YEARS 2003-2018 @2018 The Global Partnership on Output-Based Aid (GPOBA) The World Bank 1818 H Street, NW Washington, DC 20433 USA Website: http://www.gpoba.org Prepared by the management of GPOBA, this Annual Report covers the period from July 1, 2017 to June 30, 2018. This work is a product of the staff of GPOBA, part of The World Bank Group. The boundaries, colors, denomina- tions, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. This work is licensed under the Creative Commons Attribution-NonCommercial 4.0 International License. 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TABLE OF CONTENTS Acronyms & Abbreviations iii Message from the Senior Director iv Letter from the Program Management Unit v Who We Are 1 15 Years of Impact 1 Strategic Focus 2 Our Value 3 Support from Donors 4 What We Do 5 Portfolio 6 Additions to the Portfolio 6 Portfolio Monitoring 6 Project Completion Reports 8 Analytical Work 8 Knowledge 11 Capturing Knowledge 11 Collaboration and Partnerships 11 Learning 13 Looking Ahead 15 Appendices 17 Appendix A: Financial Statements 18 Appendix B: GPOBA Projects 20 Appendix C: GPOBA Team 24 Our Implementing Partners 26 Where We Work 27 GPOBA ANNUAL REPORT 2018 ii Figures Figure 1. Evolution of GPOBA by Fiscal Year 2 Figure 2. GPOBA Donors 3 Figure 3. GPOBA Milestones 8 Figure 4. Map of GPOBA’s Global Reach (Subsidy Projects) 9 Figure 5. Distribution of Funding of GPOBA Subsidy Projects 9 Figure 6. Center of Expertise 11 Boxes Box 1. Results-Based Blended Finance Approaches: Maximizing Finance for 7 Development for the Poor Box 2. Irrigation Systems for Small-Scale Cotton Farmers in Burkina Faso 10 Box 3. Bangladesh/Myanmar Knowledge Exchange 12 Box 4. E-learning on Results-Based Financing: Key Concepts and Principles 14 Box 5. A Guide for Effective Results-Based Financing Strategies 14 GPOBA ANNUAL REPORT 2018 iii ACRONYMS AND ABBREVIATIONS AFR Africa Region LAC Latin America and Caribbean Region CoE Center of Expertise MENA Middle East and North Africa Region CoP community of practice MFD Maximizing Finance for Development DFAT Department of Foreign Affairs and Trade MSE micro and small enterprises (Australia) OBA output-based aid DFID Department for International Development OPCS Operations Policy and Country Services (United Kingdom) PforR Program-for-Results Financing DGIS Directorate-General of Development Cooperation (The Netherlands) PoE Panel of Experts DLI disbursement-linked indicator RBF results-based financing EAP East Asia and the Pacific Region SAR South Asia Region ECA Europe and Central Asia Region SDG Sustainable Development Goals FY fiscal year Sida Swedish International Development Cooperation Agency (Sweden) GSURR Global Practice for Social, Urban, Rural and Resilience SWM solid waste management IDA International Development Association TA technical assistance IFC International Finance Corporation GPOBA ANNUAL REPORT 2018 iv MESSAGE FROM THE SENIOR DIRECTOR Social, Urban, Rural and Resilience Global Practice World Bank Group Ede Jorge Ijjasz-Vasquez Senior Director, GSURR am pleased to present the Annual Report for prosperity. The approach, Maximizing Finance for I the Global Partnership on Output-Based Aid (GPOBA) for fiscal year 2018. Operating within the World Bank’s Social, Urban, Rural Development (MFD), is being systematically applied to optimally leverage limited public and private resources. GPOBA is a major contributor to the MFD agenda by designing and implementing projects that use blended and Resilience Global Practice, and connecting to the finance in mobilizing additional resources. Some of the entire World Bank Group, GPOBA supports our work to World Bank Group’s best examples of MFD in practice address development challenges and build inclusive, come from GPOBA’s work on basic service delivery in resilient, and sustainable communities. GPOBA’s efforts Bangladesh, Ghana, and Kenya, using results-based promote inclusive development by linking payments grants, guarantees, and other innovative financing to results from investments that specifically target solutions in water, sanitation, and energy sectors. low-income communities in developing countries. By offering bundled services in multi-sector projects, These results-based approaches have become an GPOBA’s investments help those communities access increasingly important part of development finance, social and infrastructure services while tackling especially as governments and development urbanization and rural development challenges, such as organizations strive to meet the United Nations’ affordable housing and solid waste management. Sustainable Development Goals and achieve measurable results under constrained funding. GPOBA’s depth of experience with innovative In commemorating its 15-year anniversary, GPOBA has results-based financing approaches is highly valued made great achievements in reaching the underserved. by clients across the world. The World Bank Group With its proven impact, thought leadership, and is working to redefine its approach to development multi-sector knowledge, GPOBA is well placed finance and addressing the rising aspirations of to provide viable innovative solutions to today’s the poor to reduce poverty and increase shared development challenges for greater impact. GPOBA ANNUAL REPORT 2018 v LETTER FROM THE PROGRAM MANAGEMENT UNIT Shobha Shetty Practice Manager, Partnerships and Resource Mobilization, GSURR his year marks a new milestone for GPOBA, Bank Group’s Maximizing Financing for Development T commemorating 15 years in providing innovative development financing solutions that link funding to the achievement of results. FY18 proved again to be a solid year of growth (MFD) agenda. Through these projects, GPOBA serves as a catalyst for maximizing financing as well as leveraging financial resources. through a diverse portfolio of 49 subsidy projects, with Additionally, two approved projects are awaiting grant grant funding totaling close to $248 million and reaching agreement signings: a solar irrigation pump project nearly 10 million beneficiaries. In addition, GPOBA in Tanzania, and a deaf education project in Vietnam. also benefitted from a historic subsidy disbursement of Preparations have also been completed for three approximately $28 million this past year. new projects in energy and education which are now being considered by GPOBA’s Panel of Experts for As noted in this report, GPOBA’s current portfolio approval. On the knowledge and learning front, GPOBA reflects our increasing focus and emphasis on continued to grow its capacity as a Center of Expertise result-based financing (RBF) approaches. Over the (CoE) on RBF through various activities, including past year, GPOBA