DFID s Approach to Payment by Results

Transcription

1 DFID s Approach to Payment by Results

2 Content 1. Results, Results, Results 2. One way to get results - Payment by Results 1. DFID Definition 2. DFID action 3. Examples of practice 4. Evaluation and learning 3. Not just results but value for money

3 Results, Results, Results Allocations Business Processes decisions, reviews Evidence and Evaluation Data results frameworks Scrutiny Innovative mechanisms

4 100% funding upfront 100%funding upon delivery Context: Linking payments to performance DFID is increasingly moving away from upfront input financing and linking payments to results and performance. Performance based financing Payment by results Traditional input financing Input Output Outcome e.gs. Performance financing (performance tranche) Procurement reform

5 What is PBR? 1. Payments based on pre-agreed results. Paying for development outcomes, not inputs 2. Recipient discretion on how to achieve results. 3. Independent verification of results as the trigger for disbursement. =

6 Funder Recipient Shared desired outcome Negotiate a MoU/contract detailing: indicators of results, payment structure, measurement of unit price Publicly disseminate contract Incentive Implementation Inputs Processes Innovation Robust independent verification of results Publicly disseminate results Disbursement of funds Unit price x results target achieved = payment

7 Types of PBR: DFID pilots DFID distinguishes different types of PBR depending on who we transfer risk to. TYPE NEWER Results based aid Results based financing NEWEST Development impact bonds WHO Partner governments Service providers Investors CURRENT e.g.s Ethiopia Education 30m Rwanda Education SBS 9m Uganda Health 8m Clean energy fund 30m Health fund (WB) 110m Infra fund (WB) 37m Girls Education Fund 30m Design stage

8 PBR in practice: Education pilot Ethiopia

9 Textbooks in schools Building new schools Provide coaching for teachers PBR in practice: Education pilot Ethiopia Funder Aligned development result: Improved lower secondary completion Agree indicator of results: Number of students sitting an exam Number of students passing exam Agree payment structure (unit price) Passer Sitter Emrg Non-emrg Emrg Non-emrg Boys Girls Where we are now! Independent verification of results Disbursement of funds: Unit price x number of students sitting exam = payment Publish and announce MoU Partner Time

10 PBR in practice: Education pilot Rwanda

11 Textbooks in schools Building new schools Provide coaching for teachers PBR in practice: Education pilot Rwanda Funder Aligned development result: Improved lower secondary completion Agree indicator of results: Number of students sitting an exam Agree payment structure (unit price) Grade P6 S3 S6 Payment per additional child Additional payment 2014/ Where we are now! Independent verification of results Disbursement of funds: Unit price x number of students sitting exam = payment Publish and announce MoU Partner Time

12 Learning and Evaluation Current evidence base is too weak for general conclusions on efficacy of PBR; more robust, comprehensive and wide ranging testing and evaluation of PBR is needed. DFID is engaged in building the evidence of whether and how PBR works. Good spread of PBR pilots developing, across delivery channels, sectors, countries and various types of PBR. Each of our pilots is independently evaluated. Evaluations and lessons learnt in design and implementation will provide DFID with evidence to take informed decisions about how to progress PBR in the future. DFID to develop PBR strategy by Spring 2014.

13 Evaluation and Learning Key findings from recent DFID funded synthesis study on evaluation and PBR: Start by identifying questions, then consider methodology. Most important question might be identifying mechanisms and sets of circumstances under which PBR approaches may make a positive difference Range of other important questions about PBR identified, e.g. cost effectiveness and comparison with other potential approaches and strategies, appropriate size and nature of incentives, exploration of unintended effects and how they can be avoided/ minimised. Need to explore and describe process by which PBR implemented in practice and reasons why changes from original may be needed.

14 Final thoughts - not just results value for money Evidence Metrics Comparable data Understanding cost as well as results Incentives

15 Thank you