Twenty-Sixth Board Meeting

Dr. Reinhard Tittel-Gronefeld from the Germany (Canada, Switzerland) constituency is designated as rapporteur for the Twenty-Sixth Board Meeting.

The agenda for the Twenty-Sixth Board Meeting (GF/B26/01) is approved.

The report of the Twenty-Fifth Board Meeting (GF/B25/08 Revision 1) is approved.

<p>1. The Board affirms the Finance and Operational Performance Committee (the “FOPC”) is authorized to approve operating expenditures that do not result in an increase in the amount of the Board-approved operating expenses budget for any financial year.</p><p>2. The FOPC is authorized to establish a framework to determine when decision-making authority on adjustments, reallocations or additions to the operating expenses budget may be taken by the Secretariat or FOPC provided that:</p><blockquote><p>a. such decision does not result in an increase in the operating expenses budget approved by the Board for the relevant financial year;</p></blockquote><blockquote><p>b. the FOPC shall consult with the Secretariat to develop appropriate criteria and thresholds within such criteria to establish this decision-making framework; and</p></blockquote><blockquote><p>c. decisions taken by the Secretariat shall be reported to the FOPC and decisions taken by the FOPC shall be reported to the full Board.</p></blockquote>

<ol> <li>The Board notes that: <ol type="a"> <li>it has previously made decisions restricting the timeframe for signing grant agreements, placing parameters around the flexibility to set grant start dates, limiting the ability to extend the total length of a grant, and detailing the process for Phase 2 and Periodic Reviews;</li> <li>the principles surrounding these decisions remain valid and support the Global Fund’s mandate to efficiently and effectively provide funding to programs while ensuring that only strategic, cost-effective investments are made; and</li> <li>while the general principles remain valid, there is a need to allow for additional flexibilities, where necessary, to ensure the Secretariat is able to independently respond to grant specific needs while managing day-to-day grant management operations.</li> </ol> </li> <li>In order to address certain operational constraints and increase the efficiency and effectiveness of the Secretariat in grant management operations, the Board <ol type="a"> <li>further delegates to the Secretariat, in line with the authorities provided under GF/B24/EDP/4, the authority to approve extensions of up to three months to the signing timeframe for future approved proposals on an exceptional case-by-case basis and only in situations in which there is a strong justification for granting an extension;</li> <li>extends the authorities provided under GF/B24/EDP/7 by delegating to the Secretariat the authority to make exceptions, due to operational needs, to the general principle that grant start dates should not be set beyond 15 months, or 18 months, as applicable, after Board approval of a proposal; so long as no exception results in a grant start date being set beyond 22 months after Board approval of a proposal;</li> <li>delegates to the Secretariat the authority to make exceptions, due to compelling circumstances, to the existing policy which only allows for a maximum extension period of six months to the total length of a grant’s implementation period, at the end of a program; so long as any extension does not lengthen the total implementation period by more than twelve additional months; and</li> <li>delegates to the Secretariat the authority to, on an exceptional case-by-case basis: <ol type="i"> <li>provide additional no-cost extensions to the current grant implementation period during the renewals process, based on specific grant related circumstances, to allow for continued grant implementation; and Delegation of Authority to Secretariat for Grant Operations</li> <li>amend conditions upon which the Board has conditioned the approval of incremental funding where necessary to account for changes in circumstances; so long as measures are available to effectively mitigate the risk addressed in the condition.</li> </ol> </li> </ol> </li> <li>In order to ensure proper oversight, the Secretariat must limit the ability to approve the use of the delegations of authority granted above to the appropriate panel or committee of senior managers within the Secretariat</li> <li>The Board requests that the Secretariat prepare a report twice a year detailing any exceptions or extensions approved in connection with this decision point and submit such report to the Strategy, Investment and Impact Committee (the “SIIC”) for review. The first such report will be submitted to the SIIC prior to its first meeting in 2013.</li> </ol>

