2010年-世界发展银行全球_Output-Based_Aid_in_Water_and_Sanitation___The_Experience_So_Far_4页_1mb

OBA/Approaches Summary: Output-Based Aid in Water and Sanitation

Core Content

Output-Based Aid (OBA) is a results-based financing mechanism that links public funding to the delivery of specified outputs or services. In the water and sanitation sector, OBA has been implemented through public-private partnerships, with the goal of improving access to essential services for poor communities.

Key Projects and Statistics

• There are currently 22 OBA projects in the water and sanitation sector with World Bank Group participation.
  • 15 water supply schemes
  • 3 sanitation schemes
  • 4 projects providing both water and sanitation
• 7 projects are funded by the World Bank, totaling US$82 million (including IDA and IBRD funds).
• 15 projects are funded by GPOBA, totaling US$54.9 million.
• Subsidies typically cover 65% of total costs.
• Co-financing is usually provided by beneficiaries and amounts to about 15% of total costs.
• Some projects involve government or public sector utilities as co-financiers, such as the National Water and Sewerage Corporation in Uganda.

Targeting Mechanisms

• Geographic targeting is the most common method, used in almost all water projects.
• Means-tested targeting and self-selection are also employed in some projects.
  • Philippines: Combines geographic and means-tested targeting, targeting communities certified as "indigent."
  • India (Andhra Pradesh): Uses a combination of geographic, means-tested, and self-selection targeting through the "white ration card" system.

Performance Risk

• Service providers bear the performance risk, meaning they must pre-finance outputs before being reimbursed.
• Verification of outputs (e.g., working connections) is usually done by independent verification engineers.
• Phased payments are used in some projects to enhance sustainability:
  • Vietnam Rural Water Project: 80% of subsidy is disbursed upon connection verification, with the remaining 20% after 6 months of service delivery.
  • Kenya Microfinance for Community Water Schemes: Payments occur only after connection verification and several months of service delivery.

Monitoring and Verification

• Most OBA water projects involve independent verification due to GPOBA funding.
• In Uganda, the verification agent reports to the Directorate for Water Development.
• Government involvement is crucial for monitoring, especially where local capacity is limited.
• Development partners often assist in monitoring and verification for small local providers.

Emerging Lessons

• Tariff reform is essential for the sustainability of OBA schemes, as tariffs must be affordable and cover operating costs.
• Private capital leveraging depends on the ability of tariffs to absorb investment costs.
• Access to finance remains a challenge, particularly for small local providers.
  • Guarantees and credit lines are being tested to ease financial constraints.
  • Phased payments help reduce the need for large pre-finance capital.
• Demand creation is critical, as poor communities may be unfamiliar with connection and payment procedures.
  • Community mobilization and outreach by NGOs improve uptake.
• Capacity building is needed for both public and private actors to implement and monitor OBA schemes effectively.

Critical Success Factors

• Market structure and competitive processes encourage efficiency.
• Legal and regulatory frameworks support OBA, including tariff-setting policies.
• Implementation capacity of agencies is vital for transaction processes, monitoring, and fund management.
• Experience with the private sector in service delivery enhances the effectiveness of OBA.

Conclusion

OBA schemes are showing promising results in increasing access to water and sanitation for poor households. However, their sustainability is closely tied to the broader sector environment and policy context. To scale up and mainstream OBA, development partners must support policy and institutional reforms, and ensure legal and regulatory frameworks that enable private sector participation and risk-taking.

References

• Azuba, C., J. Mugabi, and Y. Mumssen. 2010. "Output-Based Aid for Water Supply in Uganda: Increasing Access in Small Towns." OBApproaches 35.
• Mandri-Perrott, C. 2008. "Output-Based Aid in India: Community Water Project in Andhra Pradesh." OBApproaches 21.
• Mandri-Perrott, C., M. Schiffler, and A. S. Aguilera. 2009. "Output-Based Aid in Honduras: An OBA Facility for the Water and Sanitation Sector." OBApproaches 29.
• Menzies, I., and M. Suardi. 2009. "Output-Based Aid in the Philippines: Improved Access to Water Services for Poor Households in Metro Manila." OBApproaches 28.
• Mumssen, Y., L. Johannes, and G. Kumar. 2010. Output-Based Aid: Lessons Learned and Best Practices. Washington, DC: World Bank.
• Virjee, K. 2010. "Leveraging Private Sector Finance for Rural Piped Water Infrastructure in Kenya: The Use of Output-Based Aid." OBApproaches 30.