has been working on refining three organizing a knowledge exchange on renewable new strategic pillars—blended finance, Program for energy, offering an online course on RBF key principles Results, and impact bonds—supported with analytical and concepts, and publishing a diagnostic tool to technical assistance (TA) and knowledge sharing design effective RBF strategies. activities, that in turn, help to identify development opportunities. We accomplished these results over the past year thanks to the strong commitment and support of In FY18, we signed two grant agreements totaling $8.45 our donors. As we move forward with new strategic million to our portfolio: an irrigation project in Burkina directions using multi-faceted RBF approaches, we Faso; and a scaled-up sanitation project in Kenya. These hope to make greater impact in the years to come, and both serve as examples of how GPOBA utilizes blended foster increased collaboration with our development finance to unlock additional resources for pro-poor partners to help low-income communities in developing infrastructure development aligning with the World countries live healthier, better lives. WHO WE ARE s millions of people around the world live with improved transparency and accountability. A without access to basic infrastructure and social services such as electricity, clean water, improved sanitation and education, Demonstrated by proven impact, new strategic focus and value-added solutions, our work helps drive human and economic development. enhancing the effectiveness of development spending is a priority for those seeking to reduce global poverty. 15 YEARS OF IMPACT In recent years, governments, donors, and GPOBA was established in 2003 to explore development partners have recognized that meeting output-based aid (OBA) approaches to basic service the needs of underserved communities as well provision. Now housed within the World Bank’s Social, as achieving the Sustainable Development Goals Urban, Rural and Resilience Global Practice (GSURR), (SDGs) requires innovative development financing GPOBA has over the course of 15 years built a diverse solutions alongside traditional aid delivery and portfolio of 49 subsidy projects in 29 countries and one conventional development finance approaches. territory, reaching nearly 10 million verified beneficiaries GPOBA’s experiences over the and has supported numerous technical assistance (TA) past 15 years address these and knowledge activities. It has evolved into a Center development challenges and of Expertise (CoE) on OBA and RBF, accumulating explore results-based financing lessons learned and experiences from pilot projects, YEARS (RBF) approaches to provide serving as a valuable resource for developing countries. access to basic services to GPOBA projects have also helped leverage additional 2003-2018 low-income communities, financing for projects through commercial financing GPOBA ANNUAL REPORT 2018 2 FIG 1 Evolution of GPOBA by Fiscal Year Blended Finance, Support for PforR, Impact Bonds such as public-private partnerships and commercial through better living standards for low-income lending for the viability of pro-poor investments. communities. GPOBA’s role has expanded over the years from providing OBA in TA specifically for infrastructure STRATEGIC FOCUS and social sectors to piloting subsidy projects in fiscal GPOBA’s strategic direction is anchored on three year 2006. At the request of our donors, GPOBA has pillars: blended finance, Program-for-Results and bolstered its mandate to incorporate more flexible impact bonds: RBF solutions—and in fiscal year 2017, evolved further to include three new strategic pillars: blended • Blended Finance – Results-based financing (RBF) finance, support to the World Bank’s “PforR” financing serves as a catalyst for unlocking additional instrument, and impact bonds (see Figure 1 above). financing for pro-poor infrastructure projects. Most of the projects GPOBA has supported over the last With 15 years of practice in OBA/RBF across multiple 15 years have helped leverage additional financing sectors, combined with knowledge and insight with from governments, donors and other partners, as on-the-ground experience, GPOBA has amplified well as from the private sector. development impact by collaborating with donors, • Program-for-Results – GPOBA was pivotal in private sector, governments and partners to create informing the World Bank’s Program-for-Results opportunities for long-term economic security (PforR) financing instrument which supports GPOBA ANNUAL REPORT 2018 3 government programs, in which the use of country benefits reach the targeted poorest communities. It is systems and financing is disbursed upon the noteworthy to point out that through the six GPOBA verification of results. GPOBA brings a pro-poor grant agreements signed between FY17–FY18, for focus and relevant, practical experience to every $1 of GPOBA funding, $4.6 was mobilized strengthen PforR projects and results frameworks, through contributions from the private sector, project disbursement-linked indicators (DLIs), verification implementers, consumers, governments, and other protocols and partnerships. development partners. In taking risks through piloting • Impact Bonds – Impact bonds are innovative, new RBF instruments, GPOBA has exercised the results-based, financial contracts between an flexibility to apply RBF in various contexts. investor, an outcome funder and a service provider that tackle either social or other development One of GPOBA’s unique attributes is its pro-poor challenges. Impact bonds are a form of focus. Among the development organizations public-private partnership that rewards investors for implementing RBF, GPOBA explicitly targets the successfully delivering impact. poor and marginalized populations to create financial incentives for service providers to extend basic services to low-income communities, along with providing OUR VALUE incentives to consumers to access those services. GPOBA has established visibility as a unique and GPOBA also serves hard-to-reach areas, a necessity in influential pioneer in development financing. GPOBA achieving the SDGs. While most global RBF projects was one of the early adopters of RBF—a relatively new are in the health and education sectors, GPOBA has instrument to development finance upon its founding unique experience in both social and infrastructure in 2003. Over the past 15 years, an increased emphasis sectors (with the majority of projects supporting access on aid effectiveness and accountability for results has to basic infrastructure services such as water and led to growth in popularity and application of RBF, and sanitation as well