We are pleased to share with you the Private Sector Delegation (PSD) Newsletter – a bi-annual publication covering updates, news and information on the PSD, the Global Fund and its Board.

This edition of the PSD Newsletter contains

• Global Fund’s 10th anniversary
• News from the Global Fund’s new general manager
• Updates on the Global Fund’s transformation
• Highlights from the May 2012 Board Meeting
• Update on the Transitional Funding Mechanism
• Corporate partnership and grant recipient spotlights

---

Global Fund Marks its 10-Year Anniversary

The Global Fund celebrates its 10th anniversary this year. Over the past decade, the Global Fund has approved more than US$ 22.6 billion in grants to 150 countries. Since its 2002 inception, the Fund has helped save millions of lives around the world. By 2009, more than five million people had access to life-saving anti-retroviral treatment for HIV/AIDS, compared with next to none in 2001. An estimated 750,000 fewer children died from malaria from 2001 to 2010, 85% of these in the last five years, and TB-related deaths have fallen significantly. The progress in fighting these three diseases over the decade has been immense.

To commemorate its 10th anniversary, the Global Fund released a video at the World Economic Forum’s annual meeting in Davos. The video featured prominent supporters of the Fund, including Bill Gates, Tony Blair, Bono, Bill Clinton and Lesotho’s Health Minister, Mphu Ramatlapeng. The French newspaper, Le Monde, published a four-page supplement on the Global Fund’s progress over the last decade with reflections by Kofi Annan, former secretary-general of the United Nations; Françoise Barré-Sinoussi, Nobel Prize winning virologist; Michèle Barzach, president of Friends of the Global Fund Europe; and Michel Kazatchkine, past executive director of the Global Fund.

---

Gabriel Jaramillo: The Global Fund’s General Manager

Bringing his vast experience with the private sector to the Global Fund, new General Manager Gabriel Jaramillo has made several high-impact changes to strengthen the Fund’s grant process. As part of a larger, concerted effort to channel Global Fund grants to countries most in need of funds:

• 75% of the Secretariat now focuses on grant management.
• Three new disease-focused committees – one each for HIV/AIDS, TB and malaria – were formed to advise the Secretariat on grant flows, implementation strategies, trends, etc.
• Three of the six newly formed departments within the Grant Management Division will serve 20 of the highest disease burden countries.

These and other strategic decisions taken by Jaramillo have led to a forecast of $1.6 billion in available funds for 2012-2014.

---

Wanted: Corporate Executives to Temporarily Work with Global Fund

Gabriel Jaramillo announced a secondment program for private sector executives at the GBCHealth Annual Conference and Dinner in New York City in May. Bringing their private sector expertise to the Fund, 25 corporate representatives will be recruited to spend six months to one year at the Fund’s headquarters in Geneva or in-country. Details of the program will be released in coming months. The program fits into Jaramillo’s goal of increasing the private sector’s role with the Fund. Contact psd@gbchealth.org for more information

---

Update on The Global Fund’s Transformation

The Global Fund has implemented the following changes to strengthen the organization:

• An extensive staff reorganization took place, resulting in a 7.4% reduction in positions.
• The following positions have been created to strengthen the organization: Director of Communications (filled), Chief Risk Officer (filled) and Chief Financial Officer (TBD).
• A pre-assessment was conducted for grants scheduled for renewal in 2012 to support re-programming needs.
• An Operational Risk Committee was formed within the Secretariat to review and validate decisions for large or high-risk grants. The committee will also be responsible for referring critical risk issues to upper management and for best-practice sharing between regional teams.
• The Operational Risk Committee with the Grant Management Division helped develop a Risk-Management Framework that was rolled out in January 2012. Currently, this system is being implemented in El Salvador, Jordan, Nigeria, Pakistan and Uganda. The Secretariat plans to work closely with implementing countries to improve risk-management.

---

Global Fund May 2012 Board Meeting: Outcomes and Achievements

Private Sector Advisory Group and Constituency members participated in an all-day meeting in Geneva on May 8th to discuss the key decisions expected at the May 10-11 Global Fund Board meeting, as well as broader issues facing the organization. The meeting was followed by a PSD networking dinner.

On May 9, Advisory Group members met with Board Constituencies to review their positions and perspectives on priority Board matters. An official delegation of Advisory Group members, led by Dr. Brian Brink, the private sector Board member and chief medical officer of Anglo American plc, went on to represent the private sector at the 26th Board meeting, May 10th-11th. The following actions were taken at the meeting:

• The Board delegated Finance and Operational Performance Committee (FOPC) authority to approve operating expenses within limits of the Board-approved annual budget and to authorize adjustments to the budget.
• The Secretariat was granted authority to extend the grant-signing period by three months and was given authority over other grant management functions.
• The “55% rule” will not be implemented until further analysis is completed by the Secretariat in consultation with the Strategy, Investment and Impact Committee (SIIC). Recommendations will be made at the November 2012 Board meeting on the rule that requires that 55 percent of all funding for grant renewals go to low-income countries. Adopted last year, this rule is intended to drive resources toward places with the greatest need and least ability to address epidemics.
• The Board launched the selection process for the Fund’s new executive director and confirmed six of the nine members of the Ad-hoc Nominations Committee (AHNC). The remaining three non-constituency, independent members will be appointed by the AHNC members.

