The Global Fund- structure, function and evolution

February 18, 2008

Simplifying the Global Fund

BG/290607/4

• What is the Global Fund

• What has it achieved together with countries

• Architecture - How does it work

• The Global Fund process from proposal development to implementation

The Global Fund is an independent public-private partnership mandated:

- To raise and to disburse substantial new resources - To operate transparently and accountably

- To achieve sustained impact on HIV/AIDS, TB, and malaria

What is the Global Fund?

BG/111006/1

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

A new way of doing business

• Supports programs that evolve from national plans to fill critical gaps at country level

• Recognizes only a country driven, coordinated approach for proposal development and implementation

• Its core function remains that of financing, disbursing and managing new funds

• Relies on its partnerships with other development and technical partners, civil society and the private sector to support countries in delivering effective programs and services to communities in need

Countries with Global Fund Grants

BG/261107/6

1

2 (new)

3 (new)

4 (new)

5 (new)

6 (new)

7 (new)

0 5,0002,500

Kilometers ´

Global Fund Achievements

• $8.1 billion committed to the fight against AIDS, TB and malaria

• $5.1 billion disbursed to date

• 60% of these funds are channeled to low-income countries and committed to Africa

• The Global Fund has approx 300 staff and is supporting more than 500 programs in approx 133 countries

Malaria25%

HSS<0.5%

HIV/AIDS61%TB

14%

Disease Components DistributionRounds 1-7, (December 2007)

Global Fund Resources by Disease Component

100% = $9.98 billion USDPercentages of total funds approved by the Board, including Phase 2 OP/071207/3

Results in 2007 – rapid stage of scale up

InterventionResults

2007% increase over year

HIV: People on ARV treatment 1,400,000 88%

TB: People treated under DOTS 3,300,000 65%

Malaria: Insecticide-treated nets distributed 46,000,000 155%

Exceptional challenges: 20-40% of international targets

Key Structures of the Global Fund

• The Board

• Country Coordinating Mechanisms (CCMs)

• Technical Review Panel

• Secretariat of the Global Fund

Partnership - The Board

• Donors (7)• Recipients (7)

• Private sector• Foundations

• NGOs North• NGOs South• Communities living with the diseases

• WHO• UNAIDS• World Bank

CivilSociety

TechnicalPartners

PrivateSector

PublicGovernments

CCM

Academic

Faith-based

NGOs/CBOs

Government

Media

Multi/bilateral partners

Affected communities

Global Fund Country Governance(Country Coordinating Mechanisms)

Private Sector

Role of the CCM

• Coordinate national proposal submission for grant funding

• Ensure linkages of Global Fund assistance with development partners and initiatives

• Ensure clear strategies that meet the needs of most affected & marginalised people.

• Consultation with constituents while providing transparency to the general public

The Process Used by the Global Fund

• Global Fund calls for proposals (March 1st)

• CCM collaborates to prepare proposals

• CCM submits proposals to the Global Fund and recommends principal recipients

• Secretariat screens the proposals for elegibility

• Technical review panel reviews proposals and submits to the Global Fund Board for approval

The Process Used by the Global Fund

• Global Fund appoints a Local Fund Agent (LFA)

• LFA assesses capacity of principal recipients (PR)

• Secretariat negotiates a grant agreement with PR

• Global Fund signs a two-year grant agreement

• Disbursements are made to PR on the basis of performance in a form of progress updates

• PR may disburse to sub-recipients as implementers

Government50%

NGOs and CBOs25%

Academic5%

Private Sector6%

FBOs5%

Other5%

Communities4%

Who Implements Global Fund Grants?

OP/290607/5

Estimates from Rounds 2-6 proposals100% = $4,1 billion USD

The Global Fund’s model for grant accountability

Sustainability/

Ownership

AccountabilitySpeed

• Rely on local stakeholders at the country level to implement programs and manage grant proceeds

• As far as possible encourage the use of existing standards and processes

• Monitor and evaluate programs and make decisions on future funding based on performance and accountability

• Promote rapid release of funds to assist target populations

Thank you!