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First Global Fund grants reach two-year renewal point

15 February 2005

Geneva, Switzerland - The Board of the Global Fund to Fight AIDS, Tuberculosis and Malaria has today approved renewed funding worth up to US$119 million for the first batch of grants to reach the two year mark.

The Global Fund approves funding for five years, but initially commits funding for only the first two year phase. The end of this first phase is a critical milestone in the lifespan of the grants, as well as for the performance-based funding model used by the Global Fund.

One of the Global Fund's key operating principles is that it will only fund programs that successfully contribute to the treatment and/or prevention of HIV/AIDS, tuberculosis and malaria. All grant agreements include performance indicators and targets (agreed upon by both the Principal Recipient and the Global Fund) for the measurement of program success.

To ensure that grant funding goes only where it is being managed and spent effectively, the Global Fund uses the Phase 2 review process as a checkpoint. Only grants with satisfactory performance measured against agreed targets for the first two years of a grant's life continue to receive funding for their remaining years. Each of the 21 grants approved today for continued funding was evaluated for tangible, verified, and significant results in Phase 1. With the approval of these funds, grant recipients in 16 countries will receive up to US$119 million for the second phase of the grants spanning years three to five.

The Global Fund now has US$3.1 billion approved for the first two years of grants in 127 countries. The 21 grants just approved for continued funding represent the first wave of evaluation at the two-year mark of the more than 300 grants now being financed by the Global Fund. New grant agreements have been signed almost monthly for the last two years, so evaluation of maturing grants will now become a regular part of Global Fund business operations.

The Global Fund's information management system compiles key information generated for each grant program into a Grant Performance Report on the life of the grant to date.

The following are the grants for which Phase 2 funding has been approved, as well as the amount recommended as an upper ceiling for phase 2 funding.

Proposal Round Recommended Round
1 Benin, Malaria-Round 1 USD 583,965
2 Burundi, HIV - Round 1 USD 3,780,000
3 China, TB - Round 1 USD 22,700,000
4 China, Malaria - Round 1 USD 2,882,997
5 Ghana, HIV - Round 1 USD 9,204,744
6 Ghana, TB- Round 1 USD 3,350,115
7 Haiti, HIV - Round 1*
Haiti, HIV - Round 1*
USD 35,547,100
8 Honduras, TB- Round 1 USD 2,806,514
9 Honduras, Malaria - Round 1 USD 3,108,090
10 India, TB- Round 1 USD 3,134,000
11 Lao PDR, Malaria - Round 1 USD 9,553,935
12 Madagascar, Malaria - Round 1 USD 249,764
13 Madagascar, HIV - Round 2** USD 756,425
14 Madagascar, HIV - Round 2** USD 1,992,068
15 Moldova, TB/HIV - Round 1 USD 6,461,106
16 Mongolia, TB- Round 1 USD 1,086,000
17 Morocco, HIV - Round 1 USD 4,499,948
18 Panama, TB- Round 1 USD 130,000
19 Rwanda, TB/HIV - Round 1 USD 6,231,778
20 Tajikistan, HIV - Round 1 USD 950,725
21 Tanzania/Zanzibar, Malaria - Round 1 USD 371,860

* The two Haiti HIV Round 1 grants represent grants from the same proposal which were split between two PRs. The Secretariat is recommending that these two grants be combined in one consolidated grant to one PR for Phase 2 (see the Grants Scorecards for more detail).

** The two Madagascar HIV Round 2 grants derive from separate proposals approved for the same disease component during the same round, and so require separate commitments for Phase 2.

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