Board Decisions

GF/B26/EDP11

Approved by the Board on: 24 August 2012

Approval of Transitional Funding Mechanism Proposals

1. 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.

2. 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.

3. Applicants whose proposals are recommended for funding as "Category 3" shall:

   1. 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

   2. 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.

4. 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.

5. Applicants whose proposals are recommended for funding as "Category 4" shall:

   1. submit a revised proposal, based on the parameters set out in the applicants' TRP review form; and

   2. 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.

6. The Secretariat will notify the Board of the outcomes of all Category 4 proposals.

7. 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'.

8. 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.

9. 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.