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This technical assistance facilitated establishing an entity to manage an Output‐Based Aid (OBA) facility for the water sector on a national scale.
The National OBA Facility built on a GPOBA pilot project that provided safe drinking water for poor families in Metro Manila.
This activity built a commitment for a National OBA Facility for the water sector.
A workshop in Manila (April 13‐16, 2010) discussed the results of a study detailing the program's implementation.
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About 330 participants joined a three-day international webinar (half-day each) on performance measurement and intergovernmental fiscal transfer on February 22-24, 2021. Representatives from five key Indonesian government institutions* engaged in discussions on improving services through performance assessment, performance benchmarking, data analytics, and an overview of performance measurement systems in Indonesia and Australia. The governments of Indonesia, the Philippines and Australia organized this event, which was the result a GPRBA technical assistance (TA) activity initiated in 2014 to support Indonesia's Local Government and Decentralization Project (LGDP) to expand and scale up verification mechanisms to measure outputs and outcomes of fiscal transfer spending.
The webinar marked an important milestone to further institutionalize the reforms within the Indonesian government, as well as a key foundation to advance the performance measurement system. This GPRBA TA has demonstrated the sustainability of the output verification mechanism by utilizing Indonesia’s own independent auditor (BPKP) and thereby achieving one of GPRBA’s main objectives to mainstream output-based aid/results-based financing in World Bank client country systems. The goal is to connect more countries to learn from governments with well-established performance measurement systems such as the Australian example while sharing Indonesia’s achievements.
As a follow-up to the webinar, a Focus Group Discussion was establised to facilitate brainstorming sessions among key representatives from the ministries to develop a draft roadmap for the infrastructure grant performance measurement system improvement in Indonesia. A follow-up learning and knowledge exchange is also being explored with the South African government on infrastructure grant scheme best practices, associated results framework and measurement.
For more details, read a summary of this webinar and training event "Measure-and-Benchmark Subnational Government Performance for better Public Service Delivery: Lessons from Australia and the Philippines"
*Ministry of Finance, Ministry of Home Affairs, Ministry of Public Works and Housing, National Development Planning Agency (Bappenas), and the National Government Internal Auditor (BPKP)
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This activity funded a training course to build OBA awareness within the donor community in the Philippines. The training discussed scaling up OBA and how OBA fits within results-based financing. The interactive course included real case studies, exercises and discussions -- and was taught and facilitated by subject matter experts from GPOBA.
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This technical assistance helped the Department of Energy assess the potential for developing an OBA scheme for solar homes systems on a large scale.
Activities included:
1) A review of existing government programs to increase access, including those that have used output-based approaches.
2) Identify the key issues to be addressed in meeting the GOP policy objective of connecting around 3-million households by 2017.
3) OBA subsidy approaches that are feasible for implementation and that have the potential to support a high rate of connections.
4) Recommendations for an optimal approach and identify key next steps (including ensuring consistency and coordination with GOP’s OBA strategy).
This activity advised the Philippines' Department of Energy on options for sustainable business models, policy and regulatory frameworks for the provision of Solar Home Systems (SHS) as part of the government's broader rural electrification program.
The preferred option likely to have had the highest potential to deliver the required scale of connections and to ensure sustainability in meeting the government's targets was the provision of SHS by the electric cooperatives as part of their regulated business, under a fee for service model.
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The objective was to document OBA project lessons in improving water access of poor household in the East Zone of Metro Manila and determine the sustainability of the program. The work would feed into the design of a scale-up program of the Government of the Philippines and the Implementation Completion Report that was under preparation.
Specifically, this project would determine:
The benefits of providing subsidized piped- water supply connections to low-income households;
Outcomes and impacts of providing subsidized piped-water supply connections to low and poor income households specifically to women and children;
If the provision of subsidized piped-water connections to poor-income households is sustainable; and
Factors contributing to or that would influence the sustainability of providing subsidized piped-water supply connections to poor households.
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The objective was to prepare the Implementation Completion Report (ICR) for the Manila Water Project.
Activities included:
Providing a systematic account of the performance and results.
Evaluating the performance by the Bank, implementing partners, and stakeholders;
Capturing lessons for future GPOBA projects in the Philippines; and possibly
Recommending a scale-up of an OBA approach in the water and sanitation sector.
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The goal was to operationalize a regulatory framework for electricity supply through solar home systems, as one option for electricity cooperatives in the Philippines. Such a framework would support the Government of the Philippines policy to achieve 90% household
electrification by 2017.
Two activities consisted of:
- dissemination support of the policy framework, rulemaking and tariffsetting petitions to ERC by an international regulatory advisor;
- legal support to Philippine Rural Electric Cooperatives Associations (PhilRECA) for finalizing the draft petition and the accompanying rules.
The Circular of the Department of Energy on subsidy policy and the fee-for-service model for SHS development was drafted.
