and outputs, prospects for demonstrated that technologically sound products sustainability, World Bank and borrower performance backed by an effective after-sales service network and compliance, and identify lessons learned. These and a strong monitoring system are essential projects were rated as “satisfactory” by the World for the adoption of an OBA approach. Finally, Bank. ICRs are critical to the CoE function of GPOBA, carrying out an assessment of the credit needs and allowing the team to share results and findings that are availability of credit to beneficiaries helped address objectively assessed and documented. Key findings the financial constraints to project uptake. from Uganda and Nepal are detailed below. • Uganda Reproductive Health Voucher Program. Impact Evaluations The ICR recorded a number of lessons from In 2013, GPOBA completed the baseline survey for the the implementation of GPOBA’s first health Bangladesh SHS Impact Evaluation, which presents voucher project, which brings maternal and other empirical evidence of the project’s impact on poor reproductive health services to rural communities households. Part of this survey served to analyze the in western Uganda. The GPOBA subsidy made market characteristics of SHS and the role of OBA in the vouchers affordable to beneficiaries, who used the adoption of new technologies, with a focus on the them to purchase these health care services— willingness to pay and welfare of beneficiaries. thereby stimulating demand for reproductive health care among those who could not otherwise afford it. The project successfully reached 90 Beneficiary Assessments percent of the target beneficiaries for treatment In 2013, GPOBA completed the Beneficiary Assessment of sexually transmitted infections, and exceeded (BA) for the Andhra Pradesh water project, which aimed GPOBA ANNUAL REPORT 2013 11 to provide safe drinking water to poor populations in the less-tested sectors of sanitation and solid waste in coastal areas. Among the BA’s key findings, the management, and two were in the fragile situations of purchase of safe water was taking place mainly at the Central African Republic and the West Bank. the plant’s location, and in many cases monthly expenditures were not exceeding $2 per person. • Nepal Municipal SWM project to improve SWM These findings are consistent with the project design services for 800,000 people. The government and thus considered acceptable. Also, where multiple of Nepal signed a Grant Agreement for $4.3 sources of safe water were available, villagers showed million in FY13 to improve access to high quality a preference for lower prices. A positive outcome was and financially sustainable SWM services in five the reduction in days lost due to illness and an increase municipalities in Nepal. The grant will finance in school days attended by children in the project area, service delivery subsidies over a four-year period to although this result cannot be solely attributed to the cover the gap between the costs of delivering SWM water project. services and the beneficiary revenues collected through fees. • West Bank SWM project to improve SWM Developing New Pilot services for 840,000 poor residents. This pilot Projects aims to improve the quality of primary solid waste GPOBA continues to develop new subsidy schemes, collection services and supports increased usage taking a balanced approach to new project of a sanitary landfill in the southern West Bank. The development. This includes scaling up and replicating OBA subsidies will be disbursed against improved pilots in sectors where GPOBA has significant service delivery and financial sustainability of 53 experience, such as energy and water, and testing OBA municipalities. approaches in less-tested sectors, such as sanitation • Kenya–Nairobi Sanitation project to provide and solid waste management. GPOBA also tests the access to improved sanitation and water supply, use of OBA approaches in FCS. All new proposals must benefitting 16,000 poor households. This pilot be vetted by an independent Panel of Experts (PoE) at will target the provision of a sewer connection two stages: and associated internal low cost plumbing/toilet facilities and a water connection where none 1. Eligibility. An initial assessment to ensure that exist for low-income households in Nairobi. The the project meets GPOBA’s eligibility criteria, nonsubsidized portion will be funded by household which include the country and sector, project deposits and a five-year loan from Nairobi City sustainability, and the number of poor people Water and Sewerage Company to the eligible expected to receive services.3 households. 2. Commitment. A review of the project to determine • Central African Republic sanitation project to that it is ready for implementation and that, improve access to water and sanitation services in its final form, it meets the eligibility criteria. for more than 285,000 people. The project Since GPOBA is administered by the World supports improved access to sustainable sanitation Bank, projects going to commitment undergo and water services in three districts of Bangui, fiduciary reviews covering financial management where OBA subsides will support the construction and procurement, along with assessments of 32,000 improved latrines with hand washing of environmental impact and social issues, in points. The project will also support access to water accordance with World Bank policy. services through the construction of 50 water kiosks and 1,300 social water connections. GPOBA’s PoE endorsed five new projects for • Kenya Water and Sanitation OBA Fund to commitment in FY13, totaling $33.5 million. Four were provide water and sanitation services for 30,000 households. This scale-up project builds on lessons from the recently closed community-managed 