Design of Innovative OBD Schemes for Water Supply and Sanitation Projects in Two Brazilian States

The project is an assessment of international best practice in results-based programs in the water supply and sanitation (WSS) sector with a specific focus on output-based aid/out-based disbursement (OBA/OBD) type schemes. The results will inform the design of two proposed schemes to be financed by the World Bank and borrowers in the Brazilian states of Pernambuco and São Paulo. The proposed schemes include OBD, and may include other OBA components.

Technical Assistance was approved by DFID

Special attention will be given to projects related to efficiency gains through water loss reduction, innovative practices for buying improved water quality and other service improvements. The Wastewater Treatment Project (PRODES) of the National Water Regulatory Agency (ANA) will also be assessed.

Project uptake has been slow, and the assessment will help to identify reasons for the low response rate and any impacts to date. Further, the WSS sector in São Paulo and Pernambuco states will be subject to review in order to better understand the service coverage gaps for the poor (notably access to sanitation, rural water supply and reliability/continuity of water supply in urban areas). The possible introduction of OBA instruments to address identified service gaps will also be explored.

GPOBA will provide technical assistance (TA) to support the design of innovative OBD schemes for WSS World Bank financed projects in São Paulo (Water Resources Recovery Project -REAGUA) and Pernambuco (Water Sector Sustainability Project PSHPE).

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Marcos Thadeu Abicalil [3]