Thirty-Sixth Board Meeting

Carsten Staur from the Point Seven constituency is designated as Rapporteur for the 36th Board Meeting.

<p>The agenda for the 36th Board Meeting (GF/B36/01) is approved.</p>

<p>The Board:<br /><br />1. Notes the successful launch of the Global Fund Fifth Replenishment (2017-2019) and the<br />importance of continuing to actively engage to mobilize increased resources throughout<br />the Replenishment cycle; and<br /><br />2. Requests that the Secretariat, under the oversight of the Audit and Finance Committee,<br />develop an ambitious action plan for attracting additional resources which may include<br />providing additional pledging opportunities for donors and maintains visibility of both<br />unfunded quality demand and progress in achieving impact, to be shared with the Board<br />at its 37th Meeting, and subsequently reported on by the Audit and Finance Committee<br />to the Board on a regular basis.</p>

<p>1. Based on the recommendation of the Audit and Finance Committee, the Board approves<br />the Amended and Restated Comprehensive Funding Policy, as set forth in Annex 1 to<br />GF/B36/02 - Revision 1.</p>

<p>1. Based on the recommendation of the Audit and Finance Committee (the "AFC"), as<br />presented in GF/B36/03, the Board decides the amount of sources of funds for allocation<br />for the 2017 - 2019 allocation period is USD 11.1 billion and comprised of the following<br />amounts:<br /><br />a. USD 10.0 billion, derived from the announced replenishment results of the Fifth<br />Replenishment (2017 - 2019) net of certain adjustments and qualifying deductions, in<br />accordance with the Amended and Restated Comprehensive Funding Policy set forth<br />in Annex 1 to GF/B36/02 - Revision 1; and<br /><br />b. USD 1.1 billion, the forecasted unutilized funds from the 2014 - 2016 allocation period<br />presented by the AFC and the Strategy Committee (the "SC") for inclusion in the<br />sources of funds for allocation for the 2017 - 2019 allocation period following<br />deliberations at the committees' October 2016 meetings.<br /><br />2. Based on the recommendation of the SC, as presented in GF/B36/03, the Board approves<br />USD 0.8 billion for the 2017 - 2019 allocation period's catalytic investments.<br /><br />3. Accordingly, the Board decides the amount of sources of funds for country allocations for<br />the 2017 - 2019 allocation period is USD 10.3 billion, of which USD 0.8 billion is to ensure<br />scale up, impact and paced reductions according to the allocation methodology approved<br />by the Board in April 2016 under decision point GF/B35/DP10.</p>

<p>1. The Board notes that up to USD 800 million is available for catalytic investments, subject<br />to the amount of sources of funds for allocation, in accordance with the allocation<br />methodology approved in April 2016 under decision point GF/B35/DP10 and set forth in<br />Annex 1 to GF/B35/05 - Revision 1.<br /><br />2. Based on the recommendation of the Strategy Committee (the "SC") and the amount of<br />sources of funds for allocation recommended by the Audit and Finance Committee (the<br />"AFC") in GF/B36/03, the Board decides USD 800 million will be available for catalytic<br />investments over the 2017 - 2019 allocation period for the priorities and associated costs<br />presented in Table 1 of GF/B36/04 - Revision 2, of which no portion will be moved to<br />further balance scale up, impact and paced reductions through country allocations.<br /><br />3. The Board notes the Secretariat will have flexibility to operationalize catalytic investments,<br />update the SC and Board on such operationalization, and present any reallocations of the<br />associated costs among the approved priorities for the SC's approval.<br /><br />4. The Board asks the Secretariat to provide the SC with a scope of effort and expected<br />outcomes at the start of all strategic initiatives and to seek SC approval during<br />implementation if there is a substantial change to the relevant strategic initiative's scope.</p>

