Global Fund Launches New Funding Model

28 February 2013

Up to $1.9 billion Available in 2013 and 2014

GENEVA - The Global Fund to Fight AIDS, Tuberculosis and Malaria today launched a new funding model that allows it to invest more strategically, achieve greater impact, and engage implementers and partners more effectively.

The new funding model provides countries that implement grants with more flexibility around when they apply for funds, as well as more predictability on the level of funding available, while still encouraging countries to clearly express how much funding they need to effectively treat and prevent HIV and AIDS, TB and Malaria.

Up to $1.9 billion may be available for the new funding model's transition period, in 2013 and 2014. Full implementation of the new funding model will begin in early 2014 and will grant money in the 2014-2016 period.

"Our new funding model means more effective investments, with greater impact," said Mark Dybul, Executive Director of the Global Fund. "It will definitely help us leverage investment in a way that allows our partners to reach more people facing these diseases."

Dr. Dybul added: "Our gains will be lost if we do not move forward to defeat these diseases. We can't stop now."

Based on the available funding, 47 countries may receive up to US$1.5 billion through renewals, grant extensions and redesigned programs that can rapidly make use of funds in 2013. As "interim applicants," these countries can immediately accelerate current programs that are highly effective.

Six countries and three regional programs are being invited as "early applicants" to participate in the full process of the new funding model, from submitting a concept note to creating a new grant. The countries - Zimbabwe, El Salvador, Myanmar, the Democratic Republic of the Congo, Kazakhstan and the Philippines - will be able to access a total of US$364 million in new funding, and can also apply for additional funds that incentivize ambitious and high impact investments and co-financing.

For all other countries, "standard applicants," the new funding model's flexible timeline means that efforts to conduct country dialogue and strengthen national strategies can proceed in a constructive way consistent with national planning cycles to prepare for funding in the 2014-2016 period.

The new funding model replaces the former "rounds" system of funding, which had one timing window for funding applications.

This year, the Global Fund invited country disease programs for funding based on criteria including: 1) being positioned to achieve rapid impact; 2) facing service interruptions or 3) currently receiving less than they would under the new funding model's allocation principles.

The new funding model is aligned with the Global Fund's existing practice of encouraging each recipient country to engage a diversity of partners, including civil society, to use the best epidemiology and scientific data possible to achieve maximum impact.

The new funding model also encourages countries to strengthen national strategies by incorporating HIV and AIDS, tuberculosis and malaria treatment and prevention in a holistic, programmatic approach. Further, it supports countries in consolidating existing funding streams and redesigning grants as needed around coherent, strategic and high impact investments that are aligned with domestic and other external funding sources.

"The new funding model gives us a special chance to learn and adapt," said Dr. Dybul. "During this year, we will monitor various aspects of the new funding model process so that we can adapt in real time. We are a learning institution and we will gain insight and knowledge as we work together."

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