World's First Development Impact Bond (DIB) in Education
Educate Girls along with UBS Optimus Foundation (UBSOF) and Children's Investment Fund Foundation (CIFF) launched the World's first Development Impact Bond (DIB) in education. This 3-year (2015-2018) project tied funds to pure outcomes and was intended to be a proof-of-concept.
In this payment-by-results model, CIFF (as an outcome payer) promises to pay back the investor, UBSOF, the original investment amount plus extra returns as long as the agreed targets are delivered by Educate Girls (the service provider). The Educate Girls' DIB targeted increased enrolment of marginalized girls and children's progress in literacy and numeracy outcomes, assessed by independent evaluator, IDinsight, over the course of the 3 years’ tenure. Results-based financing consultancy, Instiglio, designed the DIB and provides performance management support to Educate Girls.
Educate Girls’ DIB had a project budget of US$ 270,000. It reached 7,300 children, covering 166 schools across 140 villages in Bhilwara, Rajasthan and had an 80% focus on achieving learning gains and a 20% focus on achieving enrolment of girls.
The final results were announced at an event hosted by The Brookings Institution in Washington D.C. on July 13, 2018. Watch the recorded panel here.
Educate Girls' DIB surpassed both its target outcomes!
160% of the final learning target achieved
In the final year, learning levels for students in program schools grew 79% more than their peers in other schools – almost the difference of an entire additional year of instruction.
116% of the final enrolment target achieved
768 eligible out-of-school girls identified in the program area were enrolled in school (against a target of 662).