This report aims to assess the impacts of Performance-Based Incentives (PBIs)/ Results-Based Payments within IDB Invest’s Blended Finance portfolio, with a focus on gender-related PBIs. The report was produced by IDB Invest and Dalberg with support from We-Fi.
PBIs, such as interest rate reductions triggered upon reaching specific gender targets, can be useful instruments for MDBs and DFIs to mobilize private sector investors.
The report suggests that DFIs and MDBs can incorporate Performance-based Financial Incentives (PBIs)/ Results-Based Payments into their portfolios by following the 12 recommendations throughout the investment lifecycle. These recommendations include:
- Piloting structures that reward progress at intermediate stages.
- Considering the provision of Technical Assistance (TA) for all investees benefiting from incentives.
- Standardizing reporting processes specific to PBIs.
- Encouraging active collaborations for spillover effects.