<p>1. The Board notes:<br /><br />a. Its November 2016 approval (GF/B35/EDP19) of the terms of reference of the 2016<br />Executive Director Nomination Committee (the "Nomination Committee"), as set<br />forth in Annex 1 to GF/B35/ER15; and<br /><br />b. Consultations between the Ethics and Governance Committee and the Chair and<br />Vice-Chair of the Board with respect to the terms of reference of the Executive<br />Director, voting procedures for the selection of the next Executive Director, and<br />anticipated timelines for recruiting the next Executive Director, as outlined in<br />GF/B36/07.<br /><br />2. Accordingly, the Board approves:<br /><br />a. The revised terms of reference of the Executive Director, as presented in Annex 1 to<br />GF/B36/07, which shall supersede the terms of reference approved by the Board<br />under decision point GF/B26/EDP08 and set forth in Annex 1 to GF/B26/ER05;<br />and<br /><br />b. The voting procedure for the selection of the Executive Director, as presented in<br />Annex 2 to GF/B36/07, which shall supersede any prior versions of voting<br />procedures adopted for the selection of any direct report of the Board.</p>

<p>1. Based on the recommendation of the Audit and Finance Committee, the Board approves<br />the following:<br /><br />a. Corporate Work Plan and Budget Narrative 2017, as set forth in GF/B36/05B; and<br /><br />b. 2017 Operating Expenses Budget in the amount of USD 300.0 million, as set forth<br />in GF/B36/05A, which includes USD 17.1 million for the Office of the Inspector<br />General's 2017 operating expenses.</p>

1. The Board notes the additional analysis by the Secretariat to develop performance<br/>targets for the 2017-2022 Strategic Key Performance Indicator (the "KPI") Framework<br/>approved by the Board in June 2016 under the decision point GF/B35/EDP05 and set<br/>forth in Annex 1 to GF/B35/ER05 (the "Strategic KPI Framework").<br/><br/>2. To support the efforts of the Global Fund and partners to implement the 2017-2022<br/>Global Fund Strategy and achieve maximum impact, the Board requests:<br/><br/>a. Board constituencies to submit statements, questions, concerns or suggested<br/>revisions regarding the performance targets, including how country-level<br/>information or estimates will be considered, to the Secretariat by 30 November<br/>2016 followed by the Secretariat's response by 9 December 2016 to be<br/>communicated to all constituencies;<br/><br/>b. The Chairs and Vice-Chairs of the Audit and Finance Committee (the "AFC")<br/>and the Strategy Committee (the "SC") to determine, in accordance with the<br/>respective mandates of the AFC and SC, the performance targets to be<br/>addressed by each committee; and<br/><br/>c. The Chairs and Vice-Chairs of the AFC and the SC to establish a joint-committee<br/>advisory group (the "Advisory Group") by 9 December 2016 that will work with<br/>the Secretariat to present revised performance targets for the Strategic KPI<br/>Framework, based on country-level estimates where relevant and available in<br/>alignment with the principle of country ownership, to the AFC and SC for<br/>recommendation to the Board by the first week of March 2017.<br/><br/>3. The Advisory Group will:<br/><br/>a. Be comprised of four individuals selected from implementer constituencies and<br/>four individuals selected from donor constituencies and two representatives of<br/>the Technical Partners, in consultation with the Chairs and Vice-Chairs of the<br/>AFC and SC, to work with the Secretariat to present revised performance targets<br/>for the Strategic KPI Framework;<br/><br/>b. Consult with the Technical Review Panel and Technical Evaluation Reference<br/>Group;<br/><br/>c. Consider statements, questions, concerns or suggested revisions by Board<br/>constituencies, as well as responses provided by the Secretariat, to advise the<br/>Secretariat on presenting the AFC and SC with revised performance targets for<br/>the Strategic KPI Framework; and<br/><br/>d. Be dissolved upon the Board's approval of performance targets for the Strategic<br/>KPI Framework.<br/><br/>

1. The Board welcomes the invitation of the Government of Rwanda to host the Global Fund's<br/>37th Board Meeting on 03-04 May 2017.<br/><br/>2. Accordingly, the Board agrees to convene the 37th Board Meeting in Kigali, Rwanda.