3 A full list of the eligibility criteria can be found in GPOBA’s water project in Kenya implemented by K-Rep Operating Principles, available at http://www.gpoba.org/ Bank. It supports municipal/county water service gpoba/governance. providers to access $16 million in loan finance 12 GPOBA ANNUAL REPORT 2013 from the domestic private sector to finance water a national fund for all renewable energy programs and sanitation subprojects. The subprojects will in the country, including biogas, mini-hydroelectric provide household water and sewer connections, generation, and solar power. In collaboration public water kiosks, and toilets, with OBA subsidies with the World Bank, GPOBA developed a TA supporting access to these services in low-income proposal to analyze a series of renewable energy areas. technologies and made recommendations for funding them under an OBA subsidy arrangement. GPOBA’s PoE also approved four new projects for This could potentially include seed funding from eligibility in FY13: the OBA Sanitation Fund for the GPOBA and contributions from other donors Greater Accra Municipal Area in Ghana; the Kenya and the government. The TA will also identify a Water and Sanitation OBA Fund (also cleared for potential pipeline of OBA projects funded by commitment this year); the Rural Electrification Hybrid Nepal’s Central Renewable Energy Fund. System project in Mali; a scale-up of the successful • The Philippines. GPOBA continued supporting the Reproductive Health Voucher Program in Uganda; design of two proposed OBA facilities for both the and the Electricity Access for Low-income Households renewable energy and water and sanitation sectors project in Zambia. in the Philippines: To explore new sectors and markets, GPOBA embarked ¡¡ SHS OBA Facility. The U.S. Department of on in-depth studies in FCS and irrigation in FY13. Energy is looking to establish a facility to These studies scoped potential projects that could fit provide OBA subsidies for electrifying up to 1 strategically with GPOBA’s objectives and the World million poor households in rural areas through Bank’s country partnership strategies. an innovative “fee-for service” utility solar home systems model. GPOBA is funding TA for the design of the facility, including new Development of OBA regulatory arrangements. Facilities ¡¡ Water and Sanitation OBA Facility. Based on Building on earlier efforts, GPOBA remains actively positive results from a GPOBA-funded water engaged with governments in Nepal and the pilot in Manila, the Department of Public Works Philippines, which have expressed an interest in and Highways (DPWH) has expressed interest mainstreaming output-based aid through government- in establishing a national OBA facility as part led OBA facilities. The provision of seed funding of the Philippines’ new financial framework for for OBA facilities to help leverage government and the water sector. The World Bank supported donor funds remains an important part of GPOBA’s this effort by carrying out an assessment of the mainstreaming agenda. beneficiaries of the water project in Manila in order to demonstrate the benefits of the OBA • Nepal. The government has indicated willingness approach. In parallel, the DPWH is assessing to use the experience gained through the GPOBA- the financing needs in the sector. funded biogas pilot, which closed in 2012, to launch GPOBA ANNUAL REPORT 2013 13 BOX 2 Project Highlight: Vietnam Upper Secondary Enhancement mechanism). Priority is given to students certified by the state as poor, those who are disabled, Agent Orange victims and/or orphans, and economically disadvantaged students from ethnic minority groups. Under this scheme, the East Meets West Foundation (EMWF) serves as the implementing agency and grant recipient. The schools bear the performance risk by fully pre-financing tuition for these students. Schools are reimbursed upon verification of satisfactory delivery of services, which requires selected students remain enrolled and attend at least 80 percent of classes, and students have a passing grade (a GPA of at least 5.0 on a scale of 1 to 10) at the end of each term. Standard exams are given during each term to assess student performance and Vietnam has made significant progress in education the quality of education provided. The in the last 20 years, achieving nearly universal GPOBA subsidy will fund tuition for targeted students, primary and lower secondary education. However, covering 55 to 84 percent of the total cost of all approximately 20 percent of the total population school-related expenses. As with all GPOBA projects, of lower secondary students drops out before high a user contribution is required. The user-contribution school, and about 45 percent of them had to drop from families covers all school-related expenses aside out from lower secondary school. There are still from tuition, including insurance, learning materials, remarkable disparities between advantaged and travel, lodging, and uniforms. disadvantaged children, linked closely with factors such as gender, ethnicity, and household income. EMWF also bears pre-financing risks, and has the Drop-out rates among disadvantaged groups are high, incentive to minimize implementation costs—as built generally because of economic hardship or low student into the scheme. The organization pre-finances half performance. of the variable operational cost, and is reimbursed only after agreed output indicators are independently Recognizing the need for improved access to upper verified. In this case, EMWF will have the incentive to secondary education, a grant to support access to help participating schools perform, as EMWF must education for lower-income students who cannot invest its own funds. afford tuition was signed in 2010. The objective is to improve