Output-based Aid in Cambodia: Getting Private Operators and Local Communities to Help Deliver Water to the Poor - The Experience to Date

The output-based aid (OBA) OBA pilot in small towns in Cambodia, funded by the World Bank, was one of the first OBA water supply pilots to be initiated. The project was initially hailed as a success, but has not to date delivered the expected results, especially in terms of private sector leveraging. The reasons for this are various and include deficiencies in the contractual arrangements and bidding processes/variables, and the lack of capacity of the operators.

This working paper provides insights into the initial lessons learned from the OBA pilot which are particularly interesting because of the possible comparison with more input-based schemes ("Design Build Lease" arrangements) undertaken at the same time and also funded by the World Bank.