<p>The Board: <br /><br />1. Approves the incremental funding recommended for each country disease component, and its constituent grants, as listed in Tables 1A and 1B of Section IV to GF/B36/ER01 ("Table 1A" and "Table 1B"); <br /><br />2. Acknowledges each country disease component's constituent grants will be implemented by the proposed Principal Recipients listed in Tables 1A and 1B, or any other Principal Recipient(s) deemed appropriate by the Secretariat in accordance with Global Fund policies; <br /><br />3. Affirms the incremental funding approved under this decision (a) increases the upper-ceiling amount that may be available for the relevant implementation period of each country disease component's constituent grants, (b) is subject to the availability of funding, and (c) shall be committed in annual tranches; and <br /><br />4. Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the "TRP") validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP. <br /><br />This decision does not have material budgetary implications for the 2016 Operating Expenses Budget.</p>

<ol> <li>The Board recalls its approval in November 2009 of the Board Constituency Funding Policy (GF/B20/DP7), as set forth in Annex 3 to GF/B20/4 (the "Existing Policy"), which makes funds available to Board constituencies of the Implementer Voting Group to facilitate engagement in the Global Fund's governance processes;</li> <li>Based on the recommendations presented in GF/B36/ER02, the Board approves the revised Board Constituency Support Policy, as set forth in Annex 1 to GF/B36/ER02 (the "Revised Policy").</li> <li>Accordingly, the Board: <ol type="a"> <li>Notes this decision point and the Revised Policy, which supersede the Board decision point GF/B20/DP7 and the Existing Policy, respectively;</li> <li>Delegates oversight of the Revised Policy to the Ethics and Governance Committee (the "EGC");</li> <li>Delegates to the EGC the authority to determine the Overall Funding Ceiling under the Revised Policy up to a threshold of an annual average of 1.5 million USD over the three-year period of the Funding Cycle;</li> <li>Notes that under the Revised Policy the estimated annual average of the Overall Funding Ceiling for the Funding Cycle 2017-2019 is 1.2 million USD; and</li> <li>Requests the Secretariat to provide the EGC with an annual report on the implementation of the Revised Policy.</li> </ol> </li> </ol> <p>Budgetary implications of the decision for Funding Cycle 2017-2019: an estimated annual average of 1,200,000 USD with be included in the OPEX budget for each year of the 2017-2019 Funding Cycle to support activities covered under the Revised Policy. (This annual average represents an increase of 200,000 USD over amounts approved in 2015 and 2016 OPEX budgets with respect to constituency funding. For 2017, this increase will be accommodated within the OPEX approved at the November 2016 Board Meeting).</p> <p>The Overall Funding Ceiling for future periods (from 2020 forward) will be approved by the EGC in line with the delegated authority from the Board outlined in clause 3c of this decision point.</p>

<p>1. The Board acknowledges the work carried out by the Secretariat to review the Global Fund's employee grievance and dispute resolution system, as well as the decisions reached by the Management Executive Committee (MEC) to strengthen internal components of this system (GF/B36/ER03).<br /><br />2. Regarding mechanisms for final resolution of employee grievances, the Board notes the review carried out by the Secretariat on the recognition of the jurisdiction of the International Labour Organization Administrative Tribunal (ILOAT), as compared with other available mechanisms.<br /><br />3. Noting the outcome of this review, and upon recommendation from the Audit and Finance Committee (AFC), the Board requests that the Secretariat continue its work in this area, specifically to (i) further explore available mechanisms for final resolution of employee disputes; and (ii) review the feasibility of implementing alternatives to the current system within the Global Fund's context. The Staff Council will be consulted as part of this exercise.<br /><br />4. Provided an alternative model is identified which is both feasible and considered by MEC to present advantages over the current ILOAT model, the Board requests that the Secretariat develop such an alternative model and present it to the AFC for review and decision at its October 2017 meeting. As part of its presentation to the AFC, the Secretariat will include an analysis of the projected costs of any proposed alternative model, as compared with the current ILOAT model.</p>

