Overview of the Global Fund & its Financing Activities

1. NY-070626.001/020419VtsimSL001 Overview of the Global Fund & its Financing Activities

2. NY-070626.001/020419VtsimSL001 What is the Global Fund? • A financial instrument, not an implementing agency, aiming to dramatically increase resources available to fight HIV/AIDS, TB and malaria in countries in need and contribute to poverty reduction • The largest global fund of its kind, with US$ 5.4 billion currently pledged through 2008 by donor countries, foundations and the private sector • A public-private partnership based in Geneva to serve as a partner to governments, NGOs and international agencies in the coordinated fight against the world’s deadliest diseases

3. NY-070626.001/020419VtsimSL001 The Global Fund was created in January 2002 to fill a substantial global resource shortfall to fight AIDS, TB and malaria • Required AIDS, TB and malaria investment in 20071 • US$ billion • US$ 5.4 billion in additional resources has been committed to the Global Fund to date • HIV/AIDS • Malaria • TB • "Other support“2 • Total • Domestic financing3 • Donor resource requirements 1 Limited to 85 countries with GDP per capita lower than US$ 1,200 per year 2 Includes strengthening of management systems, absorptive capacity, quality of national health care systems 3 CMH Assumption: countries can spend on average 0.65% more of their GNI on the three diseases by 2007 Source: Commission on Macroeconomics and Health, December 2001

4. 2000 July G8 endorse new AIDS, TB and malaria targets in Okinawa 2001 April African leaders commit to greater response in Abuja June Endorsement of the need for a global fund at UNGASS July Over US$ 1.5 billion in pledges made by G8 in Genoa October Transitional Working Group established in Brussels 2002 2003 2004 January April January Second round of proposals approved at fourth Board meeting Global Fund created at first Board meeting Invitation for fourth round proposals closes on 5 April 2004 April First round of proposals approved at second Board meeting July Executive Director assumes role October November June Initial disbursements of grants commence Additional funding pledges made by G8 in Evian Third round of proposals approved at sixth Board meeting NY-070626.001/020419VtsimSL001 Recognizing the urgent need for an expanded response to the three epidemics, the global community demanded the creation of a global fund Total funding available through 2008: US$ 5.4 billion. Total grants approved: US$ 2.1 billion

5. NY-070626.001/020419VtsimSL001 The mandate of the Global Fund is to raise and disburse large amounts of additional resources to achieve impact against the three diseases • Raise it • Spend it • Prove it

6. NY-070626.001/020419VtsimSL001 The Global Fund adds value to existing international efforts by providing additional resources to effective country-driven programs through public-private partnerships • Broadened public / private partnerships • At the country level, public sector, NGOs, development partners and private sector participate in a country-led coordination mechanism for proposal design and implementation • The Global Fund itself is governed by a Board with representation from donor and recipient governments, NGOs, communities, foundations and private sector • Additional resources for the three diseases • US$ 5.4 billion has been pledged to the Global Fund to date • Non-traditional ODA sources include private foundations and corporations – resource mobilization efforts on-going • Performance-based funding aligned with harmonization efforts • The Global Fund encourages grant recipients to focus on results rather than on inputs • Use of grant recipients existing systems are encouraged as well as common/harmonized donor arrangements

