Abuja, October 30, 2008–The World
Bank, acting as administrator for the Global Partnership on Output-Based
Aid (GPOBA), today signed a grant agreement for US$6.02 million with the
Health Insurance Fund (HIF), a non-profit organization based in the Netherlands,
to establish a community health scheme for low-income families in Lagos,
The scheme will provide affordable pre-paid health insurance plans for
up to 22,500 beneficiaries (employees and their families) who belong to
the Computer and Allied Products Association (“CAPDAN”) at the Ikeja
IT village in Lagos. The services will be provided through a network
of service providers managed by Hygeia Nigeria Limited, a local private
sector health insurance entity.
“The GPOBA project will provide low-income Nigerian families with access
to affordable primary and maternal health care, as well as screening and
treatment for HIV/AIDS, malaria, and tuberculosis,” said Carmen
Nonay, Senior Infrastructure Specialist and task manager for the project
for the World Bank and GPOBA.
Currently, only 1 million people in Nigeria, or 0.8 percent of the population,
are covered by health insurance schemes. Many poor people have to
pay out-of-pocket for medical care or do without. The National Health
Insurance Scheme, introduced in 2004, is ultimately intended to cover all
Nigerians, but many low-income populations are not expected to benefit
for at least another 10 years.
Under the GPOBA project, CAPDAN employees and their families will be able
to access private health insurance at a subsidized rate. For example,
in the first year, the premium for the insurance package will be US$57
per person with a user contribution of only US$10. In line with the
output-based approach, GPOBA will pay the subsidy only after independent
verification that the pre-agreed “outputs” or services have been delivered,
thus ensuring efficiency and accountability of the service provider.
The GPOBA project is drawing on funds from IFC, a member of the World Bank
Group. IFC is providing grant financing under its Performance-Based Grants
Initiative for increased access by the poor to high-quality health care
by private sector providers in Nigeria. By expanding the role of private
firms in delivering essential public services and fostering innovation
in public-private partnerships, this initiative seeks to enhance IFC’s
development impact beyond what is possible with traditional IFC instruments
“We expect this pre-paid health insurance scheme to have strong development
and demonstration impacts by expanding access to health care for low-income
communities and encouraging other health maintenance organizations to offer
similar programs,” said Guy Ellena, IFC Director for Health and
Education. “It will also provide practical lessons to public health
authorities to promote fresh approaches in contracting with the private
sector for delivery of services. In addition, it will build on our existing
partnership with Hygeia Nigeria, an IFC portfolio client,” he added.
The Global Partnership on Output-Based Aid (GPOBA) is a global partnership
administered by the World Bank. GPOBA was established in 2003, initially
as a multi-donor trust fund, to develop output-based aid (OBA) approaches
across a variety of sectors including infrastructure, health, and education.
OBA subsidies are designed to create incentives for efficiency and
the long-term success of development projects.
GPOBA’s current donors are the UK’s Department for International Development
(DFID), the International Finance Corporation (IFC), which is a member
of the World Bank Group, the Directorate-General for International Cooperation
of the Dutch Ministry of Foreign Affairs (DGIS), the Australian Agency
for International Development (AusAID), and the Swedish International Development
Cooperation Agency (Sida). For more information, visit www.gpoba.org.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled US$16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.