Tag Archives: payment by results

DFID turns to “Payment by Results” for rural water supply in Tanzania

Turning money into water has always been the goal of water sector donors. They have money, and they want to use it to improve access to clean and safe water. Sounds simple enough.

But as my colleagues at Twaweza found in a recent policy brief, not much progress has been made on rural water supply in Tanzania, despite a massive increase in spending in the sector. Money flowed, but water only trickled.

Turning money into water? (from WaterAid, around 10 years ago)

Turning money into water? (from WaterAid, around 10 years ago)

In truth, it’s far from easy. Getting the engineering right is only one part of the challenge – managing funds correctly, avoiding corruption, deciding which communities should be prioritised, and maintaining newly water constructed waterpoints all add to the difficulty. This blog has documented many of these challenges over the past few years, particularly the struggles of the $1bn Water Sector Development Programme.

So the folks at DFID have come up with a new approach, called Payment by Results, or PbR, which they are about to start applying to rural water supply in Tanzania. And they’re backing it with big money: £150m (Tshs 400bn/-) over 5 years. Continue reading