as energy). in the last decade, about $25 billion of development spending has been tied to results. GPOBA is considered In addition, GPOBA’s expertise is enhanced through its a leader in this field, having tested RBF (specifically knowledge and convening presence. GPOBA builds OBA) globally in multiple sectors, and has recently its capacity as a center of expertise on RBF, supports expanded to include more flexible RBF solutions. numerous technical assistance and knowledge and learning activities, and manages an online forum or GPOBA uses RBF to mobilize private investment “community of practice” on RBF. Given its position in development projects, while also ensuring that within the World Bank Group and through its operations, FIG 2 GPOBA Donors GPOBA ANNUAL REPORT 2018 4 GPOBA directly channels donor funding to critical Department for International Development (DFID) and development challenges faced by client countries. the World Bank in 2003 as a Bank-administered trust fund. Subsequently, four additional donors joined the partnership: the Australian Department of Foreign SUPPORT FROM DONORS Affairs and Trade (DFAT), the Dutch Ministry of Foreign GPOBA has a strong and committed donor base Affairs (DGIS), the International Finance Corporation supporting its efforts to link funding to actual results (IFC), and the Swedish International Development achieved. GPOBA was established by the UK’s Cooperation Agency (Sida). W H AT W E D O esults-based financing aims to enhance the constrained by the unaffordable connection cost R delivery of services by tying payments or funds to demonstrated and independently verified results. Unlike traditional while service providers lack financial incentives to extend access to these communities. Referring to a range of financial instruments inclusive of OBA, RBF international development financing, it switches rewards the delivery of outputs or outcomes using the emphasis from inputs, which is funding given incentives. in advance for expected results—to outputs and outcomes—which is funding conditioned on results. While OBA has remained at the core of its activities RBF exists in many forms, and can be implemented over the past 15 years, GPOBA has more recently with participation from the public sector, the private addressed development challenges using a broader sector, and with civil society organizations in various range of RBF through subsidy projects across sectors sectors. RBF has emerged as an important part of like water and sanitation, health, education, energy the international development community’s toolkit and solid waste management working in several as governments’ budgets are increasingly stretched geographic areas (rural, peri-urban, and urban). to keep up with the demand for infrastructure and GPOBA provides flexible and innovative financial social services and to ensure that these services reach RBF solutions that link funding to the achievement of low-income populations. These households are often tangible, verified results. GPOBA ANNUAL REPORT 2018 6 PORTFOLIO Several projects were considered by GPOBA’s Panel Subsidy projects are at the core of GPOBA’s business of Experts for eligibility and commitment, and are model and implementation of these projects provides expected to be signed in FY19: the evidence and lessons from success and failure to document best practices, which then serve as An additional grant from Sida will fund feedback into GPOBA’s own operations and those an energy access scale-up project of other donors, governments, and development in Zambia ($8.4 million) to increase partners. electricity connections in targeted rural areas. As part of an International Development Association (IDA) ADDITIONS TO THE PORTFOLIO operation ($26.5 million), the project aims to improve RBF is a mechanism that can help leverage private rural energy access in Zambia using a combination sector financing for infrastructure. FY18 includes of grid and off-grid technologies to connect rural a strong pipeline of blended finance operations households and micro and small enterprises; including two newly signed grant agreements on small holder irrigation in Burkina Faso and a sanitation scale- An off-grid solar project in Myanmar up in Kenya. Both of these new projects blend OBA ($3 million) in collaboration with the subsidies with a partial-credit guarantee mechanism to Energy Sector Management Assistance attract domestic commercial financing for infrastructure Program (ESMAP) to support the investments, and demonstrate GPOBA’s ability to International Finance Corporation (IFC)- deliver package-solution approaches that are tailored led Lighting Myanmar Program, which to each client’s needs. promotes market development for Lightning Global- certified solar products; and Burkina Faso Small Holder Irrigation ($5.85 million/IFC) An education project in Vietnam ($3 This project, developed in million) which aims to increase access partnership with IFC, aims to increase to Vietnamese Sign Language for knowledge of land and water management practices, deaf and hard-of-hearing children in and to introduce improved water management and primary and lower secondary education, using an RBF irrigation for cotton farmers in selected areas of mechanism. Burkina Faso. It will leverage financial resources from domestic commercial lenders. Implementation has begun in June 2018. Estimated beneficiaries: 60,000 PORTFOLIO MONITORING (see Box 2). The GPOBA portfolio of subsidy projects consists of 49 projects in 6 sectors, working in 29 countries and one territory for a total grant funding of $247.7 million, and Nairobi OBA Sanitation 2 cumulative disbursements of $183.6 million. This fiscal ($2.6 million/DGIS) year marked a record high of subsidy disbursement This project supports the Nairobi City amounting to $28 million. With the majority of our Water and Sewerage Company to projects located in Sub-Saharan Africa and South Asia partially cover the cost of constructing and in energy and water and sanitation (see Figure 5 compound sanitation facilities, including toilets, below), these projects have provided approximately 10 hand-washing basins, and storage tanks as well as million direct beneficiaries with access to basic services and connecting households to the sewer network with approximately 300,000 new beneficiaries reached leveraging financial resources from domestic lenders. in FY18. Ongoing portfolio monitoring and analysis Estimated beneficiaries: 12,000. continues to be an integral part of the GPOBA work program, and provides valuable lessons to inform the design of projects funded by development agencies and client countries. A full list of the subsidy projects can be found in Appendix B. GPOBA