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In January 2003, the United Kingdom's Department for International Development (DFID) and the World Bank established the Global Partnership on Output-Based Aid (GPOBA), a multi-donor trust fund administered by the World Bank. The goal of GPOBA is to provide increased access to reliable basic infrastructure and social services to the poor in developing countries through the wider use of OBA approaches. GPOBA will demonstrate and document OBA methods of supporting the sustainable delivery of basic services (water, sanitation, electricity, telecommunications, transportation, health and education) to those least able to afford them and to those currently without access.

A new window of opportunity has opened for output-based aid projects. In March 2005, DFID approved a £20 million Challenge Fund (or, Window 3 of GPOBA's mandate), whereby GPOBA will be able to expand the existing scope of its activities to include the funding of subsidy payments for pilot tests of OBA approaches in the infrastructure sectors. Effective use of Window 3 could lead to significant scale-up of OBA approaches through the piloting of subsidy payment schemes with secured funding via grant agreements with GPOBA.

In June of 2006, The International Finance Corporation (IFC) joined GPOBA as a donor. The IFC has pledged for projects in the infrastructure, health and education sectors that involve the private sector.

1. Funding of output-based payments under OBA schemes to facilitate the piloting of innovative, small-scale projects.
   
2. Studies and other inputs to assist in the design, implementation and evaluation of particular schemes intended to pilot the application of OBA approaches to the delivery of eligible services
   
3. Publications, workshops and conferences to help identify and disseminate emerging knowledge on issues relating to the role and application of OBA approaches.

GPOBA's Operating Principles updated December 2006 (PDF, 113 KB)

* [last updated September  29, 2008 ]

Donors

The World Bank
Department for International Development (DFID)
International Finance Corporation (IFC)
Netherlands Government
Australian Government Overseas Aid Agency (AusAID)
Swedish International Development Cooperation (Sida)