PHM-Exch> The Global Fund adopts new funding model

[Claudio Schuftan]

From: Reinhard Koppenleitner <RKoppenleitner at t-online.de>

Von: PlusNews [mailto:no-reply at IRINnews.org]



1 - HEALTH: The Global Fund adopts new funding model



JOHANNESBURG, 25 September, 25 (PLUSNEWS) - The Global Fund to Fight AIDS,
Tuberculosis and Malaria has released initial details on its new funding
model, which will change the way countries apply for money. But as the Fund
works to finalize the model before next year, civil society is criticizing
the process for being untransparent and rushed.



The Global Fund board adopted guiding principles of the model at a
mid-September board meeting in Geneva. Although the model's finer aspects
are still being developed, key elements include the allocation of funding
to country groupings based on disease burden and ability to pay as well as
largely foreseen changes to grant application procedures.



National strategic plans and national investment frameworks for the three
diseases that demonstrate value for money will become increasingly
important in the allocation of funds, according to the meeting's decision
points. [ http://www.theglobalfund.org/en/board/meetings/twentyseventh/ ]



The Fund's Strategy, Investment and Impact Committee (SIIC) is rushing to
hammer out the model's details and present them to the Global Fund
secretariat in a paper by 15 October. According to board members on the
SIIC, committee leadership will be engaging in multiple consultations in
person and remotely for feedback until 10 October.



The Global Fund board is expected to make a final decision on the model at
its November board meeting.



Funding allocations



The new model arises after a high-level panel reviewed the Fund's financial
controls on how grant money is spent, following allegations of fraud among
fund recipients in countries such as Mali, Mauritania and Zambia.



Among other changes, the new model will group countries by disease burden
and World Bank income level, with resulting groups known as "bands".



Although the Fund's portfolio deals with three diseases, the Fund
anticipates one set of country bands rather than a set of bands for each
disease. The number and composite of country groups has yet to be
determined.



Without a widely accepted measure of disease burden applicable across the
three diseases, the Fund has decided that it will base funding allocations
for each diseases on previously used levels for up to one year, until an
alternate method of dividing the money can be devised, said Andrew Hurst,
head of media relations for the Fund.



This has drawn protests from some groups, including those working to fight
tuberculosis (TB), a disease that has traditionally received 16 percent of
the Fund's resources; in the run-up to the Fund's September meeting,
advocates from these groups pushed hard to increase this allocation. The
StopTB Partnership, for example, argued that if disease allocations were
determined by mortality, TB programming would receive about 34 percent of
all Global Fund monies.



It has since released a statement expressing hopes that a better method
will be devised for determining funding allocations in the future.



Grant system to become more flexible



The new model also cements the Fund's move away from the 'round' system, in
which calls for grant applications were issued periodically, and towards a
more implementation-ready approach to grant provision.



Under the new grant structure, the Fund will allow countries to apply
throughout the year in line their national budgeting cycles. Concept notes
will take on increasing importance in the system, a move welcomed by many
civil society organizations such as the AIDS Rights Alliance of Southern
Africa (ARASA).


With the changing availability of Global Fund resources, the panel will
hold proposals that, while technically sound, cannot be funded at the time
they are submitted due to insufficient resources. These will be re-reviewed
when additional funding becomes available, although how these proposals
will be prioritized remains unclear.



Civil Society asks Fund to 'press the pause button'



As the Fund finalizes the model's details, many African civil society
organizations have expressed dissatisfaction with the speed and
transparency of the process.



In late August, ARASA and the South Africa-based World AIDS Campaign
launched the 'Press the Pause Button' campaign. Endorsed by almost 40
African NGOs, the campaign called for the Fund to develop a more robust and
inclusive communication and consultation process around the model's
development.



According to ARASA Advocacy Officer Lynette Mabote, the bulk of African
civil society remains largely clueless about the model's selection and what
it will mean for them as implementers.



The World AIDS Campaign and ARASA conducted a rapid consultation with
almost 60 NGOs in Africa and found that, in the absence of communication
from the Fund, the knowledge about the new model is almost non-existent.


This report on line: http://www.plusnews.org/report.aspx?ReportID=96385
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