<p>The Board:<br /><br />1. Approves the incremental funding recommended for each country disease component, and its constituent grants, as listed in Tables 1a, 1b and 1c of Section IV to GF/B36/ER04 ("Table 1a", "Table 1b" and "Table 1c");<br /><br />2. Notes the incremental funding approved for APN+, as set forth in Table 1c, is conditioned on the fulfilment of certain time-bound requirements, as described in GF/B36/ER04, and that the Secretariat will inform the Board of the final grant outcome following the relevant deadlines outlined in GF/B36/ER04.<br /><br />3. Acknowledges each country disease component's constituent grants will be implemented by the proposed Principal Recipients listed in Tables 1a, 1b and 1c, or any other Principal Recipient(s) deemed appropriate by the Secretariat in accordance with Global Fund policies;<br /><br />4. Approves the reinvestment of within-allocation efficiencies for the Solomon Islands TB and South Africa TB/HIV grants and their resultant total program budget, as listed in Table 2 of Section IV to GF/B36/ER04;<br /><br />5. Acknowledges the original grant duration, as expressed by either the implementation or budgeted period, of each country disease component and its constituent grants listed in Table 3 of Section IV ("Table 3") is shortened according to the operational flexibility granted to the Secretariat pursuant to GF/B31/DP09;<br /><br />6. Approves the additional incremental funding and/or implementation period recommended for (a) Iraq TB and (b) Zimbabwe malaria, and each component's constituent grants, as listed in Table 3, based on the available funding that the Finance and Operational Performance Committee (the "FOPC") validated pursuant to GF/FOPC17/DP02;<br /><br />7. Acknowledges the grant duration and related funding originally approved by the Board for those country components that participated in the concept note process in 2013 as part of the transition to the allocation-based funding model authorized under GF/B28/DP05 (the "Early Applicants") will end on or before 30 June 2017 and accordingly will need additional funding to bridge the relevant program implementation until 31 December 2017, the typical end date of grant programs arising from the 2014 - 2016 allocation period;<br /><br />8. Approves the additional incremental funding and implementation period recommended for disease components (i) EMMIE malaria, (ii) Myanmar malaria, (iii) Myanmar TB/HIV and (iv) RAI malaria, being Early Applicant grants, as listed in Table 3, based on the available funding that the FOPC validated pursuant to GF/FOPC17/DP02;<br /><br />9. Affirms the (additional) incremental funding approved under this decision (a) increases the upper-ceiling amount that may be available for the relevant implementation period of each country (or, as the case may be, regional) disease component's constituent grants,<br />GF/B36/ER04 (b) is subject to the availability of funding, and (c) shall be committed in annual tranches; and<br /><br />10. Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the "TRP") validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</p> <p> </p>

<p>The Board:<br /><br />1. Notes the Secretariat's review of the items on the 2014 - 2016 allocation period's unfunded quality demand ("UQD") register, as described GF/B36/ER04;<br /><br />2. Approves the additional incremental funding recommended for certain UQD of the following country disease components: (i) Bangladesh TB, (ii) Central African Republic TB/HIV, (iii) Myanmar TB, (iv) Philippines TB, and (v) Viet Nam TB, as listed in Table 4 of Section IV to GF/B36/ER04, based on the available funding that the FOPC validated pursuant to GF/FOPC17/DP02;<br /><br />3. Affirms the additional incremental funding approved under this decision (a) increases the upper-ceiling amount that may be available for the relevant implementation period of each country disease component's constituent grants, (b) is subject to the availability of funding, and (c) shall be committed in annual tranches; and<br /><br />4. Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the "TRP") validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</p>

<p>The Board:</p> <ol> <li>Approves the incremental funding recommended for each country disease component, and its constituent grants, as listed in Table 1 of Section IV to GF/B36/ER06 (“Table 1”);</li> <li>Acknowledges each country disease component’s constituent grants will be implemented by the proposed Principal Recipients listed in Table 1, or any other Principal Recipient(s) deemed appropriate by the Secretariat in accordance with Global Fund policies;</li> <li>Approves the additional funding for the South Africa TB/HIV program and its resultant total program budget, as listed in Table 1;</li> <li>Affirms the incremental funding approved under this decision (a) increases the upper-ceiling amount that may be available for the relevant implementation period of each country disease component’s constituent grants, (b) is subject to the availability of funding, and (c) shall be committed in annual tranches; and</li> <li>Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the “TRP”) validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</li> </ol>

