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In line with worldwide trends, Payment for Environmental Services (PES) has been adopted as a strategy for environmental management in Brazil. The River Basin Clean-up Program (PRODES) launched by ANA in 2001 was the first Output-based Aid (OBA) experience implemented in Brazil for supporting new investments in wastewater treatment. It aims at environmental problems of water pollution caused by discharges of raw sewage. Rather than allocating public funding for engineering works or procurement of equipment, a new approach focuses on payment for results, i.e., attainment of efficiency goals and removal of organic loads, measured in terms of kilograms of BOD per day, and operational performance of Wastewater Treatment Plants (WTPs).

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