<p>1. Given the new and encouraging financial forecasts presented to the Global Fund’s Board at its Twenty-Sixth Meeting in Geneva in May 2012, the Board decides to accelerate the implementation of the new Global Fund Strategy ‘Investing for Impact’ by opening new funding opportunities starting in late September 2012 to allow for Board funding decisions to be made no later than the end of April 2013.</p> <p>2. The Secretariat, under the guidance of the Strategy, Investment and Impact Committee (‘SIIC’), will design in consultation with countries, partners and other stakeholders, the elements of the new funding models, including the structure and parameters of the new ‘iterative process’, options for distribution of funds available, and other elements, and the SIIC will bring its recommendation to a special Board meeting in September 2012.</p> <p>3. The Finance and Operational Performance Committee will work with the Secretariat to test the resource forecasting model on a monthly basis and confirm the resource forecast in September 2012.</p> <p>4. As soon as possible, and under the oversight of the SIIC, the Secretariat will work with countries and partners to develop estimates 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 and take into account existing resources available in country, by September to inform the Board and other stakeholders and to aid replenishment.</p> <p>5. The new funding models will be developed in line with the new Strategy and the principles articulated in the Framework Document that the ‘Fund will base its work on programs that reflect national ownership and respect country-led formulation and implementation processes’.</p> <p>6. It is envisaged that this will :</p> <blockquote> <p>a. create a specific opportunity for countries to assess the gap between national coverage levels for the 3 diseases and actual need;</p> </blockquote> <blockquote> <p>b. permit the establishment of multiple funding opportunities per year and have a mechanism that allows for high quality, grant ready proposals to be financed as funding becomes available ;<br />Accelerating Implementation of the Global Fund Strategy</p> </blockquote> <blockquote> <p>c. ensure a comprehensive and specific analysis of complementarity among funders; and</p> </blockquote> <blockquote> <p>d. increase the sustainability of Global Fund supported programs.</p> </blockquote>

<p>The Board:</p> <blockquote> <p>1. Refers to its decision on the Modification of Grant Renewals and Transition to New Funding (GF/B25/DP16) which, among other adopted measures, required that the total funding approved for grant renewals for Low Income Countries be no less than 55% of any annual funding window (the “55% Rule”);</p> </blockquote> <blockquote> <p>2. Acknowledges that the 55% Rule is intended to drive resources toward the places with the greatest need and least ability to address the three epidemics, and that existing policies, including the Policy on Eligibility, Counterpart Financing and Prioritization, already shape the Global Fund portfolio by directing resources and requiring middle-income implementing countries to contribute financial resources to the response;</p> </blockquote> <blockquote> <p>3. Notes unintended consequences of the 55% Rule and some negative impact on achievement of the targets of the Global Fund Strategy and on vital programs targeted for the poorest people in lower middle-income countries; and</p> </blockquote> <blockquote> <p>4. Directs the Secretariat to develop further analysis of the 55% Rule in consultation with the Strategy, Investment, and Impact Committee at its next meeting, with a recommendation to the Board before its November meeting. Until that time, the Board decides to freeze the implementation of the 75% ceiling on grant renewals funding for Lower-Middle Income Countries and above (including on the four approved grant renewals affected by its implementation).</p> </blockquote>

<p>The Board:</p> <blockquote> <p>1. Establishes an ad hoc nominations committee (‘AHNC’) to assist the Board with its selection of the next Executive Director.</p> </blockquote> <blockquote> <p>2. Notes the constituency nominations for members of the AHNC, and appoints the following individuals as members, each serving in his or her personal capacity:</p> </blockquote> <blockquote> <blockquote> <p>Don Baxter<br />Agnes Binagwaho<br />Karlo Boras<br />Nils Daulaire<br />Mireille Guigaz<br />Masaki Noke</p> </blockquote> </blockquote> <blockquote> <p>3. Requests the AHNC to initiate the selection process in accordance with its Terms of Reference, including the timely appointment of three non-constituency affiliated members to facilitate the work of the AHNC.</p> </blockquote>

The Board approves the Global Fund’s 2011 Annual Report and 2011 Consolidated Financial Statements, which have been audited by Ernst &amp; Young Ltd.

