Expanding Hygienic Sanitation in Rural Bangladesh with Microfinance

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. The OBA grant also serves as an incentive for local microfinance providers to participate in the program.

This learning note is part of a series developed by the Global Partnership on Output-Based Aid (GPOBA) to analyze and showcase experiences where results-based finance (RBF) has been used to leverage private finance through a blended finance approach.