ANNUAL REPORT 2018 7 BOX 1 Results-Based Blended Finance Approaches: Maximizing Finance for Development for the Poor Given the significant financing gap to meet the In Kenya, for example, RBF is a key part of needs of developing countries and achieve the SDGs, commercial bank lending to water utilities for governments, multilaterals and other development investments in water and sanitation for low- partners are increasingly looking to the private sector income communities, supported by a 50 percent to help fill this gap. This means applying innovative partial credit guarantee from the U.S. Agency for financing instruments, which address investor risks International Development (USAID). In Bangladesh, to help mobilize private capital, optimizing the use an RBF grant is blended with household loan of scarce public resources to advance development finance from local microfinance institutions to objectives. However, this leads to another challenge: increase access to hygienic latrines in low-income how do we achieve inclusive development while rural areas. RBF grants are supporting pro-poor remaining attractive to the private sector? Results- renewable energy projects in rural Bangladesh based Financing (RBF) is a financial tool that can be and Ghana, where World Bank (International used to unlock additional resources for development Development Association) on-lending to domestic projects while ensuring that the poorest communities financial institutions helps to facilitate household benefit from these investments. investments in low-cost solar home systems and other sources of clean energy. An RBF grant is Over the past 15 years, GPOBA has been building also supporting the sanitation sector in Ghana by evidence on the ability of RBF to mobilize additional stimulating demand for urban household sanitation resources through a diverse portfolio of projects as well as attracting larger contractors to supply involving a mix of private finance, results-based grants toilets to low-income communities and encouraging and guarantees to deliver basic services to low-income financial institutions to enter the market. communities. GPOBA ANNUAL REPORT 2018 8 FIG 3 GPOBA Milestones PROJECT COMPLETION REPORTS • Zambia Electricity for Low-Income Households Documentation during post-completion (the last ($4.95 million) – The project exceeded its target, milestone of a project) is critical to increase efficiency, extending energy access to 32,843 households and to complete a continuous cycle of knowledge, (about 150 percent of the original target) and 5,117 gathering and transferring lessons to inform micro and small enterprises (MSEs), benefiting future development engagements. In FY18, three approximately 200,000 residents in low-income completion reports were produced from the following townships (approximately 32,800 beneficiaries). projects: • Nepal Solid Waste Management ($4.3 million) – ANALYTICAL WORK The project has partially achieved its development Analytical studies are a key component of GPOBA’s objectives in four municipalities, and has been work in testing the applicability of RBF in new sectors successful in the following areas: establishing an and environments. These studies focused on a series institutional framework for SWM in municipalities; of thematic reviews to analyze and communicate the improving service delivery, with one of the impact of RBF instruments in supporting access to basic participating municipalities (Dhankhuta) recognized services at scale. These activities (amounting to over $2 as the cleanest city in Nepal; and strengthening million) focus on affordable housing, urban infrastructure, financial sustainability by significantly increasing the climate, gender targeting, land administration, revenues from SWM services. 500,000 beneficiaries verification mechanisms, RBF methodologies and case were reached. studies. The results of these studies will inform the • Liberia Electrification ($10 million) – The project was design and implementation of subsidy projects as well as successful in ensuring broad-based and inclusive results-based aspects of other financed operations. access to electricity, and significantly improving living conditions among the poor. At project The studies also further examined the development of closing, a total of 17,165 low-income households GPOBA strategic pillars: were connected to electricity in 21 poor areas, exceeding the target of 16,806 households. 80,000 • Blended Finance: Efforts in FY18 focused on beneficiaries were reached. developing analytical work to capture and GPOBA ANNUAL REPORT 2018 9 FIG 4 Map of GPOBA’s Global Reach (Subsidy Projects) disseminate lessons learned, and to build Distribution of Funding of GPOBA FIG 5 Subsidy Projects awareness within the World Bank Group to further integrate the OBA/RBF instrument into the MFD By Region agenda with new projects. • PforR: In FY18, GPOBA focused on working with Europe & Central Asia, 1% the World Bank’s Operations Policy and Country Middle East & North Africa, 8% Services (OPCS) unit to support PforR projects through operational and advisory support, South Africa, 53% Asia, knowledge exchange, and learning activities. 20% GPOBA and OPCS provided support to five PforR operations at the preparation stage, including East Asia & the Pacific, 12% hands-on technical support in designing Latin America & Caribbean, 6% projects. By Sector • Impact Bonds: In FY18, GPOBA has played Telecom, 1% an important role in advocating for impact Solid Waste Mgmt, 5% bonds within the World Bank Group, actively participating in the multi-donor working group highlighting the value it could bring to achieving Water & Health, Energy, 43% Sanitation, 35% 15% the SDGs. Activities include analytical, knowledge, and technical assistance to identify project opportunities. Education, 1% GPOBA ANNUAL REPORT 2018 10 BOX 2 Irrigation Systems for Small-Scale Cotton Farmers in Burkina Faso fate subject to the extremes of either drought or flooding from excess rainfall. This project model has the potential to be replicated throughout the region and in other types of agribusiness through a blend of public and private financing. Investments will be disbursed using a “results-based” approach, which will pay farmers upon reaching certain project milestones and independent verification of outputs. Part of this funding will help farmers access financing from domestic financial institutions, pre- finance the sub-project investment costs and provide a partial risk facility for early entrants. As irrigation farming represents both a technological and cultural shift for these small-scale farmers, GPOBA and the IFC’s Advisory Services will co-finance farmers’ training