OBA Schemes can take a variety of forms, depending on the nature of the service and the rationale for public funding. Well-designed schemes promise to sharpen the targeting of development outcomes, improve accountability for use of public resources, and provide stronger incentives for efficiency and innovation. OBA approaches can also help to mobilize private financing in support of development objectives. Examples of possible applications include:
- When a goal is to expand access to network services, disbursements may be tied to the number of new connections made.
- When a goal is to bring retail prices in line with costs, declining transition subsidies may help ease tariffs towards cost recovery levels.
- When a goal is to enhance competition and performance between service providers, voucher-type arrangements may allow consumers a choice of provider.
- When a goal is to improve the affordability of ongoing consumption for an underserved group, funding may be tied to services delivered to eligible beneficiaries.
Read More:
|
