Tournament Approaches to Policy Reform: Making Development Assistance More Effective

Appendix A: Inventory of Projects

Project A: Output-Based Aid to Increase Coverage of Paraguay’s Aguateros Contact: Franz Drees, Jordan Schwartz, and Alexander Bakalian, the World Bank’s Latin America and the Caribbean Regional Office Description: Given the constraints of the state water utility and the traditional water users’ association model, Paraguayan officials concluded that private providers would be the best means of reaching unserved communities and rapidly expanding rural coverage. The rural water agency, SENASA, agreed to implement a pilot output-based aid program to attract aguateros (small, informal , private water companies) and local construction companies to small towns, large villages, and periurban communities. To meet the minimum requirements for safe, reliable service, private operators were contracted to build water networks (a borehole, disinfection, storage tank, and a distribution system with household connections). Meters were installed at the discretion of the operator unless a customer requested one. Water standards and hours of service were set out in a contract between the community and the operator. Perhaps most important, the operators were required to connect any household within the defined service area that requested a connection and paid the fee. Private operators were awarded the contracts by bidding on the fee they would charge users up front to connect to their system. Once selected, operators could charge users for the connection fee in installments at a defined interest rate. Operators would recover their costs from the connection subsidy (paid by 297 Inventory of Projects A APPENDIX 11601-08_AppA-rev2.qxd 5/4/09 11:36 AM Page 297 SENASA) and the connection charge and tariff (both paid by users). Each town had the right to reject the winning bid if it considered the connection fee too high. PIJC mechanism: The bidder that was both responsive to the technical requirements and offered the lowest connection fee would be declared the winner. Source: Drees, Schwartz, and Bakalian (2004). Project B: IDA Conditional Grants Based on Tracking of Heavily Indebted Poor Countries (HIPC) Contact: Danny Leipziger, vice president and head of the Poverty Reduction and Economic Management Network, World Bank Description: Sixteen public expenditure management indicators are used to evaluate progress on HIPC areas, and grants by IDA depend on such progress. PIJC mechanism: Pecuniary certification Source: International Monetary Fund and World Bank, “Update on the Assessments and Implementation of Action Plans to Strengthen Capacity of HIPCs to Track Poverty-Reducing Public Spending,” April 12, 2005 (www.imf.org/ external/np/pp/eng/2005/041205a.pdf). Project C: Olympic Games Host City Selection Contact: International Olympic Committee (IOC) Description: The candidate cities were selected after a working group of IOC administration members and external experts studied their applications. An assessment was made of each applicant city’s ability to stage high-level, international, multisport events and to organize quality Olympic Winter Games in 2010, based on eleven technical assessment criteria: government support and public opinion, general infrastructure, sports venues, Olympic village, environmental conditions and impact, accommodation, transport, security, experience from past sports events, finance, and general concept. PIJC mechanism: Cities compete for the right to host the Olympic Games. After applications are submitted, the IOC makes the decision. The cities that are nominated to the international competition to host the games also have to win the nomination of their respective National Olympic Committee (NOC). (NOCs also supervise the preliminary selection of potential bid cities. Before a candidate city can compete against those in other countries, it first must win the selection process by the NOC in its own country. The NOC can then name that city to the IOC as a candidate to host the Olympic Games.) Note: The host city for the World Cup is also chosen in a similar manner. The only difference is that the Fédération Internationale de Football Association 298 appendix a 11601-08_AppA-rev2.qxd 5/4/09 11:36 AM Page 298 (FIFA) decides (via a rotation system) which continent is going to host the World Cup, and then only countries in that region of the world can bid to host it. Source: Candidature Acceptance Working Group (2006); also available at http://multimedia.olympic.org/pdf/en_report_1073.pdf. Project D: Clean City Program (ADIPURA), Indonesia Contact: Good Governance Institute, Indonesia Description: This is a locally implemented, public disclosure program at the local government level with the aim of encouraging good governance, sustainable development institutions, and sound environmental management, as well as meeting the Millennium Development Goals. PIJC...