Board Decisions

GF/B14/DP21

Approved by the Board on: 03 November 2006

UNITAID ACT Initiative

The Board acknowledges UNITAID's offer to finance the purchase by UNICEF as procurement agent of artemisinin-based combination therapy (ACT) medicines (the "ACT Contributions"), for eligible programs financed by the Global Fund (the "GF Programs") for the scale-up of their existing ACT targets. The Board acknowledges, further, UNITAID's initial approval of US$9,050,000 (the "Initial ACT Funding") to finance ACT Contributions, and acknowledges UNITAID's intention to approve additional funding for ACT Contributions (the "Additional Funding") once the Fund Secretariat has determined the estimated maximum amount needed for the scale-up of potentially eligible Global Fund Programs through their Phase 2 (the "Maximum ACT Amount"). The Additional Funding shall be equal to the difference between the Maximum ACT Amount and the Initial ACT Funding.

The Board accepts, in principle, UNITAID's request that the Global Fund assume sole responsibility for (a) the determination of which GF Programs shall receive ACT Contributions; (b) the adjustment of the relevant grant agreements to reflect ACT scale-up; (c) the monitoring of GF Program results linked to ACT scale-up; (d) the authorization of shipments of ACT Contributions to GF Programs procured by UNICEF based on performance; and (e) the determination at the end of Phase 1 of funding (where applicable) of whether GF Programs that are receiving ACT Contributions shall continue to receive ACT Contributions during their Phase 2. However, the Global Fund discourages non-competitive use of procurement agents so this is not intended to set a precedent.

The Board requests the Secretariat to contact Country Coordinating Mechanisms and Principal Recipients which, based on past performance, appear to have demonstrated the capacity to scale up existing ACT targets, and invite them to apply for ACT contributions, by stating in their applications the value of such requested ACT contributions. Based on these applications, the Secretariat shall calculate the Maximum ACT Amount so that the UNITAID Board can approve the Additional Funding.

Once UNITAID has approved the Additional Funding, the Global Fund Board shall, if appropriate, delegate to the Secretariat the authority to do the following: 

1. enter into contracts with UNITAID and UNICEF to document how ACT Contributions by UNITAID will be financed and made available;
2. determine which GF programs shall receive ACT Contributions ("Approvals"), subject to the following:
   1. The Local Fund Agent shall make recommendations with respect to the capacity of Principal Recipients to implement the proposed scale-up, and the Secretariat shall consider such recommendations prior to any Approvals;
   2. The Technical Review Panel ("TRP") shall make funding recommendations with respect to applications where the scale-up in ACT targets causes material variations in other objectives of the relevant GF Program; and
   3. The total value of the ACT Contributions authorized by the Secretariat shall not exceed the Maximum ACT Amount;
3. negotiate and execute amendments of grant agreements reflecting the approved scale-up and ACT Contributions; and
4. monitor the GF Program results linked to ACT scale-up and authorize the delivery of ACT Contributions procured by UNICEF to GF Programs based on performance. 

The Board requests the Secretariat to report back to it on implementation of this decision at the Fifteenth Board meeting.