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Global Fund praises new funding pledges by G8, underscores need for US$ 3 billion by end of 2004

06 June 2003

Evian Summit provides an additional US$ 1.2 billion in overall pledges

Global Fund faces urgent need for near-term pledges to fund Round 3 proposals

Geneva, Switzerland – On the occasion of its Fifth Board Meeting, the Global Fund implored public and private donors to contribute US$ 3 billion by the end of 2004 in order to fully finance anticipated country proposals to prevent and treat AIDS, TB and malaria. The Global Fund also praised the outcome of the recent Evian Summit, where G8 and African Heads of State, as well as the United Nations Secretary General, reaffirmed their support for the Global Fund.

Richard Feachem, Executive Director of the Global Fund, acknowledged the combined leadership of the United States and France in resource mobilization. “In authorizing up to US$ 1 billion for its 2004 fiscal year, President Bush and the US Congress challenged other donors to respond, and they have. President Chirac has led an effort for Europe to raise US$ 1 billion and called on public and private donors outside the US and Europe to also raise US$ 1 billion.”

The French Minister for Cooperation and Francophone Affairs, Pierre Andre Wiltzer – who attended the Board Meeting to build enthusiasm for an upcoming International Meeting to Support the Global Fund to be held in Paris on July 16 – explained that France will triple its previous annual pledge to provide 450 million euros between 2004 and 2006. This represents nearly 30% of the currently confirmed pledges for those three years.

Also since the G8 Summit, the European Commission has confirmed a minimum contribution of 340 million euros between 2003 and 2006; Italy has pledged an additional 200 million euros; and the UK has extended their previous commitment by US$ 80 million. In total, pledges to the Global Fund have increased by US$ 1.2 billion in one week, to US$ 4.6 billion through 2008. Nonetheless, only 23% of the Global Fund’s needs through 2004 are met by these pledges.

The most urgent need for resources is the Global Fund’s third round of proposals. Over 200 proposals have been received from 85 countries, requesting US$ 2 billion for two years. It is likely that at least half of these requests will be recommended to the Board for approval in October, but the Fund has only US$ 400 million in remaining pledges for 2003. Needs for 2004 include two more proposal rounds.

To date, the Board of the Global Fund has considered two proposal rounds, approving US$ 1.5 billion to 93 countries over two years. At today’s Board Meeting, an update made since these approvals was provided. Formal grant agreements have been signed for programs in 49 countries, and initial disbursements of US$ 32 million have been made to or requested for 27 countries. Disbursement amounts are increasing weekly.

Many countries have begun implementation of approved programs. In Sri Lanka, 10,000 malaria bednets have been purchased, and their distribution to 10,000 families will begin this month. Rwanda has begun a training program that will reach 75% of the country’s healthcare workers and will place people living with HIV on Fund-financed antiretrovirals this month. Honduras will also expand ARV treatment this month, and China has already expanded its coverage of TB treatment.

Reflecting on the proceedings of the meeting, Board Chairman Tommy G. Thompson said, “I am pleased with the important progress we made during the Fifth Meeting of the Board of the Global Fund. We strived to reach consensus on how we can more effectively work together as a Board and Secretariat, generate more resources for the Fund and implement policies that ensure our grants have maximum impact on those living with the diseases. But we recognize that there is much work to be done, especially in the areas of increasing contributions and developing innovative, aggressive strategies to fight HIV/AIDS, tuberculosis and malaria.”