GPOBA was initially founded to implement output-based aid, targeting low-income households and communities. While OBA has proven to be a successful type of development financing over its 15 years of operation, GPOBA has discovered that more complex and changing environments require more flexible financing solutions to meet impact objectives.
The report covers highlights of this fiscal year of 2018 (July 1, 2017 to June 30, 2018), in which GPOBA commemorates its 15th anniversary, along with a review of the progress towards achieving the partnership's goals of designing and implementing OBA pilot projects, building a Center of Expertise, piloting other results-based approaches, and communicating with the development community.
The World Bank Group—along with international and local nongovernmental organizations (NGOs)—is a longtime partner of the Bangladesh government in improving access to sanitation. Strong progress has been achieved, and the Bank Group continues to support the government’s initiatives, particularly by mobilizing the country’s well-developed microfinance sector.
This note describes efforts by the government of Kenya, the World Bank and other development partners to improve access to commercial finance for water and sanitation projects, within the context of sector reforms and innovative financing initiatives.
Output-based aid (OBA) is helping low-income households in rural Bangladesh access microloans to invest in hygienic sanitation facilities. The OBA grant subsidizes the cost of the facilities, reducing the overall cost for cash-constrained households, and the microloans help them to spread repayment over time.
Around 95% of Sri Lankans have access to basic sanitation. Yet, the growing urban population and density pose a challenge of ensuring safe sanitation consistently. The Government of Sri Lanka is committed to ensure all people using safely managed sanitation services by 2030. This requires new approaches and smart solutions.
In Ghana, output-based aid (OBA) was used to improve affordability for households in crowded low-income areas of the Greater Accra Metropolitan Area (GAMA) to invest in improved household toilets. OBA was provided as a subsidy to reduce the upfront cost for toilets and stimulate demand, which in turn made it more attractive for financial institutions to enter this market.
In Ghana, blended finance helped improve affordability for rural Ghanaian household investments in off-grid renewable energy technologies. Local banks extended credit blended with concessional finance from the World Bank to rural low-income households for acquisition, installation and maintenance of solar home systems (SHSs).
In 2015, the Global Partnership on Output-Based Aid (GPOBA) approved a US$4.95 million grant to increase access to grid-based electricity services for 22,000 low-income households and 5,000 micro and small enterprises (MSEs) in urban and peri-urban areas through use of targeted subsidies, with the aim of reaching low-income communities who would otherwise have gone unserved.
In 2011, GPOBA provided a grant to the local power utility, Liberia Electricity Corporation (LEC), to ensure broad-based and inclusive access to electricity and significantly improve living conditions among the poor in low-income households in Monrovia.