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Estimating the Fiscal Risks and Costs of Output-Based Payments
Output-based payments are an important tool of government policy. Sometimes governments offer “output-based aid” to subsidize services sold to households. Guatemala and Mozambique, for example, subsidize new electricity connections, while Paraguay is piloting a program to subsidize new water connections.Output-Based Aid in Water: Lessons in Implementation from a Pilot in Paraguay
Paraguay's aguateros—small private water companies— form an important part of the water sector, serving about 9 percent of the total population (or about 17 percent of those with piped water supply). But until recently they operated only in urban areas, where water resources are abundant and they could choose customers based on their ability to pay the full costs of providing service.
Output-based Aid and Carbon Finance
Carbon finance is an output-based approach to mitigating climate change.
Output-Based Aid in the Philippines: Improving Electricity Supply on Remote Islands
The Philippines has introduced an output-based aid (OBA) subsidy scheme to improve electricity supply on remote islands as a way to enhance living standards in the poor communities there.
Output-Based Aid in Health: The Argentine Maternal-Child Health Insurance Program
To fight infant mortality in the poorest provinces of Argentina, local authorities and the World Bank set up the Maternal-Child Health Insurance Program in 2004.
Output-Based Aid in Bolivia: Balanced Tender Design for Sustainable Energy Access in Difficult Markets
Bolivia is implementing an innovative public-private approach to increase rural electricity access to extremely remote areas via Solar Home Systems (SHS). Novel Medium-term Service Contracts (MSCs) balance the Government’s wish for sustainable service and maximum control with providers’ aim for minimal risk exposure.
Output-based aid in Uganda: Bringing Communication Services to Rural Areas
In 1999, Uganda had achieved a national teledensity (fixed and mobile) of about one telephone per 100 inhabitants, slightly above the average for Sub- Saharan Africa (excluding South Africa). But with most phone lines concentrated in the Kampala area, rural teledensity was far lower. Indeed, only 380 of the 920 subcounties in Uganda were expected to have any kind of telephone service by 2001.
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.