<p>The Board:</p> <ol> <li>Approves additional funding for the next implementation period for the grants listed in Table 1 in the amounts indicated for each grant, based on the understanding that the amounts approved are upper ceilings rather than final funding amounts for that period and that the Secretariat shall pursue on-going implementation arrangements for each grant consistent with the recommendations set forth in the Grant Score Card for each grant. Approval is also subject to the provision that funding for renewals of existing grants shall be committed in annual tranches, subject to the availability of funding (GF/B25/DP16, para 7 of Annex 1).</li> <li>Reaffirms that the maximum funding amount available for the next implementation period of each grant shall be the sum of the amount set out in Table 1 of this Decision for that grant and the amount of any funds approved for the prior implementation period which have not been utilized during that period, either undisbursed funds or cash balances held by recipients under the grant.</li> </ol> <p>See attached tabledetailing total recommended funding amount of US$ 420,336,975 for the following grants: COM-810-G03-M ; ETH-202-G03-H-00 ; HTI-102-G09-H ; NGA-809-G11-M ; NGA-809-G13-M ; NGA-809-G14-M ; UZB-809-G04-M ; ZAM-809-G21-H ; ZAM-809-G22-H ; ZAM-809-G23-H</p>

<p>The Board approves additional funding for the Phase 2 period of the Ethiopia Round 8 Malaria grant (ETH-809-G10-M) as a ‘Conditional Go’ in the amount of up to US$ 114,264,421 subject to Technical Review Panel clarifications and conditions within a limited timeframe, and any additional conditions to be cleared by the Secretariat. Approval is also subject to the provision that continued funding for the grant shall be committed in annual tranches, subject to the availability of funding (GF/B25/DP16, para 7 of Annex 1).</p>

<p>The Board:</p> <ol> <li>Approves additional funding for the next implementation period[1] for the grants listed in Table 1 in the amounts indicated for each grant, based on the understanding that the amounts approved are upper ceilings rather than final funding amounts for that period and that the Secretariat shall pursue on-going implementation arrangements for each grant consistent with the recommendations set forth in the Grant Score Card for each grant. Approval is also subject to the provision that funding for renewals of existing grants shall be committed in annual tranches, subject to the availability of funding (GF/B25/DP16, para 7 of Annex 1).</li> <li>Reaffirms that the maximum funding amount available for the next implementation period of each grant shall be the sum of the amount set out in Table 1 of this Decision for that grant and the amount of any funds approved for the prior implementation period which have not been utilized during that period, either undisbursed funds or cash balances held by recipients under the grant.</li> </ol> <p>See attached tabledetailing total recommended funding amount of US$ 81,836,373 for the following grants: COL-809-G02-M ; COL-809-G03-M ; ARM-809-G04-S ; ARM-202-G05-H-00 ; ARM-202-G06-H00 ; DMR-309-G07-T ; TUN-810-G02-T ; TUN-810-G03-T ; BUL-809-G03-T ; RUS-304-G02-T ; IRN-810-G04-H ; TCD-810-G07-T ; CIV-809-G08-M ; CIV-809-G09-M ; AFG-809-G08-M</p>

<p>The Board:</p> <ol> <li>Approves bridge funding for the grants listed in Table 2 in the amounts indicated for each grant, based on the understanding that the amounts approved are upper ceilings rather than final funding amounts and are approved for the continuation of essential programs up to the period of the Transitional Funding Mechanism (GF/B25/DP16 Annex 2).</li> </ol> <p>See attached tabledetailing total recommended funding amount of USD 1,745,524 for the following grants: RUS-304-G01-H ; RUS-506-G05-H</p>

<ol><li>The Board refers to the Mozambique Round 8 Health Systems Strengthening grant (MOZ-809-G08-S) which has not begun implementation more than 24 months from the original Board approval of the proposal.</li><li>Noting that the Country Coordinating Mechanism has requested a material re-programming of the program, the Board approves the grant to be re-launched with additional funding of up to USD 5,653,933 and with one additional year of implementation, subject to the approval of the Technical Review Panel (‘TRP’) to the re-programming and any clarifications which the TRP may require, so that the program will be implemented for a total of three years from the date of the re-launch.</li></ol>

