This case study is part of a series prepared by the World Bank’s Global Partnership for Results-Based Approaches (GPRBA). The objective is to highlight project components that have enabled GPRBA to successfully deploy Results-Based Finance (RBF) approaches for the provision of basic services to low-income communities, with efficiency, transparency, and accountability.
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.
GPOBA has collaborated with the World Bank/IDA to help meet Bangladesh’s increased demand for electricity. "To preserve the environment and power up isolated off-the-grid areas, the country has invested heavily in green energy through solar home systems, solar irrigation pumps, and solar mini-grids.
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.