Project: Improving the impacts and potential upscaling of projects under HIT RESET Caribbean
State of development: Current
Stage of development: Final negotiations
Stage notes: Scale Up
Type of instrument — Impact Bond: No; Outcomes Fund: No; Social Impact Incentives (SIINC): No; Social Impact Guarantee: No; Payment-by-results (no pre-financing): Yes; Technical Assistance and Market-building program: No; Other: 
Rationale for using outcome-based finance: "The project is innovative as it builds upon technically validated projects to create new projects where the focus is sustainability and regional replicability. This would have allowed for many technical challenges to be understood and addressed early in the life of the third-party projects to reduce the possibility of project failure. 
The Plans of Action/ and OBF proposals are designed to identify the optimum pathways of scaling (embedding in national agency workplans, commercialization etc.) and can support financial sustainability as the instruments can be targeted for national governments, regional multilateral agencies, private sector or other financing institutions. A further pathway, with the support of the Outcome Accelerator, is to identify global output investors.
As the projects will likely include the same execution actors there will be no cost attached to identifying and evaluating new proposals thus making the future upscaling more effective."
Key challenges to launch: "One key pain point is that funding for R&I projects is largely driven by externally financed grants which are not easily tracked unless intelligence gathering systems and response capacity of institutions are optimal. This can limit financing for upscaling projects. An indigenous funding system based on OBF can allow for greater preparedness through greater interaction between donor and applicant. This can be supported by Outcomes Accelerator. 
Another key pain point is that applicants must adapt themselves to donor priorities and requirements to be successfully awarded. For example, EU project often requires 15% of the funds to be raised by Beneficiaries which is challenging as in the case of a large projects like HIT RESET Caribbean. This project can be used to offset some of the co-financing burden of HIT RESET Caribbean while also allowing the new projects to be largely driven by local priorities."
Social/developmental challenge: "CARICOM (Caribbean Community) has encouraged its Member States to "promote a regional research and innovation mechanism to enhance development and competitiveness" (CARICOM 2007). Despite this, the regional/ national innovation ecosystems in the region is very immature (Meahjohn 2020; Dohnert et al. 2017), and this limits its ability to adequately address its developmental problems and generate sufficient economic opportunities to develop indigenous funding systems. 
The EU-funded, HIT RESET Caribbean project is the first regional grant programme run by UWI. Financial and possible technical support from the Outcome Accelerator will allow the creation of OBF proposals to scale up validated technologies. These instruments will allow UWI to approach regional financial institutions (e.g. Caribbean Development Bank), national governments or multilateral financial agencies to put in place a programme to finance these initiatives. The creation of this indigenous funding programme may continue into the future and become a driver of the national/regional innovation ecosystem."
Expected intervention model: "Harnessing Innovative Technologies to Support Resilient Settlements on the Coastal Zones of the Caribbean (HIT RESET Caribbean) project has awarded grants for projects to entities that support planning and management in the coastal zone through stimulation of the development of regional and national systems of innovation. Five grants have activities in Dominica, Dominican Republic, Jamaica, St. Lucia and Saint Vincent and the Grenadines. Additional there are projects in Trinidad and Barbados. 
This proposal seeks to engage a Consultancy Team to develop collaborative action plans for scaling up of the results of projects supported under HIT RESET Caribbean to ensure their sustainability beyond the life of the project and facilitate regional replication. This may include strategies for commercialization of findings, embedding in national/local government operations and the development of outcome based funding (OBF) proposals. The OBF proposals will be shared with financing entities such as the Caribbean Development Bank or other outcome-based funding entities near the end of the HIT RESET Caribbean project. The impact will be an improved innovation ecosystem which can sustain actions which build resilience in coastal communities. This will also support the development of a regional knowledge hub where knowledge/information/lessons learnt on upscaling can be communicated."
Policy sectors — Employment and private sector development: No; Education: No; Social protection: No; Criminal justice: No; Health: No; Agriculture: No; Environment and climate change: No; Water, Sanitation and Hygiene: No; Energy: No; Humanitarian: No; Early Childhood Education: No; Other: Yes
Primary SDG goal: 8,13
Country income classification of beneficiaries — Low-income: No; Lower-middle-income: No; Upper-middle-income: Yes; High-income: No
Notes: Data for this pipeline project was last updated in August 2023
Delivery location: Jamaica, Dominica, Dominican Republic, Saint Vicent and the Grenadine, Saint Lucia