The United States Agency for International Development (USAID) today announced the launch of 'Rajasthan Development Impact Bond', its first such impact bond globally.
Mark Green, Administrator of USAID, said the bond aims to reduce the number of mother and baby deaths by improving the quality of maternal care in Rajasthan's health infrastructure.
He was speaking at a press conference on the sidelines of the Global Entrepreneurship Summit here.
"We are launching this facility for the first time across the globe. Through this public-private partnership, private capital will front the cost to improve the quality of health services in private health facilities in Rajasthan and USAID will payback the investment only if the providers achieve certain concrete results," Green said.
This 'Utkrisht Impact Bond' -- Utkrisht is Hindi for excellent -- is the world's first health impact bond, developed by partners including USAID, Merck for Mothers, the UBS Optimus Foundation, HLFPPT and PSI, a statement on USAID website said.
Private capital from UBS Optimus Foundation will front the costs to improve the quality of health services in private health facilities in Rajasthan, and HLFPPT and PSI will use that capital to improve the quality of care in facilities and help them become accredited.
USAID and Merck for Mothers will pay back the investment only if certain targets are met, it said.
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