Can Impact Bonds Deliver Better Results, Faster and Cheaper?

This World Bank case study investigates whether impact bonds can deliver better, faster, and cheaper results for development projects. It explores the performance-based contract model of impact bonds, where private finance covers upfront costs and is reimbursed by outcome payers upon achieving pre-specified results. The paper provides an initial framing of the challenges in pricing outcomes to balance appropriate returns with commercial viability, offering guidance for organizations engaging with these instruments.