Global Fund’s New Funding Model Moves Forward

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At the 31st Board Meeting of the Global Fund to Fight AIDS, Tuberculosis and Malaria, the Board approved the final major decisions necessary to launch full implementation of the new funding model (NFM), effective immediately.  The Global Fund will provide a total of $16.38 billion in available funding for the fight against the three diseases in the coming allocation period, including $15.77 billion to individual country programs, $200 million to new regional initiatives and $100 million in strategic investments, such as technical assistance to develop concept notes and strengthen country data systems. The total amount includes funding raised in the recent 4th Replenishment Conference as well as unspent funds from the 3rd Replenishment. The PSD strongly supported the decisions to launch full implementation and played a key role in aligning support with other constituencies.

The Board approved the following allocations:

  • Eligible countries will be divided into four bands based on income level and disease burden. Each country will be allocated an individual indicative funding amount and each band will also be allocated a pool of incentive funding that all countries in the band can apply for in order to increase their total funding.
  • The allocations to each country band are:
    • $11.25 billion to Band 1 (lower income/higher burden)
    • $0.915 billion to Band 2 (lower income/lower burden)
    • $1.530 billion to Band 3 (higher income/higher burden)
    • $1.105 billion to Band 4 (higher income/lower burden)
  • Total country allocations comprise $14.8 billion in indicative funding and $950 million in incentive funding for Bands 1, 2 and 3. Band 4 countries are not eligible for incentive funding.
  • $100 million will be allocated to five Special Initiatives for interventions that cannot be accommodated through country bands, including:
    • $30 million for a Humanitarian Emergency Fund
    • $17 million to strengthen country data systems in high-impact countries
    • $29 million to work with partners to provide technical assistance in developing concept notes and preparing new principle recipients for grant-making
    • $15 million to provide technical assistance to support the incorporation of community-strengthening, human rights and gender provisions in country programs
    • $9 million to support monitoring of value for money and financial sustainability of Global Fund-supported programs
  • $200 million will be available for new regional programs over the 2014-2016 period. These high-impact programs will address cross-border issues such as drug-resistance and migrant populations that can’t be funded adequately through individual country programs. An additional $310 million will be disbursed through existing regional programs and disease programs that are ineligible for new funding allocations.

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hcoulsonGlobal Fund’s New Funding Model Moves Forward