on best agricultural practices for soil fertility and water management, water evaporation reduction, compost preparation, and erosion control. OBA subsidies will be paid to farmers that successfully GPOBA provided a $5.85 million grant to support implement investments in land management and small-scale cotton farmers in western Burkina Faso’s procure and install irrigation equipment. The OBA semi-arid region for better land management and subsidies will cover a part of the investment cost and irrigation practices, procurement and installation of will be paid as a grant on achievement of specified irrigation equipment, and credit financing to stem the outputs. land management, water storage, pumping effects of climate change and stabilize production. equipment, water distribution. This four-year program developed in collaboration with IFC is part of the World Bank’s Sahel Irrigation A second project element finances procurement and Initiative—is GPOBA’s first project in Burkina Faso installation of small-scale irrigation systems. Farmers and in direct support of irrigation. The collaborative who successfully implement these capital investments World Bank-IFC-GPOBA efforts seek to optimize the and meet project milestones—upon verification of their use of available resources to mitigate the negative functionality, and payment of the first loan installment effects of climate change on cotton sector productivity to their lenders—can be reimbursed up to 80 percent by training about 1,000 small-scale cotton farmers in of their investment costs. land and water management, investing in small-scale irrigation systems, and facilitating farmers’ access to The project’s third component helps the farmers who credit. apply early to access market finance through a partial risk facility. GPOBA will provide the initial funds for This funding will benefit farmers’ cooperatives this facility, after which other financial institutions may affiliated with SOFITEX (Société Burkinabé des Fibres fill this role. GPOBA’s grant will help mitigate some Textiles), which is responsible for more than three- of the risks such as natural disasters, loan payment quarters of the country’s cotton production. Burkina default, and incomplete project implementation Faso is the largest cotton producer in Sub-Saharan by compensating up to 50% of the lenders’ losses Africa, with cotton being the country’s second most and commitment to pay up to half of the fees for important export commodity in terms of revenue purchasing market-based risk-mitigation products. The generation—yet small-scale farmers have been wholly subsidy will also help farmers pay 80 percent of the reliant on rainwater for cultivation, leaving harvests’ interest of the first year’s loan to the lender. GPOBA ANNUAL REPORT 2018 11 to leverage resources through a blended finance FIG 6 Center of Expertise approach. Knowledge was captured from three closed projects: electricity projects in Liberia and Zambia and a solid waste management project in Nepal. These Learning & Knowledge Exchange findings were published as part of the Lessons Learned series. Three working papers analyzing how OBA can address affordable housing and urban infrastructure services in Kenya, Mumbai and Chennai were also produced. Community Events of Practice COLLABORATION AND PARTNERSHIPS The “RBF Community of Practice” (formerly the “OBA/ RBF Community of Practice”), continues to provide Website & opportunities for engagement and collaboration Publications among practitioners through its online platform. In Communications addition to thematic postings, the addition of an “Impact Bonds” sub-platform expanded the breadth of knowledge and discussions on RBF. During the year, the CoP featured three webinars complemented KNOWLEDGE by summary podcasts on three projects: a sanitation GPOBA’s knowledge program is a fundamental project in Bangladesh, solar home systems in Ghana, part of its capacity as a Center of Expertise on OBA and solid waste management in Nepal. and RBF. The program gathers knowledge through lessons learned and operational experiences using Development of partnerships with donors, other an approach incorporating content management, partners and governments is also central to GPOBA’s collaboration, and technical learning. Put together, role as CoE. Some highlights of this year’s collaborative these activities are the foundation of the CoE, and engagements and global knowledge exchanges are lend GPOBA credibility in the field of RBF (see detailed below: Figure 6 above). Energizing Development (EnDev). Energizing In FY18, GPOBA captured and disseminated a variety Development (EnDev), an energy access partnership of publications, multimedia products and delivered currently financed by six donor countries: the valuable knowledge exchanges. In addition, GPOBA Netherlands, Germany, Norway, United Kingdom, collaborated with other RBF practitioners through the Switzerland and Sweden to promote sustainable access CoP, and provided learning and training opportunities. to energy services for the poor. GPOBA’s engagement Disseminating these experiences collectively provides includes collaboration through EnDev’s knowledge a better understanding of the challenges in our platform with our community of practice, opportunity subsidy projects as well as informing the development to peer review their energy program, and have community on the impact of our work. These activities discussions on design and implementation of energy form the foundation of GPOBA’s role as a CoE, building projects. evidence in the field of RBF. World Water Week 2017, Stockholm, August 27- September 1, 2017. GPOBA participated in delivering CAPTURING KNOWLEDGE a showcase session on “The RBF Experience in GPOBA produced a series of case studies “Maximizing Improving Systems of Accountability in Water and Finance for Development for the Poor” (see Box 3 below) Sanitation.” The presentation described OBA to apply innovative financing instruments to analyze subsidies in Senegal and Sri Lanka as well as an and showcase experiences where OBA has been used OBA TA in Indonesia. GPOBA’s messages were GPOBA ANNUAL REPORT 2018 12 BOX 3 Bangladesh/Myanmar Knowledge Exchange OBA Adds Value in Blended Finance approaches, designed to help countries deliver basic service to low-income communities, makes payments to a service provider only after the service has been successfully delivered. This ensures a quality product and proper installation, which is especially critical for highly technical projects such as solar home systems. Similar to the 2016 GPOBA knowledge event in Bangladesh for donors, participants received firsthand knowledge on project design and implementation