access to good quality education and As of June 2013, around 8,145 students had been to strengthen student performance through upper enrolled, with 85.5 percent successfully passing secondary and professional secondary schools. the first term. The educational quality has been maintained, with an average of 6.0 GPA per student. GPOBA’s subsidy covers tuition expenses for students Only 2.36 percent of beneficiaries in the program from low-income families admitted to the participating dropped out of school because of economic hardship private or semi-public upper secondary schools. and poor performance. As GPOBA looks to expand its The project identifies beneficiaries by targeting portfolio of projects in less-tested sectors, including poor provinces and by relying on the “certificate education, this project can highlight successful features of the poor” (an existing state proxy means-testing and offer lessons for replication. B uilding a C ente r of E x p e r t is e he objective of the Center of Expertise Mainstreaming OBA T (CoE) is to provide a range of advisory and knowledge and learning services to support the adoption of OBA approaches by the In FY13, GPOBA continued to target three priority audiences with this activity: working with ODPs, governments, and the World Bank Group. This was World Bank Group, governments, and ODPs, as well as done through a combination of GPOBA technical to provide training opportunities and facilitate sharing support to design and implement OBA and RBF of best practices. In FY2013, GPOBA continued working mechanisms, awareness building, and knowledge toward its goal of becoming a CoE on OBA by building management. Highlights of activities carried out under on the knowledge and experience acquired through each business line of the CoE are described below. the design and implementation of OBA projects, focusing on four business lines: mainstreaming OBA, knowledge and learning, knowledge management (KM) and communications (see table 5). 16 GPOBA ANNUAL REPORT 2013 OBA projects to support sanitation in Nairobi and access to water and sanitation in low-income areas of TABLE 5   CoE Business Lines Kenya. GPOBA advanced discussions with MCC on 1. Mainstreaming OBA the exploration of OBA approaches for peri-urban   a. Other Development Partners electrification, as well as for electricity expansion in six   b. Governments African countries. GPOBA also worked with AusAID on the preparation of a proposed project designed to   c. World Bank Group increase access to electricity in Vanuatu. 2. Knowledge & Learning Program   a. Awareness Building   b. Broad Learning Working with governments to   c. Reinforced Learning scale up OBA projects 3. Knowledge Management In addition to engaging with governments related   a. Knowledge Products to OBA facilities in Nepal and the Philippines,   b. Knowledge Tools GPOBA also made efforts to mainstream the use of   c. Community of Practice (internal and external) OBA within government systems for the water and 4. Communications sanitation sector in Kenya and for the health sector in Uganda, securing $26.8 million of additional funding from Sida to support these scale-ups. The scale-ups are leveraging additional resources and introducing Working with ODPs innovative concepts. The Kenya project supports GPOBA is working with a number of ODPs that have creditworthy water utilities to access market finance to demonstrated a commitment to mainstreaming OBA extend services to the poor. The Uganda project, which by allocating development funding to be disbursed supported private health care facilities in the pilot, in accordance with OBA principles. GPOBA worked is supporting service improvements in public sector to strengthen mutual partnerships with these ODPs, facilities as part of the scale-up. providing continuous advisory and technical support on OBA/RBF concepts and application in operations, in particular through operational partnerships with Working with the World Bank country offices. GPOBA carried out OBA training Group workshops at Sida, DFID, the Asian Development Bank GPOBA continued to work with various departments (ADB), and the Millennium Cooperation Council (MCC), of the World Bank Group to provide technical and collaborated with the World Bank’s Water and support and integrate the use of OBA and RBF into Sanitation Program (WSP) on project preparations. infrastructure and social development projects. GPOBA conducted two missions to ADB headquarters PforR. The World Bank’s new PforR instrument has in Manila, and assisted ADB in preparing OBA identified 18 pilot operations after less than a year guidelines, peer-reviewed ADB’s first OBA energy and a half of operation, in health, education, social project in Vietnam, and assisted project managers in protection, social development, public financial designing and implementing OBA projects focused management, water and sanitation, public sector on water and urban development. GPOBA traveled governance, transport, and urban sectors. GPOBA to New Delhi to provide a two-day training and is supporting two of these projects: one for a road information exchange workshop for DFID staff, where maintenance and rehabilitation project in Uruguay the teams also discussed joint efforts to implement in conjunction with the government’s national OBA/RBF approaches. In addition to delivering a road network policy; and efforts to strengthen the two-day training session in Stockholm, GPOBA worked institutionalization of results-oriented public sector closely with Sida on designing the Reproductive management programs in the Brazilian state of Ceará. Health Voucher Program scale-up project in Uganda and supporting the appraisal of the Kenya OBA Fund. RBF activities. In collaboration with the Energy Sector GPOBA collaborated with WSP in developing