Identifying the Potential for Results-Based Financing for Sanitation

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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:

  1. The rationale for examining Results-Based Financing (RBF) instruments for sanitation;
  2. Current issues with sanitation, where “misaligned incentives” mean that inadequate services are being provided or demanded;
  3. How public funding, if allocated based on results, could help with realigning incentives; and
  4. Common issues and challenges with the design of RBF instruments.

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