Independent Verification in Results-Based Financing

OBApproaches 43
With pressure for greater accountability and value for money in public budgets, widening the use of results-based financing (RBF) and setting up adequate independent mechanisms to verify results is becoming increasingly important. In January 2012, the World Bank launched the Program-for-Results (PforR), an innovative financing instrument that disburses funds upon delivery of verified results in developing country programs. Until now, the use of independent verification has been limited to outputbased aid (OBA), which is one of the RBF modalities; however, there is potential for more widespread use of independent verification. This note highlights lessons from projects funded by the Global Partnership on Output-Based Aid (GPOBA) and the World Bank, and discusses elements that can best ensure the independence and effectiveness of a verification system.