Board Decisions


Approved by the Board on: 30 June 2004


The Board replaces the current eligibility criteria of "co-financing" and "moving over time to an increasing reliance on domestic resources" with a single criterion termed "counterpart financing." The Board adopts the following definition of counterpart financing:

  1. Counterpart financing encompasses all domestic resources (including contributions from governments, loans from external sources or private creditors, debt relief proceeds, and private contributions such as from nongovernmental organizations, faith-based organizations, other domestic partners, and user fees) dedicated to the disease program;
  2. Counterpart financing is in the form of parallel financing.

The Board requests the Secretariat to only deem eligible proposals from Upper-Middle Income countries that demonstrate 20% counterpart financing, and from Lower-Middle Income countries that demonstrate 10% counterpart financing for the first year of proposed Global Fund grant implementation.

The Board requests proposals to demonstrate a progressive increase in counterpart financing over the proposed duration of a Global Fund proposal from 20% to 40% for Upper Middle Income countries and from 10% to 20% for Lower-Middle Income countries.

The Board exempts non-CCM proposals from the counterpart financing requirement.

The Board will not further define the eligibility criterion "focusing on poor or vulnerable populations" and instead will allow applicants to use their own definitions of poor or vulnerable populations. The Board requests the Secretariat to work with partners such as the World Health Organization, UNAIDS, and the World Bank to further refine this term in order to provide guidance to applicants.