Modification of Grant Renewals and Transition to New Funding
In light of current resource constraints, adopts the measures identified in Annex 1 in order to make available resources to provide for continuation of essential prevention, treatment and/or care services by current grantees.
Agrees to establish a Transitional Funding Mechanism as described in Annex 2 in order to provide this continuation funding.
Decides to convert Round 11 into a new funding opportunity consistent with the new Global Fund 2012-2016 Strategy, with a view towards funding proposals under the new model beginning in early 2014. Round 11 proposals that are updated as appropriate may form the basis for an application for the next funding opportunity.
Directs the Secretariat to work with countries and partners to develop full expressions of demand for programs for the three diseases and related health systems and civil society strengthening investments that are consistent with the new strategic approach envisioned in the new Strategy with such information to be available for the Mid-Term Replenishment.
Urgently requests donors to consider measures to increase and accelerate funding, and implementing country governments, especially those from middle-income countries, to increase funding for the three diseases and related health investments.
Delegates to the Board Chair, in consultation with the Vice-Chair, authority to make or delegate any additional decisions necessary to implement the above. The Board Chair shall report to the Board on any such decisions taken.
Annex 1: Financial Measures
Effective 1 January 2012, a revised application and approval process for renewals will be employed to ensure strategic investments, as described in “Options for Modification of the Application, Renewal and Approval Processes for New and Existing Investments,” (GF/B25/8).
Effective 1 January 2012, the following eligibility criteria for renewals applications will become effective:
Group of 20 (G-20) upper middle income countries with less than an extreme disease burden will no longer be eligible for renewals of grants; and
The counterpart financing and focus of proposal requirements under the Policy on Eligibility, Counterpart Financing and Prioritization will apply.
Transitional measures as described in GF/B25/8 will be made available to countries impacted by the above changes to eligibility.
The one-year Grace Period provision for changes in country income classification will be rescinded for both new proposals and grant renewals.
The TRP will support the renewals process by providing independent technical expertise to the Secretariat panel making recommendations on grant renewals.
The total funding approved for grant renewals for Low Income Countries will be no less than 55% of any annual funding window.
Additional Commitments (as defined in the Comprehensive Funding Policy) longer than one year shall be committed in annual tranches for renewals of existing grants.
Annex 2: Transitional Funding Mechanism
Grantees may apply for up to two years of funding for continuation of essential prevention, treatment and/or care programs currently financed by the Global Fund that will otherwise face disruption between 1 January 2012 and 31 March 2014.
The Secretariat, in consultation with partners and the TRP, will develop guidance on components of “essential prevention, treatment and/or care.”
Applicants must show that there are no alternative sources of funding available to fund the activities proposed.
The Policy on Eligibility, Counterpart Financing and Prioritization will apply.
Applications will be due 31 March 2012.
Second Wave NSA applications will also be subject to the criteria above.
The Health Systems Funding Platform will be suspended until the new funding model is operational.
Review and Approval Process
The TRP will assess applications for the Transitional Funding Mechanism in accordance with the criteria in its Terms of Reference and will also determine whether applicants demonstrate a risk of “disruption of essential prevention, treatment and/or care” services and that the activities cannot be funded by alternative sources of funding.
The Board or an appropriate committee, as determined by the Board Chair, will endorse the TRP‟s recommendations, and provide guidance on prioritization if demand exceeds supply.
Applications will be approved on a rolling basis. Funds may be committed in staggered commitments so as to minimize disruption of activities.
If programs face disruption before funds become available under the Transitional Funding Mechanism, the Secretariat (under the direction of the Board Chair) will develop a bridge funding mechanism to cover the disruption for the minimum amount and time necessary.
Options for modification of the application, renewal and approval processes for new and existing investments
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Related Decision Points:
Modification of Rules Governing Grant Renewals
Application of G-20 rule to the Transitional Funding Mechanism
Application of NGO Rule to the Transitional Funding Mechanism
Implementation of the 55% floor for funding for Low Income Countries
Decision Superseded by:
Revision of the Policy on Eligibility Criteria, Counterpart Financing Requirements and Prioritization of Proposals for Funding from the Global Fund
Transition from the Third to the Fourth Replenishment Period
Composition of and Allocation to Country Bands