experiences through a training workshop delivered by the Infrastructure Development Company Limited (IDCOL), the implementing agency of Bangladesh Rural Electrification and Renewable Energy Project (RERED) and other project sponsors. This knowledge exchange included an important supplemental component of field visits to selected project sites of the RERED project. The participants traveled near Rangpur, Bangladesh to visit installations of solar irrigation pump systems to see, solar home systems, biogas systems, and solar irrigation systems which also demonstrated ancillary Bangladesh/Myanmar Knowledge Exchange, May uses of derived energy surplus. RERED is one of the 5–11, 2018. A delegation from Myanmar that included most successful programs to apply RBF approaches to representatives of the Ministry of Electricity and support various renewable energy technologies and Energy and the Department of Rural Development, their application, going beyond solar irrigation pumps as well as the agencies responsible for the World and solar home systems to mini-grids, biogas plants, Bank-funded National Electrification Project (NEP) and clean cook stoves—making access to clean energy visited Dhaka, Bangladesh for a knowledge-sharing affordable to low-income populations. event on rural electrification and renewable energy. A major focus of the workshop was the role of results- The results of this exchange is helping design a World based financing (RBF) in making solar home system Bank-sponsored off-grid project in Myanmar currently technology affordable to low-income households. RBF under preparation. reinforced by co-presenters from the World Bank, the LGUGC is the implementing agency of Access to Government of Indonesia, and the nationally chartered Sustainable Energy Programme (ASEP) – photovoltaic water utility from Sri Lanka. An international event (PV) mainstreaming. held annually, World Water Week in 2017 hosted 377 organizations, offered 238 sessions, and welcomed Global Water Summit, Paris, April 15–17, 2018. GPOBA 3,256 participants. participated in the Global Water Summit alongside colleagues from the World Bank Group Water Practice Global Off-Grid Solar Forum and Expo, Hong Kong clients from GPOBA-funded water and sanitation January 22–26, 2018. GPOBA participated in the Forum projects in Kenya, and delivered a presentation on which hosted over 670 off-grid solar professionals from the role and value added of RBF in blended finance 65 countries. GPOBA facilitated a dialogue between operations. The workshop was organized into three Myanmar and the Local Government Unit Guarantee sessions, during which discussions took place on: Corporation (LGUGC) of the Philippines on competitive (i) the concept and importance of blended finance in international bidding for solar home systems (SHS). the water and sanitation services (WSS) sector, and the GPOBA ANNUAL REPORT 2018 13 foundational issues that need continuous attention challenges of results-based urban sanitation in order to scale up blending; (ii) structuring blended interventions in Ghana and across the developing finance case studies; and (iii) RBF in the context of world. The workshop provided an opportunity to serving the poor, as well as various products that the reflect on the experiences and lessons learned World Bank Group and other development partners under the Greater Accra Metropolitan Area (GAMA), can offer to help bring more commercial financing into project and other GPOBA projects structured around the WSS sector. results-based approaches. The three-day workshop involved a mix of presentations, discussions, trainings, Bangladesh/Myanmar Knowledge Exchange, and site visits. Dhaka, May 5–11, 2018. A delegation from Myanmar that included representatives of the Ministry of Zimbabwe Programmatic Climate Change, June 12– Electricity and Energy and the Department of Rural 22, 2018, GPOBA supported the World Bank’s team for Development, as well as the agencies responsible for Zimbabwe’s Programmatic Climate Change Technical the World Bank-funded National Electrification Project Assistance Program in scoping project and partnering (NEP) visited Bangladesh for a knowledge-sharing opportunities for blended finance operations in event on rural electrification and renewable energy. The rural infrastructure services. The Program is funded participants exchanged design and implementation by the Zimbabwe Reconstruction Fund (ZIMREF), a project experience with the Infrastructure Development World Bank-administered multi-donor trust fund,  and Company Limited (IDCOL), the implementing agency principal development aid facility for Zimbabwe. The of the Bangladesh Rural Electrification and Renewable objective of programmatic TA is to strengthen the Energy Project (RERED), the Sustainable and capacity of the government of Zimbabwe to integrate Renewable Energy Development Agency (SREDA), GiZ, climate change considerations into the planning, and other project sponsors. design, and implementation of development projects in priority sectors, while turning knowledge into Donor Working Group on Impact Bonds, Brussels, investment plans that can be financed by diverse May 14–18, 2018. A workshop was held in Brussels to climate finance mechanisms. finalize reports that will outline a set of recommended strategies for using Impact Bonds and similar instruments efficiently, effectively, and at scale. LEARNING The meeting convened representatives from 23 As part of its educational outreach efforts, GPOBA organizations, including bilateral cooperation agencies, produced e-learning courses on RBF key concepts and multilateral development agencies, private foundations, principles (see Box 4 below) as well as on municipal and civil society. solid waste management. GPOBA also delivered a face-to-face workshop that featured an RBF diagnostic Urban Sanitation Workshop: Accra, May 29–31, tool, “A Guide for Effective Results-Based Financing 2018. In collaboration with the World Bank and the Strategies” which highlights practical case studies to government of Ghana, GPOBA supported a workshop guide participants in designing effective RBF strategies in Accra that included discussions of implementation (see Box 5 below). GPOBA ANNUAL REPORT 2018 14 BOX 4 E-learning on Results-Based Financing: Key Concepts and Principles Results-based financing includes a range of gain skills to 1) define RBF approaches funding mechanisms that reward the delivery of and explain their rationale, 2) identify RBF outputs or outcomes through incentives. This requirements and design variables, 3) diagram self-paced e-learning course provides an overview project structure of an RBF approach, 4) identify of results-based financing (RBF) through case the benefits and considerations of using an RBF studies, and focuses on the role that results- approach, and 5) describe some of the most based approaches can play in the delivery of common forms of RBF. infrastructure and services. The course introduces the key concepts and principles behind results- This e-learning course is available through the based financing approaches. Participants will World Bank’s online Open Learning Campus. BOX 5 A Guide for Effective Results-Based Financing Strategies This guidebook provides an overview of key RBF instruments through a simplified typology, and illustrates how RBF has been used in various contexts and across different countries and sectors. Drawing attention to It presents RBF market trends and provides insights to help inform Providing flexibility to outcomes RBF design decisions. The diagnostic tool component provides a achieve results set of structured questions and frameworks to guide development practitioners in their use and design of RBF schemes, and includes in-depth analysis of the specific applications of key instruments to maximize impact in projects. The approach draws on lessons from Aligning incentives Accountability to with beneficiary welfare global experience with RBF focusing on issues of specific relevance beneficiaries to GPOBA and its work providing technical input on OBA and RBF. LOOKING AHEAD s we look forward toward the years ahead future. In the coming year GPOBA will expand and A with renewed strategic direction, GPOBA will continue to push boundaries by developing and preparing a robust subsidy portfolio intensify its strategic engagements with new and current donors to highlight and support our new focus on the RBF agenda. Given the use of a broader range using a mix of RBF instruments particularly focusing on of RBF mechanisms, GPOBA is also planning to unveil a the three new pillars. Going forward, GPOBA will also new name (soon to be revealed). focus on investment operations that leverage donor resources to maximize private sector financing designed GPOBA’s experience and role remain highly relevant to help selected countries achieve the SDGs in service in today’s results-focused development environment, delivery, testing new sectors and bundling services. as exemplified by the development partners and governments adopting RBF approaches, ensuring that The expansion of our focus to RBF is expected to investments are socially inclusive and benefit low- generate more demand for GPOBA products in the income communities. APPENDICES GPOBA ANNUAL REPORT 2018 18 APPENDIX A FINANCIA L S TATEMENT G POBA derives its resources from donor Donor Contributions to GPOBA contributions, which are channeled through TABLE A1 (in $millions) trust funds administered by the World Bank Group. The World Bank recovers an Donor Pledged Received administrative fee for costs associated with this task. DFID 112.81 112.81 GPOBA’s budget and accounting processes are aligned IFC 97.80 97.80 with the World Bank fiscal year, which runs from July to DGIS 28.27 28.27 June. DFAT 37.49 37.49 SIDA 69.73 65.63 CONTRIBUTIONS RECEIVED EU 1.80 1.80 Total 347.90 343.80 As of June 30, 2018, GPOBA’s donors have pledged a total of $347.9 million to the program, of which $343.8 million has been received (see Table A1). In fiscal year 2018, GPOBA received $5.9 million from donors (see Table A2). all activities approved in fiscal year 2018, as well as for GPOBA disbursements totaled $3.84 million in fiscal activities approved in prior years that are implemented year 2018 (Table A3). Disbursements were made for over multiple years. TABLE A2 Receipt of Donor Contributions by Year (in $millions) FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Total DFID 2.50 3.40 6.80 21.70 13.30 10.20 19.20 14.50 11.22 6.84 1.63 1.52 112.81 IFC 35.00 25.50 37.30 97.80 DGIS 11.00 8.00 9.27 28.27 DFAT 0.26 28.93 8.31 37.49 SIDA 6.90 8.90 2.20 20.80 3.04 15.68 2.21 5.90 65.63 EU 1.00 0.80 1.80 Total 2.50 3.40 41.80 32.96 53.70 49.40 28.10 54.00 19.53 28.44 4.67 17.20 2.21 5.90 343.80 GPOBA ANNUAL REPORT 2018 19 TABLE A3 Disbursements FY 2018 Actual expenses as of June 30, 2018 Uses of Funds W1/W2 W3 Prep/Sup W3 Subsidy PMU Total PMU Administrative Cost — — $558,204 $558,204 Business Development/Portfolio $1,260,000 $1,444,000 $2,704,000 Knowledge & Repositioning $577,000 $577,000 Total $1,837,000 $1,444,000 $558,204 $3,839,204 At $558,204, program management and administration representation letter attesting to the correctness and expenses represent approximately 15 percent of total completeness of the financial process for all GPOBA disbursements. trust funds. The task manager for each approved activity is required to confirm that due diligence has been exercised with respect to the administration, SINGLE AUDIT PROCESS management, and monitoring of the funds awarded The World Bank Group has instituted an annual for the activity, and has ensured that all expenses and ‘single audit’ exercise for all trust funds. As part of disbursements are made in accordance with World this exercise, the GPOBA Head signs a trust fund Bank procurement and administrative guidelines. GPOBA ANNUAL REPORT 2018 20 APPENDIX B GPOB A PR OJEC T S TABLE B1 Ongoing Projects Amount Planned Country Project Name Grant Amount Disbursed Output Description beneficiaries Energy Bangladesh Scale-Up for Bangladesh Rural $15,000,000 $10,697,517 Solar home systems, biogas 1,200,000 Electrification and Renewable Energy plants minigrids, and solar Development irrigation pumps. Mali Rural Electrification Hybrid System $5,000,000 $2,973,739 Households with electricity 130,000 connections and solar home systems Philippines GPOBA Access to Sustainable $3,000,000 $466,382 Solar home systems 27,500 Energy Project – PV Mainstreaming Solomon Solomon Islands Electricity Access $2,225,000 $297,676 Households with electricity 14,620 Islands Expansion Project connections and minigrid connections Vanuatu Improved Electricity Access $4,850,000 $1,138,611 Households with electricity 21,440 connections Health Uganda Uganda Reproductive Health $13,300,000 $6,909,216 Safe deliveries 132,000 Voucher Program II – Scale Up Irrigation Burkina Faso Burkina Faso Irrigation $5,850,000 $0 Increased Cotton Production 1,000 Water and Sanitation Bangladesh OBA Sanitation Microfinance $3,000,000 $2,117,126 Hygienic latrines 850,000 Program Ghana Urban Sanitation Facility for Greater $4,850,000 $4,850,000 Toilet facilities 132,000 Accra Kenya Nairobi Sanitation Project $6,930,000 $5,361,232 Water and sanitation 80,000 connections Sri Lanka Increasing Household Access to $5,080,000 $2,860,588 Sewerage connections and 77,035 Domestic Sanitation in Greater on-site