<p>In accordance with the Board-adopted Global Fund Human Resources Policy Framework (GF/EDP/08/16 – Annex 1), any staff salary above CHF 245,000 requires Board approval. The Board authorizes the Secretariat to enter into a contract of employment with a new Chief Financial Officer within the Grade 09 level with an annual salary above CHF 245,000 and below the ceiling for Grade 09 salaries of CHF 349,800.</p>

<p>The Board approves revised Terms of Reference for the Executive Director as set out in Annex 1 to Electronic Report B26/ER/05, which shall be used as the basis for the recruitment of a new Executive Director.</p>

<p>The Board:</p> <ol> <li>Approves additional funding for the next implementation period[1] for the grants listed in Table 1 in the amounts indicated for each grant, based on the understanding that the amounts approved are upper ceilings rather than final funding amounts for that period and that the Secretariat shall pursue on-going implementation arrangements for each grant consistent with the recommendations set forth in the Grant Score Card for each grant. Approval is also subject to the provision that funding for renewals of existing grants shall be committed in annual tranches, subject to the availability of funding (GF/B25/DP16, para 7 of Annex 1).</li> <li>Reaffirms that the maximum funding amount available for the next implementation period of each grant shall be the sum of the amount set out in Table 1 of this Decision for that grant and the amount of any funds approved for the prior implementation period which have not been utilized during that period, either undisbursed funds or cash balances held by recipients under the grant.</li> </ol> <p>See attached tabledetailing total recommended funding amount of US$ 130,325,572 for the following grants: BLR-304-G01-H ; BRN-910-G09-M ; BRN-910-G10-M ; CPV-810-G01-H ; CPV-810-G02-H ; PRK-810-G02-T ; SLV-910-G08 ; SLV-910-G07-T ; ERT-910-G07-M ; FJI-T-MOH ; LSO-809-G07-H ; MDG-810-G13-T ; MDG-810-G14-T ; MNT-910-G03-H ; NIC-202-G05-T-00 ; PRY-910-G06-S ; SER-910-G06-T ; SER-910-G07-T ; SLB-810-G01-T ; SWZ-809-G08-S ; TAJ-304-G02-T</p>

<p>The Board:</p> <ol> <li>Approves additional funding for the next implementation period of the Ghana Round 8 HIV grants (GHN-809-G09-H; GHN-809-G10-H; GHN-809-G11-H; and GHN-809-G12-H) as a ‘Conditional Go’ in the amount of US$ 43,524,540 subject to Technical Review Panel (‘TRP’) clarifications and conditions within a limited timeframe, and any additional conditions to be cleared by the Secretariat. Approval is also subject to the provision that continued funding for the grant shall be committed in annual tranches, subject to the availability of funding (GF/B25/DP16, para 7 of Annex 1).</li> <li>Reaffirms that the maximum funding amount available for the next implementation period of these grants shall be the amount approved by this decision and the amount of any funds approved for the prior implementation period which have not been utilized during that period, either undisbursed funds or cash balances held by recipients under the grants.</li> </ol>