The Rural Electric Cooperatives (Philreca) filed with the Energy Regulatory Commission the supplemental petition incorporating the proposed SHS tariff to the petition on rules for setting the SHS tariff.
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This TA supports the development of a unified financing framework for the water and sanitation sector in the Philippines (UFF). The proposed solutions are expected to include the financing based on the achievement of pre- agreed outputs.
The TA was completed in conjunction with support from the Australian government. A discussion was held with the government during the World Bank Spring Meetings on the proposed Unified Financing Framework, and a comprehensive report and video presentation was delivered to the National Economic Development Authority of the Philippines (NEDA) in June 2015.
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The activity aims to ensure the finalization of preparation and readiness for implementation of the Access to Sustainable Energy Project (ASEP) which includes $3 million from GPOBA and $18 million from the EU. The objective of ASEP is to increase access to electricity in the Philippines in a sustainable manner.
Lessons learned from the design and implementation of the previously GPOBA-funded Bolivia SHS and the Myanmar National Electrification Project ICB documents have been successfully incorporated in the Philippines ASEP – PV Mainstreaming bidding documents. A consultative process with potential bidders was conducted to better assess the interest in the market and potential barriers. The bidding process for the selection of supply and installation contractors took place during the reporting period. The process targeted the installation of 10,000 SHS in the concession area of four Electric Cooperatives. The bidding process was closed in June 2017 and the contract award is in the finalization stage.
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Photo: Saul E Gonzalez / World Bank
Despite increases in access to electricity over the last two decades, approximately 1.1 billion people—still lacked access to electricity in 2014. While urban areas tend to be more electrified due to their proximity to grid connections, most of the world’s population without access to electricity lives in rural areas.
The Sustainable Development Goals adopted in 2015, strives to have universal access to affordable, reliable, sustainable and modern energy for all by 2030. The Global Partnership on Output-based Aid (GPOBA) supports this energy access goal using innovative financing solutions that link funding to actual results achieved. Results-based Financing (RBF) approaches provide access to basic services like energy for low-income families and communities that might otherwise go unserved.
Experience from GPOBA work suggests designing subsidies focusing on results encourages efficiency through good targeting of subsidies and creating incentives for Service Providers to deliver in a timely manner and at lowest cost. Therefore, by bringing together public and private sector funders to maximize resources, and designing effective incentives for service providers to reach underserved low-income communities, results-based financing approaches can give people the chance to improve their life.
GPOBA has been supporting projects using renewable energy to expand access to low-income communities since 2005 and has achieved results and lessons that are being used to design similar projects in different countries.
In Bangladesh, GPOBA has partnered with the Government of Bangladesh, the Infrastructure Development Company Limited (IDCOL) and other donors to increase access to clean energy for targeted rural areas through different renewable energy technologies. The project makes clean energy affordable to low-income households through off-grid solutions by buying down the capital cost of solar home systems (SHS) and mini-grid connections and facilitates investments in solar-pumped irrigation to farmers, reducing the negative fiscal and environmental impact of diesel pumps. While the solar-based aspect is the main feature of this project, the grant also helps improve family health by providing clean cooking solutions through biogas plants. The project has already impacted the lives of 3.6 million beneficiaries in Bangladesh and has served as a lesson for many other countries.
In Mali where the rural population remains dispersed, extending the national electricity grid in a financially sustainable manner is a major challenge. GPOBA grant has been used to co-finance Mali’s Rural Electrification Hybrid System Project, which provides incentives to private operators to increase access and make connection packages affordable to the rural and low-income communities using mini-grid and Solar Home System technologies.
Another project in the Philippines supports low-income families in remote and conflict affected areas of the country to have access to solar energy under the Access to Sustainable Energy Project. The project is implemented in partnership with the Department of Energy of the Philippines and the European Union. The project, implemented by the private LGU Guarantee Corporation, in partnership with Electric Cooperatives, selects private contractors to supply and install the solar home systems (SHS) and GPOBA funds disburse upon verification that SHSs have been installed and are functioning.
A recent impact study conducted to analyze the impact of improved access to energy shows that SHS adoption leads to welfare gains, such as: saving money, improving meal preparation conditions, reducing incidence of gastrointestinal and respiratory diseases, expanding study time for children, increasing mobility and security, and allowing more efficient use of time for women.
Related (useful) links
Output-Based Aid for Energy Access (OBApproaches 52)
Bangladesh Rural Electrification and Renewable Energy Development- SHS Project (Lessons Learned 10)
Surge in Solar-Powered Homes Experience in Off-Grid Rural Bangladesh
Output-Based Aid in Bangladesh: Solar Home Systems for Rural Households (OBApproaches 42)
Output-Based Aid in Mali Rural Electrification Hybrid System Project (OBApproaches 45)