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This technical assistance activity supported Mexico's National Water Commission (CONAGUA) development of detailed institutional, financial and technical procedures for mplementing an RBF pilot approach within a US$100 million World Bank loan and sought to improve efficiency in delivering reliable water and sanitation services to poor households.
Activities included:
- Detailed framework for RBF pilot sub-project in the water supply and sanitation.
- Technical assistance to 1-2 public utilities to prepare their participation in the RBF pilot.
After the Mexican government reviewed the RBF operational manual supported by this TA, a decision was made to not add an RBF component into the existing World Bank loan but instead to consider preparing a new RBF program that the World Bank might support.
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Overview
This TA supported the design and implementation of the Oaxaca WSS Sector Modernization PforR, particularly:
- Preparation of the DLIs matrix, incl. definition, targets, verification protocol; definition of the Program’s activities to achieve the targets of the DLIs; implementation of the Program Action Plan;
- Definition of the result-based disbursement mechanism; preparation of the Terms-of-Reference of the results Independent Verification Agent;
- A note with the Program-for-Results (PforR) Program factsheet and lessons from its preparation.
All activities completed and paid for as planned, including the South-South knowledge exchange between two subnational PforR projects supported inter alia by TA of GPOBA, namely Oaxaca PforR of Mexico and Ceará PforR of Brazil. TA supported activities as planned and the PforR was approved. The Oaxaca PforR project continued with some challenges and was subject to a possible restructuring for treasons unrelated to GPOBA-supported deliverables.
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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.