User:Fbrand/OBA Morocco

Output-Based Aid in the Water Supply and Sanitation Sector in Morocco
In 2007, the private concessionaires in Casablanca and Tangiers and the public water utilities of Meknes began to implement water supply and sanitation pilots on the basis of an innovative output-based aid approach to extend water and sewer connections to 11.300 households in poor, unzoned, periurban neighbourhoods. The pilots are part of a governmental reform program focusing on improvement of water supply and basic sanitation services and are funded through a US$ 7 million grant by the Global Partnership for Output-Based Aid. It is the first time in the world that a public operator has been involved in a Global Partnership on Output Based Aid (GPOBA) project. In absolute numbers, the average subsidy level per connection amounts to USD 169 to water supply and to USD 606 to sanitation respectively. The total average subsidy level per connection is 35 percent. Furthermore, the strictly demand driven approach required operators to develop awareness raising campaigns for sanitation. Dedicated teams go to market places to record the demands of beneficiaries. Building on the previous governmental “Social Connection” schemes, the output-based aid approach consists of a subsidy mechanism and is dedicated to individual eligible households agreeing to pay the operator-specific beneficiary contribution. The investments are prefinanced by the operators, who are only being reimbursed by the donor when a verification process certifies that the households have actually been connected. The project experienced a slow start in its first year with only about 2000 connections built (15% of the programme’s 3-year objective). However, the midterm review confirmed 2008 important benefits to households such as time savings, reduced health costs and improved hygiene practices. According to the World Bank, the output-based aid approach has helped to improve processes, overcome financing obstacles and mobilize stakeholder partnership.