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Output Based Aid in the Philippines: Improving Electricity Supply on Remote Islands

OBApproaches Number: 10
Author(s): Sanjay Grewal, Shobana Venkataraman, Julie Bayking, Alfonso Guzman, and Seini O'Connor

The Philippines has introduced an output-based aid (OBA) subsidy scheme to improve electricity supply on remote islands as a way to enhance living standards in the poor communities there. The subsidy, to come from a national fund financed by a surcharge on all electricity users, will be paid to private generators selected through competitive bidding, and disbursed on the basis of the energy they supply.

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