ODI's Water Policy Programme will provide an informed scoping study to assess theoretical feasibility of the progress-linked finance (PLF) model and uptake by development actors, developing a number of options for how PLF might work in different contexts.
The key components of the study are:
- Desk study to understand PLF's place within the evolving urban infrastructure financing environment
- Key informant interviews with urban programme managers and financing specialists to identify strengths, weaknesses, opportunities and threats for PLF as a financing modality.
- What are the transferable lessons from other modalities and sectors?
- What are the opportunities and threats in relation to broader political economy considerations, including: legal status of informal settlements and small service providers; financial autonomy of utilities and sub-national government; dynamics of participation and accountability within and between communities and government?
- What is the structure and format of PLF pre-agreeements likely to look like?
- What are the likely support mechanisms and transaction costs for assisting actors to reach "readiness"?
- What is the nature of PLF conditions/criteria?
- What are the responsibilities and processes for verification of readiness?