Results-based Financing for Clean Cookstoves in Uganda
This report was prepared by IMC Worldwide for the Africa Clean Cooking Energy Solutions (ACCES) initiative of the World Bank. The report sets out the opportunity for implementing results-based financing (RBF) to support the clean cookstoves sector...
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| Format: | ESMAP Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/04/19662463/results-based-financing-clean-cookstoves-uganda http://hdl.handle.net/10986/18963 |
| Summary: | This report was prepared by IMC
Worldwide for the Africa Clean Cooking Energy Solutions
(ACCES) initiative of the World Bank. The report sets out
the opportunity for implementing results-based financing
(RBF) to support the clean cookstoves sector in Uganda. The
fundamental idea behind RBF is that payments to a service
provider are made contingent on the delivery of a pre-agreed
result, with achievement of the result being subject to
independent verification. An RBF approach is feasible as
part of a broad package of measures to scale up the
efficient and clean cooking sector in Uganda, the larger
goal being to achieve a range of benefits, including health,
in coordination with the government and key stakeholders.
Results-based incentives should be combined with robust
monitoring and verification arrangements, institutional
strengthening, and awareness-raising campaigns to support
progress in the sector over time. The World Bank is
exploring RBF as a means of sustaining impact through
market-level development. This study focuses on cookstoves
rather than the full value chain (including cooking fuels)
because the disconnect between cookstove suppliers and final
customers is a key bottleneck in the supply chain. Financing
is one of many tools available to support development of the
sector. The main body of the report is structured as
follows. Chapter 2 examines the innovation ecosystem for
cookstoves in Uganda. This includes the main actors and
activities, the market segments for improved cookstoves and
the current penetration of ICS into different geographical
zones of the country. It also looks at the different
products and business models as well as the barriers to
scaling up. Chapter 3 identifies various policy objectives
and grades various RBF options against a set of screening
criteria. The result is a shortlist of RBF options that
could usefully be incorporated into future program design.
Chapter 4 explores initial design considerations for RBF in
this context including eligibility, trigger, payment
structure, size of payment and exit strategy, as based on
the ESMAP report. It covers the possible market responses to
the shortlisted RBF approaches and makes a preliminary
assessment of value for money. Finally, it considers ways in
which RBF approaches might best be implemented on a
practical level. Chapter 5 outlines the recommendations,
summarizing key constraints to scale-up and noting the
complementary measures needed to ensure successful RBF implementation. |
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