Tineo, LuisEllis, PeterMandri-Perrott, Cledan2012-08-132012-08-132011-01https://hdl.handle.net/10986/10905In 2010 the World Bank approved a US$220 million loan for a Local Government and Decentralization project in Indonesia. The project aims to improve the accountability and reporting of the central government's Specific Purpose Grants (DAK). Piloted in four infrastructure sub-sectors-irrigation, roads, sanitation, and water the project is the World Bank's first to apply innovative Output-Based Aid (OBA) design principles on a large scale to target improvements in inter-governmental fiscal transfers. Under the project, the DAK grants will work in a similar way to OBA subsidies, which reimburse service providers for independently verified, pre-agreed physical outputs. Up to 81 local governments in five provinces are eligible to take part in this project. This note presents an overview of the project objectives and design.CC BY 3.0 IGOACCOUNTABILITYBASIC SERVICESBUDGETINGCOMMUNITIESDECENTRALIZATIONDEVELOPING COUNTRIESDISBURSEMENTDISBURSEMENTSEXPENDITUREEXPENDITURESFINANCIAL INCENTIVESFINANCIAL MANAGEMENTFISCAL DECENTRALIZATIONGOVERNMENT EXPENDITURESINFRASTRUCTURE SERVICESINTERGOVERNMENTAL TRANSFERSINVESTMENT LOANINVESTMENT RISKINVESTMENT RISKSLAWSLOANLOAN PROCEEDSLOCAL GOVERNMENTLOCAL GOVERNMENTSPERFORMANCE RISKPERFORMANCE RISKSPROCUREMENTPROCUREMENT LAWPUBLIC EXPENDITUREPUBLIC INVESTMENTROADSSANITATIONSUPERVISORY BOARDTELECOMMUNICATIONSTRANSPARENCYURBAN DEVELOPMENTWASTEWATER SUPPLYWorld Bank10.1596/10905