two Management Assistance Program (ESMAP) and GPOBA ANNUAL REPORT 2013 17 Public Private Infrastructure Facility (PPIAF), GPOBA Indonesia, Morocco and Uruguay). GPOBA hosted sponsored flagship events and projects in the energy two training sessions in Benin and Senegal targeting sector under three main initiatives: 1. Lighting Africa, ODPs, the World Bank Group and government a joint IFC and World Bank program to improve access ministries. At these sessions, presenters from the to lighting in areas not yet connected to the electricity World Bank Group, Lighting Africa, and Agence grid, 2. Africa Electrification Initiative, which aims Sénégalaise D’Electrification Rurale incorporated to build a living body of practical knowledge and a local knowledge on renewable energy as well as water network of Sub-Saharan African practitioners for the and sanitation. Face-to-face training and knowledge design, development, and implementation of on-grid exchange sessions were also held with our partners and off-grid electrification programs,4 and in DFID, Sida, and ADB in New Delhi, Stockholm, and 3. Africa Clean Cooking Energy Solutions Initiative, Manila, respectively, where the teams brainstormed on an initiative to promote enterprise-based, large-scale opportunities to incorporate OBA/RBF instruments in dissemination and adoption of clean cooking solutions donor country operations. in Sub-Saharan Africa. The three initial countries of engagement are the Democratic Republic of Congo, GPOBA also participated in several international Senegal, and Uganda. events. Presentations on OBA principles, concepts, and scheme design were given at the European GPOBA is also supporting World Bank Group task Union (EU) Results-based Management Conference teams working on the design of urban solid waste (Maastricht, Netherlands), the United States Agency management pilot projects in select countries, an for International Development (USAID) Annual RBF initiative pro-poor subsidy scheme for public Infrastructure Workshop on “Adaptation & Innovation” transportation in Colombia, and the development (Washington, DC), and the Agence Française de of an RBF approach to improve delivery of reliable Développement (Paris). GPOBA also presented a case water and sanitation services to poor households in study on the Lesotho Hospital PPP project at the World Mexico. Finally, GPOBA increased the visibility of OBA Bank Institute South-South Knowledge Exchange in Country Assistance/Partnership Strategies (CAS/ (Maseru, Lesotho). During the World Bank’s annual CPS) as an effective means of providing aid to increase Sustainable Development Network (SDN) Forum access to basic services for the poor, as well as to (Washington, DC), GPOBA co-led and moderated a strengthen integration of the OBA approach in country learning session on RBF and OBA in the sanitation and programs; due to GPOBA’s efforts, OBA and/or RBF waste sectors, together with the World Bank Urban are now highlighted in the final CAS/CPS documents of unit, and the SDN/WSP-sponsored Behavior Change these countries. Community of Practice. The panel presented the use of RBF and OBA to influence behaviors in sanitation in projects and programs. Knowledge and Learning Program GPOBA continued to share knowledge and build Knowledge Management awareness on the use of OBA approaches through its The KM function continued to extract, analyze, and share Knowledge and Learning Program. Training activities lessons learned from the design and implementation reached over 1,000 participants during this fiscal year. of OBA and other RBF initiatives. GPOBA published Training presentations highlighted how PforR projects a working paper on “Lessons from Output-Based Aid encompass the core principles of OBA (Ethiopia, for Leveraging Finance for Clean Energy” (Working Paper 12, September 2012) (see box 3). This working paper was prepared as background documentation to support more effective and better targeted clean 4 Included in this program was GPOBA’s co-funding two publications: a guidebook, “From the Bottom Up: Using energy interventions by the World Bank and other Small Power Producers to Promote Electrification and multilateral and bilateral institutions in middle- and Renewable Energy in Africa–An Implementation Guide low-income countries by leveraging the private sector. for Regulators and Policymakers”; and a working paper, “Connection Charges and Access to Electricity in Sub- In addition, GPOBA co-authored a Policy Research Saharan Africa.” Working Paper on “Connection Charges and Electricity 18 GPOBA ANNUAL REPORT 2013 BOX 3 Lessons from OBA for Leveraging Finance for Clean Energy At present, the private sector plays a small role in financing economically viable clean energy projects in developing countries, where energy access needs are largely unmet. In FY13, GPOBA contributed to a working paper entitled “Lessons from Output-Based Aid for Leveraging Finance for Clean Energy” to highlight a number of efforts being undertaken by the World Bank and other Donors in middle- and low-income countries to address this issue. These efforts link support to clean energy with the need to make such support more effective at leveraging the private sector and more focused on delivering sustainable services to low-income consumers. While RBF instruments have long been used to deliver large-scale clean energy projects in developed countries, there is less experience in developing countries. Challenges to scaling up investment in developing countries include setting in place credible payment and verification mechanisms; raising equity finance, particularly to finance the early development stages of a project; raising debt finance, especially for small projects where there is limited access to sophisticated national or regional lending