---

Update on the Transitional Funding Mechanism

As of March 31, the Secretariat had received 61 applications for funding under the Transitional Funding Mechanism (TFM). These applications amount to US$ 616 million over the two-year life of these proposals. They included:

• 26 applications for HIV/AIDS – US$ 253 million
• 21 applications for tuberculosis – US$ 130 million
• 14 applications for malaria – US$ 233 million

In light of the Global Fund’s forecasted $1.6 billion in available funds for 2012-14, there is sufficient funding for the TFM applications. Applications will be reviewed by the TRP from June 9th-23rd, with funding recommendations to follow. Part of the application review process has been changed to incorporate greater dialogue between the applicants, Technical Review Panel, the Secretariat and partners.

---

Private Sector Spotlight on the Global Fund at GBCHealth’s Conference

The Global Fund was featured at GBCHealth’s Annual Conference and Dinner in May. The session entitled, The Global Fund: What’s Ahead for the Fund and the Private Sector, highlighted the private sector’s key role in giving financial and technical assistance to the Fund. Renuka Gadde, the PSD alternate board member and vice president of Global Health at BD, gave an overview of the new general manager’s agenda. Dr. Brian Brink, the PSD Board member and chief medical officer at Anglo American, highlighted the in-kind and financial contributions the private sector has made and stressed the need for continued support. GBCHealth also convened a private meeting with Gabriel Jaramillo for PSD members and other companies interested in the Global Fund’s mission.

• 20 companies were represented from different industries, ranging from pharmaceuticals to beverage and electronics.
• Jaramillo announced a secondment program for private sector executives to the Global Fund.
• GBCHealth and the global communications firm Edelman announced a joint communication strategy for outreach to companies on the secondment program.

Jaramillo also spoke at the GBCHealth gala dinner, reiterating the need for greater private sector participation in the Global Fund.

---

PRIVATE SECTOR PARTNERSHIP SPOTLIGHT

HEINEKEN: Providing Healthcare to its Workforce

Heineken provides healthcare for its workforce in six countries in Africa. Its work in these countries has earned international recognition, resulting in two of its breweries being appointed to the Country Coordinating Mechanisms for the Global Fund. In the Democratic Republic of Congo, Heineken’s local brewery, Bralima, took unprecedented action to fight the AIDS epidemic, becoming a model for other companies operating in the region. Learn more

---

COUNTRY SPOTLIGHT

Peru: Largest Recipient of Global Fund Grants in Latin America

The largest Global Fund recipient in Latin America, Peru receives $146 million in funding. With a relatively high disease burden of HIV/AIDS and TB, Peru will experience significant disruption in funding due to the Global Fund’s new grant approval process.

GLOBAL FUND GRANTS TO PERU

Impact of Global Fund grants:

• Health Centers: Improved infrastructure and provided medical equipment to health centers in 10 prisons, including some of the most overcrowded prisons in Lurigancho and Tambopata.
• Regional Strategies: Designed regional intervention strategies based on successful Global Fund programs.
• ARV treatment: Reached 90% of people living with HIV/AIDS with ARV treatments in the Callao region of Peru, where the epidemic is a top health priority.

Learn more about the impact of Global Fund Grants in Peru

---

GBCHealth Annual Conference and Gala Dinner

May 14-15, 2012

GBCHealth’s annual conference, held in New York, featured:

• Global private, NGO and government sector leaders
• Panels topics: maternal health, social media in healthcare, CSR in health, MDG Health Alliance, eliminating malaria in Souther Africa, TB vaccines, etc.
• Prominent speakers: Dr. Dean Ornish, preventive medicine expert Deepak Chopra, Muhtar Kent, CEO, Coca-Cola Company; Richard Edelman,CEO, Edelman; Madam Bongi Ngema-Zuma, first lady of South Africa; Michel Sidibé, UNAIDS executive director; Eric Goosby, U.S. global AIDS coordinator

---

The Private Sector Delegation (PSD) is hosted by GBCHealth

GBCHealth serves as the entry-point for the Private Sector to collaborate with the Global Fund. With dozens of committed businesses, GBCHealth orchestrates The Private Sector Delegation’s role, steering Global Fund priorities and policies, while also ensuring that the Global Fund actively engages the business sector.

For more information on how your company or private sector organization can get involved, please contact PSD Focal Point, Anna Thompson-Quaye at psd@gbchealth.org. Learn more