In 2009, a pilot project was initiated with support from the World Bank's Water and Sanitation Program (WSP). This pilot aimed to leverage private sector resources and help poor households in rural areas access affordable, high-quality sanitation facilities from local businesses.
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.
In Bangladesh, a blended finance approach has been used to extend access to off-grid electricity for rural low-income households. An output-based aid (OBA) grant in combination with microcredit from local partner organizations (POs)—mostly nongovernmental organizations (NGOs) with experience in microfinance—enhances affordability of clean energy technology for low-income consumers.
Given the significant financing gap to meet the needs of developing countries and achieve the United Nations’ Sustainable Development Goals*, governments, multilaterals and other development partners are increasingly looking to the private sector to help fill this gap.
The webinar will discuss the project in detail, examining how OBA is being used to maximize finance for development to address sanitation challenges in Bangladesh.
Webinar organized by the World Bank's Global Partnership on Output-Based Aid (GPOBA) on the use of results-based financing in providing renewable energy as an alternative to fossil fuels to power irrigation water pumps.
In 1997, when Dr. Fouzel Kabir Khan became the CEO of Bangladesh’s newly inaugurated Infrastructure Development Company Limited (IDCOL), he wasn’t at all sure the new venture would work out—particularly after he heard that his counterpart in Pakistan was now in jail.