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Output-Based Aid in Infrastructure: A Tool for Reducing the Impact of Corruption
Corruption in infrastructure leads to big losses. Estimates of the share of construction spending lost to bribe payments around the world range from 5 percent to more than 20 percent. It is important to reduce the financial cost of corruption by limiting bribe payments. But even more important is to ensure that corruption does not reduce the quantity and quality of infrastructure provision.
OBA in Senegal: Designing Technology-Neutral Concessions for Rural Electrification
Nationwide, only 30 percent of households in Senegal have access to electricity. Rural electrification is even lower at 12.5 percent of households, and limited to areas around large population centers and some tertiary centers.
Output-based Aid in Colombia: Connecting Poor Households to Natural Gas Service
Natural gas connections could bring substantial benefits to poor households in Colombia. Compared with other fuels typically used for cooking, natural gas is safer, less expensive, and less environmentally damaging. But even though gas is more affordable, connection fees can put the cost of switching to this fuel out of reach for poor families.Output-Based Aid in Mongolia: Expanding Telecommunications Services to Rural Areas
Access to telecommunications services has been extremely limited in the remote and sparsely populated areas of Mongolia. Several factors have conspired against achieving universal access on a purely commercial basis—the country’s vast and challenging geography, the nomadic lifestyle of the rural population, government ownership and incumbent control of the long-distance transmission network.
Performance-based Contracting in Health: The Experience of Three Projects in Africa
Performance-based contracting in health is an example of an output-based approach to improving health service delivery. In 2003 and 2004, GPOBA supported the design of three output-based aid (OBA) schemes using performance-based contracting in Uganda, the Democratic Republic of Congo, and Rwanda.
Output-Based Disbursements in Mexico: Transforming the Water Sector in Guanajuato
A project in the Mexican state of Guanajuato shows how tying disbursements to specific outputs can provide incentives for effective implementation of a water sector strategy. The disbursements, from pooled government and World Bank loan funds, are made against connections to safe and reliable water service and improvements in utilities’ efficiency and wastewater treatment.
Targeting Subsidies Through Output-Based Aid
Output-based aid (OBA), or performance-based grants, can be used to help target services to the poor. Under OBA schemes, service providers are compensated only after delivery of a specified output, such as water connections, to a targeted beneficiary. In most cases that targeted beneficiary would be a poor household or community.
Output-Based Aid in India: Community Water Project in Andhra Pradesh
Providing safe drinking water to poor families in the coastal area of Andhra Pradesh is critical for the economic development of the region as well as to improve health and living conditions.Output-Based Aid in Telecommunications: New Models for Universal Access in Latin America
During the 1990s many Latin American countries developed universal access programs, financed through universal service funds, to increase telecommunications access in rural and low-income areas.
Designing OBA When There is an Incumbent
This working paper aims to provide practical guidance to Government officials and others who are asked to design Output Based Aid (OBA) projects in situations in which there is an existing supplier.