Applying Results-Based Financing in Water Investments

Given the broad array of issues and the complexity faced by the water sector as a whole (from irrigation to flood protection, to water conservation and hydropower), there is great demand for future exploring the potential of RBF and tackling the questions still unanswered about many of its operational dimensions. This document takes a closer look at some of the practical aspects of implementing various RBF water schemes. Chapter 2 provides an analytical framework to explore if and when RBF can be a viable option, shedding light on some key factors and preconditions that are necessary for RBF to work--with the understanding that it can be used either as an alternative or a complement to a more traditional input-based funding scheme. Chapter 3 then revisits the concepts discussed in the analytical framework through the analysis of various case studies of RBF approaches in different water-related areas. Some of the case studies are based on actual projects already implemented or ongoing, while others are an illustrative elaboration, given the lack of practical cases to use as sources. Chapter 4 presents some conclusions and lessons learned. The key challenges that are likely to be encountered in designing an RBF scheme deal with: the clarity and level of certainty of the relationships from input to output to outcomes (causal links); the ease and availability of measurable indicators; and, consequently, the optimal determination of the necessary incentive(s) to align the goals of the principal with the agents' deliverables. Appendix A presents a glossary of RBF concepts and acronyms. Appendix B presents specific results and indicators which may be relevant for different sectors.

Bibliographic Details

Main Authors:	Rodriguez, Diego, Suardi, Mario, Ham, Marcel, Mimmi, Luisa, Goksu, Amanda
Language:	English en_US
Published:	World Bank, Washington, DC 2014-05
Subjects:	ACCESS TO WATER, ACTION PLANS, AQUIFERS, AUCTION, AVAILABILITY OF WATER, AVAILABLE WATER, BALANCE SHEETS, BUYER, CANALS, CASH FLOW, CASH TRANSFERS, CATCHMENT, CERTIFICATION, CIVIL SOCIETY, CIVIL SOCIETY ORGANIZATIONS, CLEAN WATER, CLIMATE CHANGE, COD, COMMUNICATIONS INFRASTRUCTURE, COMPETITIVENESS, CONNECTION SUBSIDY, CONSTRUCTION, CONTRACT ENFORCEMENT, CONTRACT MANAGEMENT, COPYRIGHT, COST RECOVERY, CROP PRODUCTION, CROP YIELDS, CROSS-SUBSIDIZATION, CUBIC METERS, DISTRICT AUTHORITIES, DRIP IRRIGATION, DROUGHT, E-MAIL, ELECTRICITY, ELECTRICITY CONSUMPTION, ENABLING ENVIRONMENT, END USERS, ENGINEERING, EQUIPMENT, FINANCIAL INSTITUTIONS, FINANCIAL MANAGEMENT, FINANCIAL PRODUCTS, FINANCIAL RISK, FINANCIAL RISKS, FINANCIAL SERVICES, FINANCIAL SUPPORT, FINANCIAL TERMS, FIXED COSTS, FLOOD DAMAGE, FLOOD PROTECTION, FLOODING, FLOODS, FOOD CHAIN, FUNCTIONALITY, GAS, GRAVITY, GROUNDWATER, GROUNDWATER ABSTRACTION, GROUNDWATER USE, HARDWARE, HARMONIZATION, HOUSEHOLD CONNECTION, HOUSEHOLDS, HUMAN CAPITAL, HYDROLOGY, ICT, IMPLEMENTING AGENCY, INDIVIDUAL CONNECTIONS, INFORMATION SYSTEMS, INNOVATION, INSTITUTION, IRRIGATION, IRRIGATION MANAGEMENT, IRRIGATION SCHEME, IRRIGATION TECHNOLOGY, IRRIGATION WATER, LAND USE, LEGAL FRAMEWORKS, LICENSES, LOW-INCOME POPULATION, LOWER LEVELS OF GOVERNMENT, MARKET PRICES, MARKETING, MATERIAL, MUNICIPAL COMPANY, MUNICIPALITIES, NETWORK INFRASTRUCTURE, NETWORKS, NEW MARKET, NEW TECHNOLOGY, NUMBER OF CONNECTIONS, OPEN DEFECATION, OPERATIONAL EFFICIENCY, PERFORMANCE AGREEMENT, PERFORMANCE INCENTIVES, PILOT PROJECTS, PIPED WATER, PIPES, PLUMBING, POLLUTION, PRIVATE COMPANIES, PRIVATE OPERATORS, PRIVATE PARTNERSHIP, PRIVATE SECTOR, PRIVATE SECTOR PARTICIPATION, PROCUREMENT, PROCUREMENT PROCESS, PRODUCTIVITY, PROTOCOL, PROVINCIAL GOVERNMENTS, PUBLIC COMPANIES, PUBLIC WATER, PUMPING STATIONS, QUALITY OF SERVICES, QUALITY STANDARDS, QUERIES, RAINFALL, REGISTRIES, REGULATORY FRAMEWORKS, REMOTE SENSING, RESERVOIRS, RESULT, RESULTS, RIVER BASIN, RIVERS, RURAL VILLAGES, SANITATION, SANITATION FACILITIES, SANITATION SERVICES, SANITATION WATER, SECURE ACCESS, SEPTIC TANKS, SERVICE DELIVERY, SERVICE PROVIDER, SERVICE PROVIDERS, SERVICE PROVISION, SERVICE STANDARDS, SERVICE SUPPLIER, SEWERAGE BILLS, SEWERAGE NETWORK, SEWERAGE SERVICE, SEWERAGE SYSTEM, SLUMS, SUPERVISION, SUPPLY CHAIN, SUPPLY OF WATER, SURFACE WATER, SURFACE WATER RESOURCES, TARGETS, TELEPHONE, TIME FRAME, TRADITIONAL INFRASTRUCTURE, TRANSACTION, TRANSPORT SYSTEM, USE OF WATER, USER, USES, VERIFICATION, VERIFICATIONS, WASTEWATER, WASTEWATER COLLECTION, WASTEWATER REUSE, WASTEWATER TREATMENT, WASTEWATER TREATMENT PLANT, WATER ABSTRACTION, WATER BODIES, WATER COMPANY, WATER CONSERVATION, WATER CONSUMPTION, WATER INVESTMENTS, WATER LAW, WATER LOSSES, WATER PARTNERSHIP, WATER POINTS, WATER PUMPING, WATER QUALITY, WATER RECOVERY, WATER RESOURCES, WATER RESOURCES MANAGEMENT, WATER SCARCITY, WATER SCHEMES, WATER SECTOR, WATER SERVICE, WATER SERVICE PROVIDERS, WATER SERVICES, WATER SHORTAGE, WATER SUPPLY, WATER SUPPLY PROJECTS, WATER USERS, WATER USERS ASSOCIATION, WATER UTILITIES, WATERSHED, WATERSHEDS, WELLS,
Online Access:	http://documents.worldbank.org/curated/en/2014/05/19770307/applying-results-based-financing-water-investments https://hdl.handle.net/10986/20041
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