The Contractual Approach was introduced in DRC, Rwanda and Burundi respectively in 2000, 2002 and 2005 with different documents of contract-based solutions. Recently, the Central African Republic, Cameroon, Zambia and Tanzania also undertook PBF initiatives.
In international literature, a more specific form of the Contractual Approach is developed: performance purchasing, performance-based financing (PBF), Pay for Performance (P4P) or Initiative for Performance (IP).
This specific form of the Contractual Approach rather focuses on the rational aspect between the purchaser (for instance, a Purchasing Agency, a health insurance company) and a service provision institution (a health centre or public, faith-based or private hospital) - or also schools or local administrative structures).
An important characteristic of performance purchasing is the separation of regulatory functions from funds channelling.
Following positive responses to pilot experiments conducted by Cordaid in Rwanda, Burundi and DRC, this Approach tends to become widely applicable in different countries thanks to the support from governments and several development partners.
STRUCTURE The Project has two operational levels:
Country level: each partner, in their country, defined their intervention according to the current situation of their involvement and priorities in PBF.
International and regional level: network action of seven (7) countries with a Secretariat of the network managed by HDP (Rwanda) with Cordaid in charge of international coordination.
DURATION AND FINANCING
With the European Union’s financing, the Project will spread over a three-year period (2010-2012).
POINTS IN COMMON WITH OTHER PBF INITATIVES
They are the following:
. PBF advocacy;
. Establishment of communication instruments;
. Documentation of PBF experiences;
. PBF exchange network;
. Human resource capacity reinforcement in PBF;
. Updating of PBF-related best practices;
. Ensuring that the voice of the population is heard more.