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Hanoi, Vietnam, November 30, 2007 – The World Bank, acting as an administrator for the Global Partnership on Output Based Aid (GPOBA), signed today a grant agreement with the East Meets West Foundation (EMWF) for US$3 million to provide access to clean water services to 75 low income rural communities in five provinces located in the central part of Vietnam, through an innovative community-based approach, involving public-private partnership.

At signing of EMW Grant Agreement: Mr. John Anner, EMW's Executive Director and Mr. Ajay Chhibber, World Bank's Country Director for Vietnam.

The project is expected to benefit about 150,000 disadvantaged people in the provinces of Quang Nam, Quang Tri, Quang Binh, Quang Ngai and Thua Tien Hue. After a mid-term review scheduled for May 2009, an additional US$2m may be allocated to benefit another 100,000 people.

The project is introducing an innovative Output-Based Aid approach, designed to ensure ownership, demand-driven service provision and set the basis for long term operational and financial sustainability. For each small water scheme, EWMF will be responsible for the pre-financing and the construction. Each eligible low-income household will make a contribution towards the cost of the connection, both in monetary and in-kind forms and commit to pay for the water they consume. The local authorities provide the land necessary to develop the water supply facilities. The innovation is that GPOBA disburses the Grant in the form of a fixed and pre-agreed subsidy, as a reimbursement to EMWF, on the basis of two measurable outputs - the provision of a working household connection, and the delivery of acceptable service for a period of six months.

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News Release No. 2010/4

CONTACTS

In Washington:
Cathy Russell, tel. (+1) 202 458 8124 crussell@worldbank.org

In Hanoi:
Hong Ngan Nguyen, tel. (+84 -4) 3934 6600 ext. 234
nnguyen5@worldbank.org

Hanoi, May 24, 2010 – The World Bank, acting as administrator for the Global Partnership on Output-Based Aid (GPOBA), approved a grant for US$3 million for a scheme to increase access to secondary education for poor girls and boys in Vietnam.

Around 7,500 students in eleven provinces – three in the Northern mountainous area and eight others along the Central Coast and Truong Son Mountain Range – are expected to benefit from the scheme.

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Overview

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In Vietnam, achieving sustainable provision of water services for communities in rural areas has been a challenge for years. About 74 percent of the Vietnamese population is concentrated in rural areas, yet just 48 percent of households have access to clean water, compared with 82 percent in urban areas. GPOBA partnered with the East Meets West Foundation (EMWF) to explore the OBA approach for meeting these rural water challenges. The OBA approach uses an innovative risk sharing mechanism that enhances EMWF’s performance while maintaining high value for money and focusing on sustainability. The success of the project facilitated the right environment for scaling up the OBA approach and encouraged private-sector participation in the construction and management of future water and sanitation schemes, an objective of the national Socialization Policy.

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In Vietnam, large disparities exist in secondary enrollment between advantaged and disadvantaged regions, and there is a large gap between these groups in terms of upper secondary school completion. The disparity stems from low-income communities inability to afford tuition fees.

GPOBA and the World Bank grant supported 11 provinces to provide output-based subsidies to schools through reimbursed tuition fees, subsidizing enrollment of 8,145 students for three years. The project aimed to address persistent inequalities in learning outcomes, attendance, and completion rates by increasing access of poor students to upper secondary education (grades 10–12) in non-public secondary and professional secondary schools. 

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In Vietnam, achieving sustainable provision of water services for communities in rural areas has been a challenge for years. About 74 percent of the Vietnamese population is concentrated in rural areas, yet just 48 percent of households have access to clean water, compared with 82 percent in urban areas. Only 30 percent of small towns have piped water systems, and even then the proportion of connected households can be as low as 20 percent. Many settlements have no water systems, and during the dry season residents have to rely on polluted sources for basic household needs.

Output-Based Aid in Vietnam: Access to Piped Water Services for Rural Households (2.09 MB)
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Au Viet Nam, l’approvisionnement durable en eau des populations rurales pose problème depuis de nombreuses années. En milieu rural, où se concentrent environ 74 percent de la population, à peine 48 percent des ménages ont accès à l’eau potable, contre 82 percent en zone urbaine1. Seuls 30˜ percent des petites villes disposent de réseaux d’adduction d’eau et, même dans ce cas, la proportion des ménages desservis est très faible, ne dépassant pas 20 percent.

Aide basée sur les résultats au Viet Nam: Accès des ménages ruraux aux services d’adduction d’eau (2.09 MB)
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In 2008, GPOBA approved a $3 million grant to support investments in piped rural water supply systems, in conjunction with the government's efforts to operationalize its national Rural Water Supply and Sanitation Strategy.

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The Vietnamese government has made remarkable gains in improving education outcomes since the early 1990s. But disparities in educational attainment – particularly between income groups – remain. GPOBA’s first project in the education sector addressed persistent inequalities in learning outcomes, enrolling more than 8,000 low-income students and lowering dropout rates. Read about the lessons learned from this successful pilot.

This Lessons Learned discusses project insights gathered at the end of this project.