<p>(Board meeting report document available below)</p>

<p>The Board approves the appointment of Ana Filipovska as a voting member of the Ethics and Governance Committee (the “EGC”) for a term that will expire in May 2018, or until the appointment of her successor.</p>

<ol> <li>The Board notes the additional analysis to develop performance targets for the 2017 – 2022 Strategic Key Performance Indicator (the “KPI”) Framework approved by the Board in June 2016 under decision point GF/B35/EDP05 and set forth in Annex 1 to GF/B35/ER05 (the “Strategic KPI Framework”).</li> <li>Based on the recommendation of the Audit and Finance Committee and the Strategy Committee, as set forth in GF/B36/ER08A and GF/B36/ER08B, the Board: <ol type="a"> <li>Approves the performance targets where proposals are complete;</li> <li>Approves the proposed interim indicator proposals for KPIs 5 and 9c; and</li> <li>Agrees with postponing its review and approval of performance targets for KPIs 6a, 6b and 6e until the final Board meeting of 2017.</li> </ol> </li> </ol>

<p>The Board:</p> <ol> <li>Acknowledges the original grant duration, as expressed by either the implementation or budgeted period, of Nigeria malaria and its constituent grants, as described in GF/B36/ER09, was shortened according to the operational flexibility granted to the Secretariat pursuant to GF/B31/DP09 when approved by the Board in January 2015 under GF/B32/EDP05;</li> <li>Approves the redistribution of funding available to Nigeria malaria, and its constituent grants, under the Board’s approval of additional funding in January 2015 (GF/B32/EDP05) as well as the additional implementation period recommended for Nigeria malaria, and its constituent grants, as listed in Tables 1a and 1b of GF/B36/ER09 and described in GF/B36/ER09, paragraph 1.4;</li> <li>Acknowledges Nigeria malaria’s constituent grants will be implemented by the proposed Principal Recipients listed in Tables 1a and 1b, or any other Principal Recipient(s) deemed appropriate by the Secretariat in accordance with Global Fund policies;</li> <li>Affirms the funding available for Nigeria malaria under GF/B32/EDP05 and this decision (a) remains the upper-ceiling amount that may be available for the relevant implementation period of each constituent grant, (b) is subject to the availability of funding, and (c) shall be committed in annual tranches; and</li> <li>Delegates to the Secretariat authority to redistribute the overall upper-ceiling of funding available for each country disease component among its constituent grants, provided that the Technical Review Panel (the “TRP”) validates any redistribution that constitutes a material change from the program and funding request initially reviewed and recommended by the TRP.</li> </ol>

<ol> <li>Based on the recommendation of the Chair and Vice-Chair of the Board (the “Board Leadership”), in consultation with the Ethics and Governance Committee (the “EGC”), the Board: <ol type="a"> <li>Notes its responsibilities with regard to the recruitment process of the Executive Director as set out in Article 36 of the Operating Procedures of the Board and Committees of the Global Fund to Fight AIDS, Tuberculosis and Malaria (“BCOP”);</li> <li>Notes the consultations of the Board Leadership and the EGC in relation to this process, including with respect to the establishment of the nomination committee referred to in the BCOP and the selection of an executive search firm, in accordance with Global Fund procurement regulations, to provide support to the nomination committee in carrying out its mandate; and</li> <li>Approves the terms of reference of the 2017 Executive Director Nomination Committee, as set out in Annex 1 to GF/B36/ER10.</li> </ol> </li> <li>The Board requests the Board Leadership to submit a Chair, Vice-Chair and the membership of the nomination committee to the Board for approval.</li> </ol>