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Given the broad array of issues and
the complexity faced by the water sector as a whole (from
irrigation to flood protection, to water conservation and
hydropower), there is great demand for future exploring the
potential of RBF and tackling the questions still unanswered
about many of its operational dimensions. This document
takes a closer look at some of the practical aspects of
implementing various RBF water schemes. Chapter 2 provides
an analytical framework to explore if and when RBF can be a
viable option, shedding light on some key factors and
preconditions that are necessary for RBF to work--with the
understanding that it can be used either as an alternative
or a complement to a more traditional input-based funding
scheme. Chapter 3 then revisits the concepts discussed in
the analytical framework through the analysis of various
case studies of RBF approaches in different water-related
areas. Some of the case studies are based on actual projects
already implemented or ongoing, while others are an
illustrative elaboration, given the lack of practical cases
to use as sources. Chapter 4 presents some conclusions and
lessons learned. The key challenges that are likely to be
encountered in designing an RBF scheme deal with: the
clarity and level of certainty of the relationships from
input to output to outcomes (causal links); the ease and
availability of measurable indicators; and, consequently,
the optimal determination of the necessary incentive(s) to
align the goals of the principal with the agents'
deliverables. Appendix A presents a glossary of RBF concepts
and acronyms. Appendix B presents specific results and
indicators which may be relevant for different sectors.
