"Supporting the Delivery of Basic Services in Developing Countries"
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OBA Connections 2017 / Vol. 4, #7
From the Head of GPOBA

This first edition of OBA Connections for 2017 focuses on Innovation in the use of Results Based Financing approaches. 
Our special features include the winner of GPOBA’s 4th Annual Inn-OBA-tions Award, the Nepal Village Micro Hydro Project, which uses the RBF instrument to support climate change mitigation, adaptation and sustainable community development. We also introduce the recently signed OBA Sanitation Microfinance Program in Bangladesh which makes clean and safe sanitation affordable to poor households. Finally, we present a range of resources on Innovations in Development Finance and videos highlighting award winning RBF/OBA projects. As always your feedback and suggestions are welcome.   
 

Catherine Commander O'Farrell
cofarrell@worldbank.org
SPECIAL FEATURES
Innovation @ GPOBA 

GPOBA uses RBF/OBA for innovative projects and financing basic services in poor communities. Read more about the work GPOBA has been doing to stimulate innovation in the last 14 years. 
Nepal Village Micro Hydro Project Wins GPOBA's 2016 Inn-OBA-tions Award 

Using micro-hydro technology, the project installed 433 micro run of river hydropower plants, which allowed rural communities in Nepal access electricity. The project is earning results-based carbon revenue that is being reinvested to finance new micro hydro plants and rehabilitate existing ones (watch a video produced by UN). 
GPOBA Funds an OBA Sanitation Microfinance Program in Bangladesh

This OBA Sanitation Microfinance Program aims to make clean, safe sanitation affordable and accessible to poor households in Bangladesh through hygienic sanitation latrines.  
MULTIMEDIA SHOWCASING INNOVATIVE RBF PROJECTS
MAJI NI MAISHA - Innovative Finance for Community water schemes in Kenya 
 
In Kenya, the story of an innovative project using a blend of commercial finance and an output-based subsidy, shows how this mechanism is increasing access to clean and reliable water supply for rural communities.  
 
RBF in Zimbabwe: Teclar's Story 
 
The Zimbabwe health sector project used an Innovative RBF mechanism to address health care supply-and-demand issues in a challenging environment. The project combines pay-for-performance, vouchers and a pay-for-quality scheme, and has strengthened the health system’s response to maternal, neonatal and child health needs.  
Developing a Nutrition-based Social Safety Net Program in Djibouti 
 
The Djibouti Health Sector Project uses an Innovative Nutrition Program which has brought the Health Sector Improvement Plan and Social Safety Net Project together to improve child nutrition in the country. This project had been selected as a finalist for GPOBA’s 2016 Inn-OBA-tions award.
KNOWLEDGE AND PUBLICATIONS ON INNOVATIVE FINANCING
Scaling Up Blended Financing of Water and Sanitation Investments in Kenya
 
Recent sector reforms and innovative financing initiatives undertaken by the government of Kenya has helped improve access to commercial finance in the water and sanitation sector. We have published the lessons that have been drawn in this publication. 
GPOBA Lessons Learned Publications 
 
GPOBA has produced lessons learned publications for the Energy, Education, Health, Water and Sanitation sectors in various regions drawn from the projects supported. Access these materials on the GPOBA website.
FINANCIAL INNOVATION
Innovative Financing for Development 

Results-based financing is just one part of Innovative Financing instrument and mechanism. This study conducted by the AfD, Citi Foundation, Global Development Incubator and Dalberg looks at the broad range of innovative financial instruments and assets including RBF and explores each one in depth.  
 
Innovative Finance: "Shaping the next generation of financing solutions to unlock private capital for social good."

The Rockefeller Foundation is pursuing innovative finance solutions and mechanisms that deliver positive social, economic, and environmental outcomes. This article highlights its portfolio which includes an Extreme Climate Facility, a financing model called UNITLIFE to combat chronic malnutrition, Social Impact Bonds and a Social Success Note.  
 
The Next Frontier of Climate Change Resilience

The Huffington Post produced a series of articles on climate-change issues as part of CoP 21. This article focuses on the untapped opportunity we have to use new financing mechanisms like blended investments (e.g. catastrophe bonds) that could help cover part of the annual $200-300 billion needed to help countries combat climate change shocks.  
 
OBA/RBF COMMUNITY OF PRACTICE
OBA/RBF Community of Practice

Visit the OBA/RBF Community of Practice platform for additional information on output-based aid and results based financing. Exchange ideas, engage with practitioners and share knowledge. More...
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