7. NY-070626.001/020419VtsimSL001 HIV/AIDS coverage after three rounds of proposals Armenia Belarus Jordan Kazakhstan Kyrgyzstan Moldova Russian Federation Tajikistan Ukraine Uzbekistan Yemen • Afghanistan • Bangladesh • Cambodia • China • India • Indonesia • Laos • Mongolia • Myanmar • Nepal • Pakistan • Philippines • Thailand • Vietnam • Western Pacific Islands** • Bulgaria • Croatia • Estonia • Georgia • Macedonia • Romania • Serbia • Algeria • Burkina Faso • Cameroon • Côte d’Ivoire • Gabon • Gambia • Guinea • Liberia • Morocco • Niger • Rwanda • Senegal • Togo • Argentina • Belize • Bolivia • Chile • Colombia • Costa Rica • Cuba • Dominican Republic • Ecuador • El Salvador • Guatemala • Guyana • Haiti • Honduras • Jamaica • Nicaragua • Peru • Suriname • Multi-country Americas* • Burundi • Chad • Comoros • Eritrea • Ethiopia • Iran • Kenya • Lesotho • Madagascar • Malawi • Mozambique • Sudan • Swaziland • Tanzania • Uganda • Zimbabwe • Benin • Botswana • Central African Republic • Congo (Dem Rep) • Ghana • Namibia • Nigeria • South Africa • Zambia * Anguilla (territory), Antigua & Barbuda, Bahamas, Barbados, Belize, British Virgin Islands (territory), Dominica, Dominican Republic,Grenada, Guyana,Haiti,Jamaica,Montserrat (territory), St. Lucia, St. Kitts & Nevis, St. Vincent & the Grenadines, Suriname,Trinidad & Tobago. ** Cook Islands, Federated States of Micronesia, Fiji, Kirbati, Niue, Palau, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu

8. NY-070626.001/020419VtsimSL001 Malaria coverage after three rounds of proposals • Afghanistan • Georgia • Pakistan • Somalia • Sudan • Yemen • Angola • Benin • Burkina Faso • Burundi • Cameroon • Chad • Comoros • Congo (Dem Rep) • Eritrea • Ethiopia • Gambia • Ghana • Guinea • Kenya • Liberia • Madagascar • Malawi • Mali • Mauritania • Mozambique • Namibia • Niger • Nigeria • Rwanda • Senegal • Swaziland • Tanzania • Togo • Uganda • Zambia • Zimbabwe • Cambodia • China • East Timor • Indonesia • Korea DPR • Laos • Myanmar • Nepal • Papua New Guinea • Philippines • Sri Lanka • Thailand • Vietnam • Western Pacific Islands** • Bolivia • Guyana • Haïti • Honduras • Multi-country • Americas (Andean)* * Andean Region: Columbia, Ecuador, Peru, Venezuela ** Cook Islands, Federated States of Micronesia, Fiji, Kirbati, Niue, Palau, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu

9. NY-070626.001/020419VtsimSL001 Tuberculosis coverage after three rounds of proposals • Afghanistan (integrated) • Kyrgyzstan • Moldova (HIV/TB) • Romania • Russian Federation • Serbia • Tajikistan • Bangladesh • East Timor • India • Indonesia • Korea, DPR • Laos • Mongolia • Myanmar • Philippines • Sri Lanka • Thailand • Vietnam • Benin • Cameroon • Chad • Congo (Dem Rep) • Côte d’Ivoire • Ethiopia • Ghana • Guinea-Bissau • Kenya • Lesotho • Liberia • Mauritania • Mozambique • Namibia • Rwanda (HIV/TB) • Sierre Leone • Somalia • South Africa (HIV/TB) • Sudan • Swaziland • Tanzania • Togo • Uganda • Zambia • Bolivia • Dominican Republic • El Salvador • Haïti • Honduras • Nicaragua • Panama • Paraguay • Peru ** Cook Islands, Federated States of Micronesia, Fiji, Kirbati, Niue, Palau, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu

10. NY-070626.001/020419VtsimSL001 Almost half of approved grants are for Africa with substantial funding also for other affected regions • Eastern Europe & • Central Asia (8%) • Latin America (12%) • East Asia, South East Asia, Oceania (14%) • Sub-Saharan • Africa (59%) • South Asia, Middle East & • North Africa (6%) • *Percentages may not add up to 100 due to rounding

11. NY-070626.001/020419VtsimSL001 60% of Global Fund grants are for HIV/AIDS with substantial funding for the other two diseases • Tuberculosis (16%) • HIV/AIDS (60%) • Malaria (24%)