facilities; investors’ liquidity constraints, a result of the current financial climate, which puts a premium on (smaller) projects where capital is committed for relatively short periods; and the credibility of policies and agreements that support project delivery. Using the flexible design options offered by OBA, the paper analyzes innovative design options to address a number of the critical areas for clean energy projects, including incentivizing private sector involvement by disbursing subsidies in such a way as to reduce risks and maximize project cash flows; developing institutional arrangements, including local financial architecture; and ensuring continuous project evaluation and improvement. The experience with OBA is relevant to a number of institutional aspects that need to be developed in order for RBF to be a success in developing countries. As one approach, the working paper puts forward the concept of RBF Facilities as a way to apply OBA-type solutions at scale to address a number of the issues for delivering scaled-up investment in clean energy. An RBF facility focusing on clean energy could act as a national umbrella receptacle for international climate finance for a particular country. It would be a national level entity offering targeted subsidies/reimbursement after pre-agreed results have been independently verified. These results could be broader than simply meter readings, and could include other disbursement triggers, such as financial closures for targeted technologies or project commissioning. Subsidies could be used to target projects, project developers, financiers, and household consumers, helping to meet the energy needs of low-income consumers in developing countries. GPOBA ANNUAL REPORT 2013 19 Power from the Sun: An Evaluation of Institutional Effectiveness and BOX 4 Impact of Solar Home Systems in Bangladesh In 2002, the World Bank- financed Rural Electrification and Renewable Energy Development project began using an output- based approach to address the issue of insufficient grid capacity in rural Bangladesh through the installation of SHS. GPOBA became involved in 2010, contributing US$13.95 million to help subsidize the accessibility of the SHS for poor households via a three-year microcredit system. By project close, GPOBA funding supported the installation of over 480,000 SHS, benefitting over 2.4 million people in remote rural areas of Bangladesh. An impact evaluation study of the project was initiated in early 2012. The objectives of the study are to: identify the various impacts, direct and indirect, on the members of SHS households, including those on women; assess the nature and quality of the program delivery system; identify the market characteristics and determine the potential market size; and assess the effectiveness of the subsidy mechanism. As part of the study, a household survey was conducted in 128 villages (64 treatment or supplied with SHS, 64 control without such supply) covering 4,000 households (1,600 SHS adopter households in treatment villages, 4,000 non-adopter households in treatment villages, and 2,000 non-adopter households in control villages). Part of this survey served to analyze the market characteristics of SHS and the role of OBA in the adoption of new technologies, with a focus on the willingness to pay and welfare of beneficiaries. The household survey reveals the high cost of systems (even after the subsidy) had allowed households with relatively better physical and educational endowments to adopt SHS. But over time, the technology innovations allowed introduction of lower capacity and cheaper systems that have boosted demand among lower-income households. Findings of the impact assessment show that children’s study time increases with SHS adoption, more so for girls than for boys. Girls’ study times in the evening increased by 12.1 minutes per day on average compared to 8.5 minutes for boys. Although there is no significant positive effect of SHS on contraceptive prevalence rates, adoption of SHS is found to have a negative effect on recent fertility. In addition, SHS positively influences women’s mobility and general and economic decision-making, including the purchase of household goods. Women with SHS are found to spend more time tutoring children, watching television, socializing and visiting friends and neighbors who have adopted the SHS. Finally, disease prevalence has significantly reduced among SHS households, which may be contributed to an increased awareness developed by greater connectivity to television coupled with a healthier indoor environment (by replacing kerosene lamps). Because of the enormous success of this project, GPOBA intends to scale up the scheme to further expand access to solar energy in Bangladesh. 20 GPOBA ANNUAL REPORT 2013 Access in Sub-Saharan Africa” (Policy Research Communications Working Paper 6511, June 2013). The paper reviews As part of its overall strategy, GPOBA works to position ways to improve electrification rates in Sub-Saharan OBA within the context of RBF and the results agendas Africa by addressing the issue of high connection of its partners, as well as in broader international charges, a major obstacle for poor urban and rural discussions on aid effectiveness and innovative finance. residents. By using a range of communication tools, GPOBA aims to generate interest in an engagement around The OBA Community of Practice (CoP) sponsored OBA approaches by providing reliable and accessible by GPOBA continued to provide opportunities information to a broad audience of development for practitioners to share best practices in OBA partners, academics, nongovernmental organizations, through peer-learning, knowledge sharing, and and private sector actors, among others. This year, networking. GPOBA coordinated a face-to-face GPOBA