Over the past 17 years, GPRBA has been testing results-based financing (RBF) approaches that link funding to actual results achieved, through a diverse portfolio of projects. Through this experience GPRBA has built evidence on the ability of RBF to mobilize additional resources from private finance, results-based grants and guarantees to deliver basic services to low-income communities. With the creation of the Outcomes Fund, GPRBA continues to innovate in the space of results-based blended finance.
The objective of the Outcomes Fund is to drive improved social, infrastructure, and environmental outcomes for poor and vulnerable populations by supporting outcome-based financing and other results-based blended finance approaches at scale.
The GPRBA Outcomes Fund pools donor funding alongside World Bank lending to help governments pay for results. Equally important, it funds analytical work and capacity building to support government agencies and other stakeholders through advisory and knowledge exchange. Among the sectors covered by the Outcomes Fund are climate, resilience and environment, urban upgrading and provision of basic services, water, sanitation and hygiene, education, employment, and poverty graduation.
This effort is aligned with the World Bank’s agenda on maximizing finance for development to systematically leverage all sources of finance, expertise, and solutions to support developing countries’ sustainable growth. The learning gained will enable the WBG to advise clients and become a knowledge leader in the application of outcome-based financing for achieving the sustainable development goals.
By tying funding to outcomes, outcome-based financing (i) creates strong incentives for service providers to achieve results and (ii) grants service providers the autonomy to adjust implementation in a quest for greater development impact.
"Impact Bonds" -- Learn how GPRBA has applied this form of outcome-based financing.