This working paper aims to identify practical ideas for advancing the use of innovative financing mechanisms focused on results and performance, with a view to supporting the delivery of sustainable sanitation services. To this end, the document reviews:
- The rationale for examining Results-Based Financing (RBF) instruments for sanitation;
- Current issues with sanitation, where “misaligned incentives” mean that inadequate services are being provided or demanded;
- How public funding, if allocated based on results, could help with realigning incentives; and
- Common issues and challenges with the design of RBF instruments.