sanitation services Colombo Kenya Urban Water and Sanitation OBA $11,835,000 $3,562,108 Water and sanitation 150,000 Fund for Low Income Areas Project connections Solid Waste Management West Bank* West Bank Solid Waste Management $8,256,623 $8,256,623 Improved SWM services 840,000 Totals $89,176,623 $49,490,868 3,655,595 * Closed projects pending independent verification and disbursement processing. GPOBA ANNUAL REPORT 2018 21 TABLE B2 Fully Implemented Projects Disbursed Output No of Country Project Name Amount description No of Verified Outputs Beneficiaries Education Vietnam Vietnam Education Project $2,896,389 Tuition 8,145 8,145 Packages Energy Armenia Amenia Access to Heat/Gas $3,087,196 Households 5,847 23,739 with access to heating either through an individual connection or local boiler system Bangladesh Rural Electrification and Renewable $13,950,000 Solar Home 497,613 2,488,065 Energy Development – SHS Project Systems Bangladesh Rural Electrification and Renewable $1,099,581 Mini grid and 2,184 8,500 Energy Development – Mini Grid solar water Project pumps Bolivia Bolivia Rural Electricity Access with $5,152,403 Solar Home 11,755 60,815 Small-Scale Providers Systems and Pico-PV systems Colombia Colombia Natural Gas $4,880,382 Households 34,138 204,828 with gas connections Ethiopia Ethiopia Electricity Access Rural $451,290 Household 60,000 300,000 Expansion Project electricity connections, including two compact fluorescent lamps Ghana Solar PV Systems to Increase Access $4,065,021 Solar Home 16,822 100,932 to Electricity Services in Ghana Systems and solar lanterns India Improved Electricity Access to Indian $40,901 Households 15 75 Slum Dwellers with electricity connections Liberia Liberia Electrification $9,983,743 Households 16,739 83,695 with electricity connections Nepal Biogas Support Programme in Nepal $4,974,979 Biogas plants 26,363 184,541 for rural households Uganda Energy for Rural Transformation $5,499,179 Households 36,864 184,320 Project with electricity connections Kenya Kenya Electricity Expansion Project $5,150,000 Households 41,273 165,092 with electricity connections Kenya Kenya Electricity Expansion $3,000,000 Households  54,000 216,000 Project-Additional Financing with electricity (KEEP-AF) connections Zambia Electricity Access for low income $4,950,000 Households  38,000 190,000 households in Zambia with electricity connections (continued on next page) GPOBA ANNUAL REPORT 2018 22 TABLE B2 Fully Implemented Projects (continued) Disbursed Output No of Country Project Name Amount description No of Verified Outputs Beneficiaries Health Lesotho Lesotho New Hospital PPP $6,250,000 Inpatient 808,739 808,739 services at the new Queen Mamohato Memorial Hospital and outpatient services at three semi-urban filter clinics Nigeria Pre-paid Health Scheme Pilot in $4,128,973 Medical 13,473 13,473 Nigeria Services Philippines Philippines Reproductive Health $2,001,146 Enrollments 99,319 453,440 and vouchers for safe deliveries Uganda Reproductive Health Vouchers in $4,046,688 Safe deliveries 97,248 162,838 Western Uganda and treatments of sexually transmitted diseases Yemen Yemen Safe Motherhood Program $3,555,225 Enrollments 16,878 33,756 Telecomunications Indonesia Extending Telecommunications in $1,516,534 Internet 222 476,000 Rural Indonesia locations Mongolia Mongolia Universal Access to $257,335 1 public access 3 22,315 Telecommunications telephone network and 2 wireless networks Water and Sanitation Honduras National OBA Facility for Water and $4,536,847 Households 14,600 87,600 Sanitation Services with water and sanitation connections Cameroon Cameroon Water Affermage contract $1,816,259 Households 25,254 151,524 – OBA for coverage expansion with water connections India India Naandi Foundation $834,276 Ultraviolet 25 77,878 water purification systems providing access to clean water Indonesia Expanding Piped Water Supply to $1,084,391 Households 13,473 67,815 Surabaya’s Urban Poor with water connections and Master meters Indonesia Expansion of Water Services in Low $1,743,902 Households 5,042 25,210 income areas of Jakarta with water connections (continued on next page) GPOBA ANNUAL REPORT 2018 23 TABLE B2 Fully Implemented Projects (continued) Disbursed Output No of Country Project Name Amount description No of Verified Outputs Beneficiaries Kenya Microfinance for $2,597,119 Households 17,500 202,000 Community-managed Water Projects with water connections and Water Kiosks Morocco Improved Access to Water and $6,999,766 Households 12,426 62,130 Sanitation Services Project with water and sanitation connections Mozambique Water Private Sector Contracts $4,768,183 Households 30,764 163,357 OBA for coverage expansion in with water Mozambique connections Philippines Improved Access to Water Services $2,063,573 Households 28,562 171,372 in Metro Manila with water connections Senegal On-Site Sanitation Project $5,099,544 Households 11,495 103,455 benefitting from increased access to new sanitation facilities Uganda OBA in Water Supply in Uganda’s $2,414,031 Water yard 2,416 54,486 Small Towns and Rural Growth taps and Public Centers Water Points. Uganda OBA in Kampala – Water $1,509,455 Water yard 7,524 129,900 Connections for the Poor taps, public water points Vietnam Vietnam Rural Water (EMW) $4,499,967 Households 35,344 176,720 with water connections Solid Waste Management Nepal Nepal Solid Waste Management $3,364,616 Improved SWM 500,000  500,000 services Totals $134,268,894 8,112,755 GPOBA ANNUAL REPORT 2018 24 APPENDIX C GPOB A TEAM Shobha Shetty Practice Manager/Acting Head Catherine C. O’Farrell Head Rajesh K. Advani Senior Infrastructure Specialist Inga Afanasieva Infrastructure Specialist Sylvestre Bea Infrastructure Specialist Oxana Bricha Senior Program Assistant Amsale Bumbaugh Operations Analyst Daniel Coila Operations Analyst Raluca Golumbeanu Senior Infrastructure Specialist Saúl E. González Senior Knowledge Management Assistant Oleh P. Khalayim Monitoring and Evaluation Officer Hywon Cha Kim Senior Knowledge Management Officer Charis Lypiridis Infrastructure Specialist Jessica A. Lopez Operations Officer Juliet Pumpuni Senior Infrastructure Specialist Zaruhi Tokhmakhyan Senior Infrastructure Specialist Dilshod B. Yusupov Operations Analyst GPOBA ANNUAL REPORT 2018 25 Credit: World Bank. GPOBA Team Washington, DC 2018 GPOBA ANNUAL REPORT 2018 26 OUR IMPLEMENTING PARTNERS N E P A L GPOBA ANNUAL REPORT 2018 27 WHERE WE WORK Armenia Bangladesh Bolivia Burkina Faso Cameroon Colombia Ethiopia Ghana Honduras India Indonesia Kenya Lesotho Liberia Mali Mongolia Morocco Mozambique Nepal Nigeria Philippines Senegal Solomon Islands Sri Lanka Uganda Vanuatu Vietnam West Bank Yemen Zambia www.gpoba.org