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Transformative RBCF Solutions for the Urban Poor
World Bank Group Technical Dialogue“New Perspectives on International Cooperation:
Carbon Markets and Climate Finance under the Paris Agreement” May 22, 2017
Raluca GolumbeanuCharis Lypiridis
GLOBAL PARTHERSNHIP ON OUTPUT BASED AID ( GPOBA)
GLOBAL REACH
PforR SUPPORT
SUBSIDY PORTFOLIO (active/closed)TECHNICAL ASSISTANCE
WATER, SANITATION, ENERGY, HEALTH, EDUCATION, TELECOM, SOLID WASTE
KEY ACHIEVEMENTS:
Subsidy pilots: 48 ($234m)
Direct Beneficiaries: > 9 million reached
TA/dissemination activities: 177 (=$28 m)
Evaluation and analysis
Knowledge dissemination
CHALLENGES THAT OBA ADDRESSES
Poor people in urban, peri-urban, and rural areas lack access to basic services
Public and private service providers lack incentives to serve the poor
There is a “gap” between the cost of service and user’s ability to pay
No accountability for results
Household Service Provider Gap for PoorHousehold
Connection Cost
AffordabilityLevel
Required GPOBA Investment
Total Connection Cost
Third PartyContribution
Definition: Investment through performance-based payments which is payable upon the achievement of measurable results, and targets to facilitate poor households’ access to basic services
WHAT IS OBA?
CLIMATE AND CITIES AGENDA
Cities are pathways out of poverty BUT poverty is rapidly urbanizing
Cities offer better quality of life BUT the benefits of urbanization for the poor have been fragmented
By 2030, rapid, inclusive, and climate-informed development can prevent most (but not all) climate change impacts on poverty
RBF FOR CITIES IN A CLIMATE-SMART FRAMEWORK Re
sult
s-Ba
sed
Fina
ncin
g
Pro-Poor Planning Indicators
Robust M&E Framework
Evidence-based Design
Results-based
Climate and Infrastructure Finance
Blended Finance and Holistic Urban Programs
Identifying Synergies (Sector, Multi-City)
Knowledge Transfer
Private Capital
Sust
aina
ble
Citi
es
Institutions
Infrastructure
Services
Land
N
atur
eN
etw
orks
Cities Agenda
Planning Financing Connecting
Climate-Smart Solutions
Resilient Design GHG Reductions Environment
RBF PROJECT DESIGN ROADMAPINCLUSIVE AND LOW-CARBON CITY SOLUTIONS
Pro-poor andClimate SmartIntervention
Private Investors Results-basedClimate Finance
Mechanism
Perfomance-Based Consessional Loan or
Grant
Public Funds HouseholdContribution
1. Address affordability levels
2. Strengthen institutions
Cost
In
clus
ive
and
low
-car
bon
city
solu
tion
3. Address the financing gap of poor households
4. Develop climate-smart solutions
5. MobilizePrivate Capital
Project ownership
Policy prioritization
Pro-poorincentive schemes
Leverage of carbon market instruments
OBA IN ENERGYProvide energy access to clean energy solutions to more than 3 million
Scoping studies to assess feasibility of RBF
Impact assessments
198,861
1656
530000
26400
34138
5847
1376
- 100,000 200,000 300,000 400,000 500,000 600,000
Grid
Mini-grid
SHS and pico-PV
Biogas
Gas
Heating
SIP
Verified energy outputs
OBA IN RENEWABLE ENERGY
Pro-poor access
Leveraging private sector participation
Value for money
Partnerships
Fragile environments and scale-up potential
10
Mali Hybrid Mini-grids
AMADER in partnership with 18 selected private operators
Targeting: off-grid areas
Status: about 32,000 SHS and minigrid beneficiaries
Challenges: fragile environment and capacity constraints
Implementation support
Bangladesh Rural Electrification and Renewable Energy
11
IDCOL in partnership with private sector
Targeting: off-grid rural areas
Financing mechanism and Technical assistance
Status: RERED II scale up
4 million SHS installations Technologically diversification Lessons learned Gender mainstreaming
100 KW Solar PV Mini-grid at SandwipIsland financed under RERED
Why OBA?
12
Pro- poor transformational impacts
Leveraging private sector