Grant Renewals

Global Fund grants are divided into two phases:

• Phase 1: the initial two-year period for which a grant agreement (PDF - 407 KB) is signed with a Principal Recipient. 
• Phase 2: the period from the end of the second year to the end of the period covered by the approved proposal (typically, an additional three years). At this stage the grant agreement is extended to cover the full term.

Towards the end of Phase 1, the Global Fund conducts a thorough review process to ensure that grant funding is managed and spent effectively and programs are achieving expected results. Funding decisions are made to continue or accelerate implementation, reduce funding, invest in systems strengthening, or in extreme situations stop funding. The Phase 2 review process is therefore a critical milestone in the grant life cycle and for the performance-based funding model used by the Global Fund.

Key steps and actors involved

• At the end of month 18, the Country Coordinating Mechanism makes a formal request for continued funding (PDF - 678 KB) for the remainder of the period covered by the approved proposal.
• The Local Fund Agent prepares a Phase 2 Assessment Report , which contains a review of the funding request, an independent assessment of the performance of the grant and a recommendation on continued funding.
• On receipt of the Phase 2 Assessment Report, the Secretariat carries out its own multidisciplinary review of the grant, including independent reviews by the Finance, Performance and Procurement Teams, and prepares a grant scorecard which forms the basis for the Phase 2 funding decision taken by the Global Fund Board.
  The grant scorecard contains:
• An overall evaluation of performance (including results achieved against targets)
• Analysis of expenditure and cash balance
• Review of contextual factors
• Assessment of Phase 2 budget and implementation arrangements
• Recommendation for continued funding
• If the Country Coordinating Mechanism has requested significant changes in the activities to be implemented by a grant for Phase 2 or if the Secretariat determines that the CCM request would entail a material reprogramming of the original proposal (a “Revised Request”), the Secretariat will refer the matter to the Technical Review Panel which will then make a funding recommendation to the Board.
• The Board decides whether or not to commit additional resources for the remainder of the period covered by the proposal (up to three years).

Performance-based funding outcome

Continued funding recommendation

Phase 2 grant renewal amount