reached out to the wider development event in December 2012 to launch the fiscal year community through its monthly newsletter, press 2012 Annual Report, providing an opportunity to releases, videos, an Annual Report, and efforts to reconnect members of the OBA CoP and recognize redesign the GPOBA website. GPOBA’s results during the past fiscal year. The KM team initiated revitalization of the CoP by establishing OBA also received global media attention in various a revised framework and a member engagement specialized news outlets. GPOBA’s role in financing strategy, incorporating feedback from a member several successful projects was recognized in the survey. A new collaborative online platform is media, including two energy projects in Ghana and expected to be available to members in by the final Uganda, the Africa Clean Cooking Energy Initiative, an quarter of the 2013 calendar year. education program in Vietnam, and the Honduras OBA water and sanitation facility. L ooking to the future t GPOBA’s annual Program Council Meeting understands the importance of expanding the use A held in Paris in April 2013, the Donors acknowledged the value of GPOBA’s work, noting in particular the efforts toward the OBA approaches to new frontiers. GPOBA is prepared to be a leader, piloting OBA in less- tested sectors and new frontiers, supporting mainstreaming OBA within the World Bank Group and results-based solutions to broader development ODPs, including the training provided to Donors and challenges, and sharing lessons learned and the interface with donor country programs. GPOBA best practices with an ever-widening group of intends to continue to reinforce its outreach, focusing development practitioners and governments. on less-tested sectors and in new frontiers such as FCS. Furthermore, GPOBA looks forward to the results In addition, GPOBA is carrying out studies to further of a renewed Independent Evaluation, which will expand its scope and assess the feasibility of OBA in measure GPOBA’s progress towards its vision new sectors, including urban transport, irrigation, and of becoming a CoE. Through all these efforts, education. GPOBA will seek to strengthen its own program, and to collaborate with Donors, the World Bank Testing innovative approaches in developing countries Group, and governments to achieve its mission of is inherently risky and will usually involve obstacles and supporting the delivery of basic services for the setbacks. GPOBA recognizes these issues, but also poor in developing countries. A p p e n dic e s 24 GPOBA ANNUAL REPORT 2013 APPENDIX A FINANCIAL S TATEMENT G POBA derives its resources from donor contributions, which are channeled through trust  Donor Contributions to funds administered by the World Bank Group. TABLE A1 GPOBA (in US$ million) The World Bank Group recovers an administrative fee Pledged Received To be Received for costs associated with this task. GPOBA’s budget and DFIDa 112.7 109.5 3.2 accounting processes are aligned with the World Bank IFC 97.8 97.8 – Group fiscal year, which runs from July to June. DGIS 28.3 28.3 – AusAID 37.4 37.4 – Sida 44.9 38.8 6.1 Contributions Received EUb 2.0 1.8 0.2 As of June 30, 2013, GPOBA’s Donors have pledged Total 323.1 313.6 9.5 a total of $323.1 million to the program, of which 97 Contributions for DFID are pledged in GBP and then converted to a.  percent ($313.6 million) has been received (appendix USD at the time of transfer. table A.1). In FY13, GPOBA received a total of b. Contributions for the European Union are pledged in Euros and then converted to USD at the time of transfer. $28.4 million from three Donors: DFID, Sida and the European Union (appendix table A.2). Disbursements GPOBA disbursements totaled $32 million in FY13 approved in prior years that are implemented over (appendix table A.3). Disbursements were made for multiple years. In accordance with the administration activities approved in FY13, as well as for activities agreements entered into by the World Bank and TABLE A2   Receipt of Donor Contributions by Year (in US$ million) FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Total DFID 2.5 3.4 6.8 21.7 13.3 10.2 19.2 14.4 11.2 6.8 109.5 IFC 35.0 25.5 37.3 97.8 DGIs 11.0 8.0 9.3 28.3 AusAId 0.3 4.2 24.6 8.3 37.4 Sida 6.9 8.9 2.2 20.8 38.8 EU 1.0 0.8 1.8 Total 2.5 3.4 41.8 33.0 57.9 45.1 28.1 53.9 19.5 28.4 313.6 GPOBA ANNUAL REPORT 2013 25  disbursement of subsidy funding by pilot projects   GPOBA Disbursements in under implementation, with the rest going to TABLE A3 FY13 (in US$) technical assistance, and preparation and supervision Program Management of projects. At $1.3 million, program management Program Management 1,304,697 and administration represented 4 percent of total disbursements, which includes CoE activities such as Sub-total 1,304,697 knowledge and learning. Disbursements related to FY13 Annual Work Program Technical Assistance 3,098,104 Portfolio Preparation and 2,706,431 Supervision Single Audit Process Subsidy Funding 24,939,871 The World Bank Group has instituted an annual Sub-total 30,744,407 “single audit” exercise for all trust funds. As part of this exercise, the GPOBA Program Manager signs Total 32,049,104 a trust fund representation letter attesting to the correctness and completeness of the financial process for all GPOBA trust funds. The task manager for each approved activity is required to confirm that GPOBA Donors, $0.5 million was collected as an due diligence has been exercised with respect to the administration fee. administration, management, and monitoring of the funds awarded for the activity, and has ensured that all Of the total disbursements this fiscal year, $30.7 expenses and disbursements are made in accordance million (96 percent) was related to the annual work with World Bank procurement and administrative program. Most of this amount ($24.9 million) was guidelines. 