External Relations and Partnerships

Harmonization and CoordinationExperiences of the Global Fund

Overview

I. Introduction: GF Guiding PrinciplesII. Aid Effectiveness and the Paris principlesIII. Actions going forwardIV. Ressource needs

THE FRAMEWORK DOCUMENT OF THE GLOBAL FUND TO FIGHT AIDS, TUBERCULOSIS AND MALARIA

“The purpose of the Fund is to attract, manage and disburse additional resources through a new public-private partnership that will make a sustainable and significant contribution to the reduction of infections, illness and death, thereby mitigating the impact caused by HIV/AIDS, tuberculosis and malaria in countries in need, and contributing to poverty reduction as part of the Millennium Development Goals.”

Guiding Principles

1. Operate as a financial instrument, not an implementing entity

2. Make available and leverage additional financial resources

3. Support programs that reflect national ownership

4. Operate in a balanced manner in terms of different regions, diseases and interventions

5. Pursue an integrated and balanced approach to prevention and treatment

6. Evaluate proposals through independent review processes

7. Establish a simplified, rapid and innovative grant-making process and operate transparently, with accountability

BG/290607/2

Global Fund Proposals Process

The BoardIssues call for proposals policy and governance

Country Coordinating MechanismsDevises national strategy submits proposals

CCM Includes GOVERNMENT

MULTI-AND BILATERAL DEVELOPMENT PARTNERS NGO

AFFECTED COMMUNITIES FAITH-BASED ORGANISATIONS

PRIVATE SECTOR

SecretariatScreens for Eligibility

The Board Approves funding for first two years

Country Coordinating Mechanisms

Principal Recipient

Technical Review Panel Reviews and recommends for funding

The Paris DeclarationThe Paris Declaration

The Paris Declaration is a global agreement signed by the Global Fund and over 100 countries and donors.

Global Fund actions to improve aid effectiveness include:

• National Strategy Applications to simplify application and reporting procedures

• Direct civil society financing track to maximize channels for delivery

• Salary support policy for programs to improve consistency, harmonisation and alignment

• Country communication strategyto encourage collaboration and coordination

54 countries participated in 2008 monitoring round; 2006 monitoring took place in 32 countries. Many newcomers in Eastern Europe and West Africa.

2008 survey covered 59% of total disbursements in 2007, and USD 3,4 billion of commitments.

Monitoring process was country-led. LFAs were contracted to carry out data collection to keep country burden at a minimum

II Global Fund measured progress against the Paris principles

in 2006 and 2008 and next in 2010

+ Strengths

• Strong managing for results and accountability• Untied and largely predictable financing to recipients• Financing supports a program approach with fewer parallel structures• Building monitoring, evaluation and performance systems

- Weaknesses

•While overall numbers are low, missions and analytic works can be better coordinated•National auditing procedures•Relationships between sector and finance ministries•Lack of consistent approach to salaries

The Global Fund’s Strengths and areas for Improvement

GF contribution to IHP+

• A signatory to the global IHP compact • A member of the oversight committee of the IHP+ (Scaling Up

Reference Group) • An active member of IHP+ working groups 1) Validation of national

strategies and 2) harmonization of monitoring & evaluation. • Working to closely align the development of national strategy

applications for Global Fund financing with IHP processes, including piloting the NSA approach in a select number of both IHP and non-IHP countries

As convener of the Learning group of Global Programmes– Members from education, environment, agriculture, health and

urban affairs– Meetings regularly to share best practices through culture of

learning– Continued engagement with OECD Development Assistance

Committee and working parties Through actionable recommendations presented to management

and Board– Key Performance Indicators to institutionalize monitoring– GF financing included in national budgets to strengthen national

planning– Alignment to country fiscal and reporting cycles – Coordination of support to program salaries

Actions going forward

Total pledges available through 2010 = US$ 19.2 billionApproximately US$ 11.8 billion has been paid inG8 committed 72% of the resources to date

Funding to the Global Fund

Cumulative Contributions and pledges to the Global Fund

(2001-2010 and beyond)5%

23%

72%

G8

Other Public Sector Donors

Private Sector and InnovativeFinancing

• Debt2HealthFramework Agreement with Germany for €200 million (years 2007-10)First Debt2Health Agreement with Indonesia for €50 million Discussions with Other Creditors on-going

• UNITAID Direct contribution to Round 6 (US$ 52.5 m) Indirect contribution for scale-up of ACTs (US$ 79 m) Indirect contribution for scale-up of MDR-TB (US$ 13 m)

Increasing investment through Innovative Financing

What Results have been Achieved?1 December 2008

52%

39%

43%

0% 50% 100%

MALARIA: ITNs

TB: DOTSTreatment

HIV: People onARVs

% increase from End 2007

2,000,000

4,600,000

70,000,000

People Reached

GP/110608/8

High quality demand is growing

0

500

1000

1500

2000

2500

3000

R1 R2 R3 R4 R5 R6 R7 R8

Rounds

UIS

$ m

illi

on

April 07: the financial growth of the Global Fund should be based on country demand November 07: high quality proposals worth US$ 2.75 billion approved for funding Largest funding Round ever Acceptance rate increased from 31% in Round 7 to 54 %

GF Resource Needs for 2009-2010

Needed/Estimated Already Covered

Round 8 $2.75 billion $2.0 billion

Renewals of ExistingGrants

$4.0 billion $4.0 billion

Round 9 $2.5 billion $0.9 billion

Round 10/National Strategies

?

TOTAL $ 9.25 billion $6.9 billion

“GAP” of 2.35 bio for 2009-2010 period

Thank you!