<ol> <li> <p>The Board endorses the Technical Review Panel (TRP) Recommendation Categories for the Transitional Funding Mechanism (TFM) as set forth in the GF/B26/ER 07.</p> </li> <li> <p>The Board approves all TFM proposals recommended for funding by the TRP as Categories 1, 2, and 3 as indicated in Annex 1 of GF/B26/ER 07, subject to all applicable clarifications or conditions outlined in TRP review forms. The aggregate total of the maximum upper ceilings of funding for Category 1, 2 and 3 TFM proposals is US$ 419.8 million.</p> </li> <li> <p>Applicants whose proposals are recommended for funding as "Category 3" shall:</p> <ol type="a"> <li> <p>provide an initial detailed written response to the requested TRP clarifications no later than four (4) weeks after the applicant's receipt of notification in writing by the Secretariat of this Board decision; and</p> </li> <li> <p>conclude the TRP clarifications process, as indicated by the written approval of the Chair and Vice Chair of the TRP, not later than eight (8) weeks after the Secretariat's receipt of the applicant's initial detailed response to the issues raised for clarification and/or adjustment.</p> </li> </ol> </li> <li> <p>The Board conditionally approves all TFM proposals which are recommended for funding by the TRP as "Category 4" as indicated in Annex 1 of GF/B26/ER 07 subject to review and approval by the TRP of the revised TFM proposals. The Board notes that applicants whose proposals are recommended for funding as "Category 4" submitted proposals in need of substantial revision despite risks of disruption of essential prevention, treatment and/or care services during the TFM eligibility period of 1 January 2012 and 31 March 2014. The aggregate total of the maximum upper ceilings of funding for Category 4 TFM proposals is US$ 91.2 million.</p> </li> <li> <p>Applicants whose proposals are recommended for funding as "Category 4" shall:</p> <ol type="a"> <li> <p>submit a revised proposal, based on the parameters set out in the applicants' TRP review form; and</p> </li> <li> <p>complete the revised proposal review process, including anyclarification which the TRP may require, within the timeframe stipulated in the TRP review form resulting from such a review.</p> </li> </ol> </li> <li> <p>The Secretariat will notify the Board of the outcomes of all Category 4 proposals.</p> </li> <li> <p>The Board declines to approve for funding those proposals recommended by the TRP as "Category 5." These proposals are eligible to appeal this decision subject to the grounds and process for appeals as stipulated in the 'Rules Governing the Global Fund's Appeal Mechanism for Applications not Approved for Funding'.</p> </li> <li> <p>The Board notes that many applicants will face disruption during the second half of 2013 or in 2014, the latter stages of the TFM eligibility period. There may be circumstances where there are advantages to signing a TFM grant closer to the date of disruption, including circumstances created by the Board's decision to accelerate the implementation of the Global Fund Strategy (GF/B26/DP6). As such, the Board decides that TFM grants may be signed beyond the currently required 12-month period after Board approval of a proposal (GF/B8 Timeframes for Grant Agreements, Decision Point 2) and may have start dates that are beyond 15 or 18 months after Board approval, as applicable, in accordance with their respective disruption dates.</p> </li> <li> <p>The Board's approval of proposals is made with the clear understanding that the proposal amounts recommended for funding by the TRP, as set forth in Annex 1 - GF/B26/ER 07, are maximum upper ceilings rather than final approved grant amounts and are subject to reduction upon successful completion of TRP clarifications, TRP reviews of revised proposals, and grant negotiations.</p> </li> </ol>

<p>The Board:</p> <ol> <li>Approves additional funding for the next implementation period[1] for the grants listed in Table 1 in the amounts indicated for each grant, based on the understanding that the amounts approved are upper ceilings rather than final funding amounts for that period and that the Secretariat shall pursue on-going implementation arrangements for each grant consistent with the recommendations set forth in the Grant Score Card for each grant. Approval is also subject to the provision that funding for renewals of existing grants shall be committed in annual tranches, subject to the availability of funding (GF/B25/DP16, para 7 of Annex 1).</li> <li>Reaffirms that the maximum funding amount available for the next implementation period of each grant shall be the sum of the amount set out in Table 1 of this Decision for that grant and the amount of any funds approved for the prior implementation period which have not been utilized during that period, either undisbursed funds or cash balances held by recipients under the grant.</li> </ol> <p>See attached tabledetailing total recommended funding amount of US$ 99,032,607 for the following grants: BAN-202-G11-H-00 ; BAN-202-G12-H-00 ; BAN-202-G13-H-00 ; LBR-810-GO7-H ; SUD-T-UNDP</p>

<p>The Board approves additional incremental funding up to EUR 1,075,944 for the Phase 2 period of the Colombia malaria grant (COL-809-G02-M) with conditions stipulated in its B26/EDP/04 decision of 20 June 2012.</p>