26 GPOBA ANNUAL REPORT 2013 APPENDIX B GPOBA PORTFOLIO OF SIGNED GRANT AGREEMENTS AS OF JUNE 30, 2013 Grant Number Average IDA Amount of People Subsidy per Country Project Name Eligibility ($millions) Benefiting Person ($) Description Armenia Armenia Gas and IDA Blend 3.10 23,739 130.59 This project closed on December 31, 2009, Heating having improved access to gas and heating services for 5,847 poor households in urban multi-apartment buildings, by subsidizing the cost of new service connections. Bangladesh Rural Electrification IDA 1.10 20,000 55.00 This project aims to help about 5,000 and Renewable households, shops, and small and medium Energy enterprises in rural Bangladesh to gain access Development to electricity by reducing the capital cost of – Solar Home mini-grid systems. The GPOBA grant will mean Systems providers can charge a tariff that is affordable to the connected beneficiaries. Bangladesh Rural Electrification IDA 13.95 1,575,000 8.86 This project aims to increase access to and Renewable energy services for poor people in rural Energy areas of Bangladesh by addressing the issue Development – Mini of insufficient grid capacity through the Grids installation of solar home systems (SHS). Over 315,000 rural households are expected to benefit. Bolivia Rural Electricity IDA Blend 5.18 45,000 115.00 This project will lead to direct connections Access with Small- and affordable access to electricity for at least scale Providers 7,000 poor Bolivian households and micro- enterprises in remote rural areas of Bolivia, benefiting some 45,000 people. Cameroon Water Affermage IDA 5.25 240,000 21.88 This project will subsidize the cost of new Contract- OBA connections to piped water for low- to middle- Coverage for income households currently without access, Expansion and is expected to benefit around 240,000 people. Colombia Access to Natural IBRD 5.09 210,000 24.21 This project closed on July 31, 2008, having Gas successfully connected 34,138 families to the natural gas distribution network along the Colombian Caribbean Coast. Ethiopia Ethiopia Electricity IDA 8.00 1,142,855 7.00 This OBA scheme will help EEPCo, a state- Access Rural owned national utility, finance the cost of Expansion providing access to electricity for poor customers in rural towns and villages with grid access. Ghana Solar PV Systems to IDA 4.35 75,000 58.00 The GPOBA grant will provide increased Increase Electricity electricity access through renewable energy Access technology for poor households in remote rural regions of Ghana, benefitting 75,000 people. GPOBA ANNUAL REPORT 2013 27 Grant Number Average IDA Amount of People Subsidy per Country Project Name Eligibility ($millions) Benefiting Person ($) Description Honduras National OBA IDA 4.59 75,000 61.20 This project developed an OBA facility Facility for Water to establish an efficient and transparent and Sanitation mechanism for financing infrastructure in water Services and sanitation projects in Honduras. 87,600 people gained access to water and sanitation services. India Improved Rural IDA Blend 0.85 75,000 11.33 This project closed on December 31, 2009, Community Water having provided access to safe drinking water in Andhra Pradesh for 77,878 poor inhabitants of Andhra Pradesh through the development of 25 community water supply schemes. India Improved Electricity IDA Blend 1.65 131,250 12.57 The GPOBA grant will subsidize the cost Access to Indian of electricity connections and wiring for Slum Dwellers in inhabitants of the Shivajinagar slum in Mumbai. Mumbai Indonesia Expanding Piped IBRD 2.41 77,500 31.06 The objective of this OBA scheme is to extend Water Supply to piped water connections to low-income Surabaya's Urban households in Surabaya. The project has Poor reached a total of 13,474 poor beneficiaries. Indonesia Extending IBRD 1.87 758,210 2.46 This project will facilitate access to the Internet Telecommunications and associated telecommunications and data in Rural Indonesia services through “community access points” in poor areas, benefitting an estimated 758,210 people. Indonesia Expansion of Water IDA Blend 2.57 58,150 44.25 This project aims to bring water services to Services in Low- communities in low-income areas of Jakarta by income Areas of funding one-off connection subsidies. Jakarta Kenya Microfinance IDA 3.09 106,267 29.09 The objective of this scheme is to increase for Community- access to and efficiency in water supply managed Water services for the poor in rural and peri-urban Projects areas of Kenya through investments in around 35 community water projects. Kenya Kenya Electricity IDA 5.15 264,000 19.51 This project uses GPOBA funds to scale up the Expansion Kenya Power and Lighting Company's model of delivering electricity connections in slums throughout Nairobi. The goal of this project is to scale up a method of connecting the urban poor through use of a small, but targeted, subsidy. Lesotho Lesotho New IDA 6.25 500,000 12.50 The GPOBA grant will provide subsidies for Hospital PPP inpatient services at a new 390-bed National Referral Hospital, and outpatient services at three semi-urban filter clinics that have been refurbished.  