12. NY-070626.001/020419VtsimSL001 Expected outcomes for grants approved in Rounds 1, 2 and 3 include significant progress in the fight against the three diseases HIV/AIDS: • More than 700,000 people will receive antiretroviral treatment, tripling current coverage in developing countries (11-fold increase in Sub-Saharan Africa) • 12-fold increase in current voluntary counseling and testing coverage (40 million clients) Tuberculosis: • 3 million additional tuberculosis cases will be detected and an equal number successfully treated with DOTS (the internationally approved treatment strategy for TB) • 13 million new treatments for multi-drug resistant tuberculosis will be provided Malaria: • 22 million combination drug treatments for resistant malaria will be delivered • 64 million bed nets will be financed to protect from transmission of malaria (16-fold increase from current coverage)

13. NY-070626.001/020419VtsimSL001 Half of grant proceeds will go to the public sector and half will go to non-public sector entities* • People living with • HIV/TB/malaria (3%) • Academic & • educational organizations (3%) • Faith-based organizations (4%) • Private sector (5%) • Government • (50%) • Other (6%) • NGOs (29%) • * Rounds 2 and 3 only. Information not available for Round 1

14. NY-070626.001/020419VtsimSL001 Almost half of the grants will finance drug and commodities purchases. Major investments will be made in strengtheningcapacity. • Other (5%) • Administration (4%) • Monitoring & Evaluation (5%) • Physical Infrastructure (15%) • Drugs & Commodities (46%) • Human Resources & Training (25%)

15. Sustainability/ • Ownership • Accountability • Speed NY-070626.001/020419VtsimSL001 The Global Fund’s model for grant accountability aims to find the right balance between key priorities • Rely on local stakeholders at the country level to implement programs and manage grant proceeds • Encourage the use of existing standards and processes • Promote rapid release of funds to assist target populations • Monitor and evaluate programs and make decisions on future funding based on performance and accountability

16. National AIDS Strategies MAP Bilateral programs Foundations UN funded programs • NAC National TB Strategies National Malaria Strategies NY-070626.001/020419VtsimSL001 At the country level, linkages have to be ensured with national strategies and broader development frameworks MDGs UNGASS • Academic/ • Educational Sector PRSP Mainstream development frameworks • Government • NGOs/CBOs National Health Strategies SWAps • CCM • PLW Diseases • Private sector • Religious/ • Faith-Based Organizations • Multi-/Bilateral • Development Partners

17. Prepares and submits proposals • Assessment • Local Fund • Agent • Technical review • Selects Principal Recipient(s) • Advice • Reports • Principal Recipient(s) • Screening • Proposal • Funds • Instruction to disburse • Reports • Funds • Sub- recipients • Trustee (World Bank) NY-070626.001/020419VtsimSL001 There are multiple partners to the Global Fund’s grant program arrangements • Country Coordination Mechanism • Academic/ • Educational Sector • Global Fund • Board • Approval • Government • Technical • Review Panel • Contract • NGOs/CBOs • Oversees implementation • Grant agreement • Requests continued funding from the Global Fund for years 3-5 • Secretariat • PLW Diseases • Private sector • Religious/ • Faith-Based Organizations • Provides technical and capacity building support • Multi-/Bilateral • Development Partners

18. 31 March 2004: 149 grant agreements signed with 81 countries US$ 284 million disbursed to 77 countries NY-070626.001/020419VtsimSL001 The signings of grant agreements and disbursements to countries accelerated rapidly in 2003 December 2002 – March 2004 Grant Agreements Disbursements Note: Figures reflect totals at the end of each month from December 2002, when the first grant agreements were signed

19. NY-070626.001/020419VtsimSL001 The Global Fund’s First Biennial Partnership Forum • 7-8 July 2004 in Bangkok, just before the XV International AIDS Conference in Bangkok, 11-16 July 2004 • A broad-based consultative process • An opportunity for feedback from stakeholders and open debate on issues • Close linkage with capacity-building and training