Global Partnership on Output-Based Aid(GPOBA), in association with the Water and SanitationProgram (WSP), initiated a study to examine whether OBA hasthe potential to improve the delivery of public financing tothe sanitation sector and improve access to sustainablesanitation services. The first phase of the study consistedof reviewing experience to date with OBA for sanitation andexamining the potential for its application. Phase one ledto the publication of a GPOBA working paper. During phasetwo, concept notes are being prepared to identify how OBAapproaches could be introduced in a number of sanitationprojects or programs that are either ongoing or in theprocess of being designed. Key questions raised in the studyincluded: What explains such limited use of OBA-financingapproaches for sanitation? How can OBA subsidies bedelivered to providers of sanitation services? What othercomponents (e.g., support services to small-scaleindependent providers, micro-finance, etc.) may be requiredto improve chances of success of OBA schemes for sanitation?