Liberia Monrovia Improved IDA 10.00 80,000 125.00 The GPOBA grant will off-set part of the capital Electricity Access costs associated with building the transmission and distribution networks for Monrovia. The grant will also subsidize connection costs for individual households. Mongolia Mongolia Universal IDA 0.26 22,315 11.62 This project closed on October 31, 2008, Access to having provided telephone services to around Telecommunications 20,000 members of herder communities, and telephone and internet services to around 22,315 residents of Tariat and Chuluut soum centers. Continued on next page 28 GPOBA ANNUAL REPORT 2013 Grant Number Average IDA Amount of People Subsidy per Country Project Name Eligibility ($millions) Benefiting Person ($) Description Morocco Improved Access IBRD 7.00 52,520 133.28 The project closed on December 31, 2012, to Water and having provided with access to safe water Sanitation Services and improved sanitation for over 11,000 low- income households in disadvantaged peri- urban and rural neighborhoods of Casablanca, Meknes, and Tangiers. Mozambique Water Private IDA 5.00 468,000 10.68 This project aims to provide subsidized Sector –Contracts water connections for domestic consumers for OBA Expansion in Mozambique through the construction of shared yard taps, expected to benefit up to 468,000 people. Nepal Biogas Support IDA 5.00 184,541 27.09 The aim of this scheme is to subsidize Programme approximately 37,300 biogas plants for rural Nepalese households to increase access to clean and affordable energy for cooking and lighting. Nepal Municipal Solid IDA 4.29 800,000 5.36 The project will support improvement in Waste Management the quality and financial sustainability of solid waste management services in four participating municipalities targeting 800,000 beneficiaries. Nigeria Pre-Paid Health IDA 6.02 22,500 267.34 This OBA scheme aims to provide affordable Scheme Project pre-paid health insurance 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 to IBRD 2.85 123,084 23.15 This project aims to provide affordable piped Water Services in potable water to poor households in Metro Metro Manila Manila, benefitting over 120,000 people. Philippines Philippines IBRD 3.65 786,765 4.64 The project aims to increase access to Reproductive affordable maternal and reproductive health Health services for around 200,000 low-income families Senegal Access to On-site IDA 5.76 104,562 55.13 This OBA subsidy scheme helped offset Sanitation Services the cost of new sanitation facilities for an estimated 15,000 poor households. Sri Lanka Increasing IDA Blend 5.08 77,035 65.94 Improving access to sanitation services in Household Access Greater Colombo (Sri Lanka) by increasing the to Domestic number of house connections to existing and Sanitation in new sewerage networks, and improving on-site Greater Colombo sanitation services at household level through rehabilitation of septic tanks and regulated desludging services. Uganda Kampala Water IDA 2.53 469,950 5.38 This scheme will provide a one-off connection Connections for the subsidy to partially fund the cost of new Poor domestic metered connections. The project envisages making about 6,000 new yard tap connections and installing over 1,000 new public water points over a period of three years. Uganda Small Towns Water IDA 3.21 51,972 61.71 This project increased access to sustainable and Rural Growth water supply services for the poor living in Centers selected small towns and rural growth centers, benefitting over 50,000 people. Uganda Reproductive IDA 4.30 164,616 26.12 This project improved women’s access to Health Vouchers in trained medical professionals throughout Western Uganda pregnancy and provided subsidized STD treatment for over 160,000 poor Ugandans. GPOBA ANNUAL REPORT 2013 29 Grant Number Average IDA Amount of People Subsidy per Country Project Name Eligibility ($millions) Benefiting Person ($) Description Uganda Grid-Based OBA IDA 5.50 510,000 10.78 The OBA scheme will provide subsidies to help Facility fill the gap between what the user is willing to pay for connecting to the electricity grid, and what it costs the electricity distribution companies to make these connections. Vietnam Targeting Service IDA 4.50 176,720 25.46 This project brought safe water services to Expansion through an estimated 35,000 poor families in rural Water Loss Vietnam. Reduction Vietnam Upper Secondary IDA 3.00 8,000 375.00 This pilot aims to increase access to secondary Education education at semi-public and private schools Enhancement for over 8,000 poor students. Subsidy payments to participating schools will be made on condition of pre-agreed indicators that demonstrate both a student's attendance and educational attainment. Yemen Safe Motherhood IDA 3.91 15,000 260.81 The objective of this project is to provide Program sustainable maternal health services, including up to 15,000 safe child births, to poor women of reproductive age (15-49) in Sana’a, Yemen. Yemen Water for Urban IDA 5.00 210,000 23.81 This OBA scheme will pilot the provision of Centers water services to low-income households through private operators willing to construct and operate the infrastructure for several years. Around 210,000 poor people are expected to benefit. Total 161.29 9,704,551 30 GPOBA ANNUAL REPORT 2013 APPENDIX C GPOB A T EAM Carmen Nonay Program Manager Rajesh Advani Infrastructure Specialist Ana Silvia Aguilera Infrastructure Specialist Wajiha Ahmed Portfolio Monitoring Alireza Azimipour Information Assistant Ahmed Amine Berrada Intern May Yin Chan Program Assistant Daniel Coila Information Specialist Mariana Dahan Infrastructure Specialist Raluca Golumbeanu Infrastructure Specialist Saúl E. González Communications Oleh Khalayim Monitoring and Evaluation Officer Hywon Cha Kim Knowledge Management Esther Loening Infrastructure Specialist Jessica Lopez New Business and Knowledge Management Consultant Rui Maia Voice Secondee Iain Menzies Senior Infrastructure Specialist Archana Narasimhan Resource Management Analyst Constance Polite Program Assistant Juliet Pumpuni Senior Infrastructure Specialist Luis Tineo Senior Operations Officer Leslie Villegas Infrastructure Specialist GPOBA ANNUAL REPORT 2013 31 42 GPOBA ANNUAL REPORT 2011 The Global The Partnership on Global Partnership Output-Based Aid on Output-Based Aid W W W. G P O B A . O R G W W W. O B A - D ATA . O R G