Pipeline
| ID | INDIGO-PL-0131 |
|---|---|
| Project Name - (Value) | Social Impact Guarantee to Incentive Innovations in Rural Connectivity in Uganda |
| Contact - Name - (Value) | Alissa Davis |
| Contact - Email - (Value) | alissa@bridgestoprosperity.org |
| State of Development - (Value) | Current |
| State of Development - (Source ID's) | source1 |
| Stage of Development - (Value) | Early stage |
| Stage of Development - (Source ID's) | source1 |
| Stage of Development - (Notes) | Early-Stage Design |
| Type of instrument and project - Impact Bond - (Value) | No |
| Type of instrument and project - Outcomes Fund - (Value) | No |
| Type of instrument and project - Social Impact Incentives (SIINC) - (Value) | Yes |
| Type of instrument and project - Social Impact Guarantee - (Value) | Yes |
| Type of instrument and project - Payment-by-results (no pre-financing) - (Value) | No |
| Type of instrument and project - Technical Assistance and Market-building program (Must involve dedicated grant resources) - (Value) | No |
| (Source ID's) | source1 |
| Rationale for using outcome based finance - (Value) | Ultimately, we believe the SIG-powered TRRC program will connect millions of rural residents and transform the way that development outcomes are achieved in Uganda. By utilizing an outcomes-based financing framework to incentive the right partners in the right ways, we ensure long-term sustainability focused on efficiency and efficacy, rather than bureaucracy and disparate, disorganized systems. The three-year pilot is focused on strategy development, stakeholder engagement and capacity building, and innovating new solutions to address long-standing issues (digital asset management systems, climate-resilient engineering for longer asset lifespans, etc.). In this way, the pilot will do the work to ensure that the longer-term scaled national plan is cost-effective, productive, and serving those most in need. Similarly, it will serve as a case study for how outcomes-based funding can drive partnership and leverage investment to achieve national goals and the broader global development agenda. |
| (Source ID's) | source1 |
| Key challenges to launch - (Value) | While Coalition anchor membership are familiar with traditional pay-for-performance finance mechanisms, outcomes-based funding is a much newer concept, and the facility will need to be well-designed to incentivize the GoU to explore new solutions to address a well-entrenched, if failing, system. A SIG de-risks this exploration, positioning the government as a viable outcome funder while expanding the space for implementing partners to trial, iterate, and improve service delivery. Accelerator funding and advisement will support the critical early design phase of the financing structure for the programâs $10 million pilot. A particular guarantor has not yet been identified and the Acceleratorâs match-making services would be especially beneficial on this point. More broadly, Coalition membership does not have significant OBF contracting expertise, and would draw on the Accelerator networkâs learnings and expertise in this area to ensure that all parties are attended in the deal and that legal boxes are checked. |
| (Source ID's) | source1 |
| Purpose and classifications - Social/Developmental challenge - (Value) | In Uganda'srural farmlands, millions of people live more than 2 kilometers from an all-weather road, or are cut off from services like markets, jobs, health clinics, and schools when decrepit or non-existent infrastructure fails to provide access during periods of extreme weather. While the Ugandan government has made significant headway in addressing the rural transport network, more than 90% of all roads remain unpaved, and 66% of the tertiary road network is in poor condition. If the rural road network is not routinely and periodically maintained, roads, trails, and bridges prematurely require full rehabilitation; which increases the lifecycle cost and creates logistical hurdles. The Coalition was designed to develop strategies that address the existing root challenges and use them to address bottlenecks in the road network, so that the Government has a clean slate and the appropriate systems to effectively maintain the network going forward. |
| Purpose and classifications - Expected intervention model - (Value) | Approximately 10 million rural Ugandans are isolated. This means these communities lack access to critical services, and are at risk of chronic poverty. Ensuring safe, reliable year-round access for these vulnerable rural residents is key to achieving any number of development agendas, including the Sustainable Development Goals, Uganda's National Development Plan III, and Vision 2040. The Government of Uganda has made headway in connecting rural communities, in particular through its District, Urban, and Community Access Roads (DUCAR) Network, but inadequate funding and a lack of strategic, coordinated systems limit progress. The Transformative Rural Roads Coalition (TRRC) was formed with a vision for a connected Uganda where all communities are prosperous and resilient. The Coalition will collaborate to unlock a future where government has the strategies, systems, and support to overcome complex and interdisciplinary roadblocks and successfully build and maintain a sustainable DUCAR network. An opportunity exists to utilize an outcomes-based funding mechanism to catalyze investment into an innovative, multi-sector effort and ensure that that investment is powering the most productive, creative solutions. |
| Purpose and classifications - Policy sector - Employment and private sector development - (Value) | No |
| Purpose and classifications - Policy sector - Education - (Value) | No |
| Purpose and classifications - Policy sector - Social protection - (Value) | No |
| Purpose and classifications - Policy sector - Criminal justice - (Value) | No |
| Purpose and classifications - Policy sector - Health - (Value) | No |
| Purpose and classifications - Policy sector - Agriculture - (Value) | No |
| Purpose and classifications - Policy sector - Environment and climate change - (Value) | Yes |
| Purpose and classifications - Policy sector - Water, Sanitation and Hygiene - (Value) | No |
| Purpose and classifications - Policy sector - Energy - (Value) | No |
| Purpose and classifications - Policy sector - Humanitarian - (Value) | No |
| Purpose and classifications - Policy sector - Early Childhood Education - (Value) | No |
| Purpose and classifications - Primary SDG goal - (Value) | 1,8,13 |
| Purpose and classifications - (Source ID's) | source1 |
| Service users and beneficiaries - Country Classification of Service and beneficiaries - Low-income - (Value) | Yes |
| Service users and beneficiaries - Country Classification of Service and beneficiaries - Lower-middle-income - (Value) | No |
| Service users and beneficiaries - Country Classification of Service and beneficiaries - Upper-middle-income - (Value) | No |
| Service users and beneficiaries - Country Classification of Service and beneficiaries - High-income - (Value) | No |
| Service users and beneficiaries - (Source ID's) | source1 |
| Notes - (Value) | Data for this pipeline project was last updated in August 2023 |
| Delivery Locations 1: Location - Name - (Value) | Uganda |
| Delivery Locations 1: Location - Country - (Value) | UG |
| Sources 1: Id | source1 |
| Sources 1: Name - (Value) | Data shared by key stakeholders of the project through March 2024 Levoca questionnaire |