Board Decisions

GF/B55/DP04

Approved by the Board on: 09 July 2026

Non-Global Fund-Financed Procurement Policy and Financial Mechanism

  1. The Board:
    1. recalls its approval through GF/B48/DP07 for the Secretariat’s continued operationalization of non-Global Fund-financed procurement orders for products and services as they become available on wambo.org;
    2. recognizes the evolving context, including the rapid emergence of regional and national pooled procurement mechanisms, and the overall need to support continued access to affordable, quality assured health products for HIV, tuberculosis and malaria programs;
    3. recognizes the need for a separate non-Global Fund-financed procurement mechanism to support future transactions, while safeguarding the Global Fund’s core resources for allocation and use in line with the recipient-driven, Board-determined priorities of the Global Fund; and
    4. notes that the Secretariat will ensure there is a dedicated 24-month review of the implementation of (i) the Policy on Non-Global Fund-Financed Procurement through the Pooled Procurement Mechanism (PPM)/wambo.org and (ii) the non-Global Fund financed procurement mechanism established below, to be presented to the Board through the relevant committees.

PART A: Policy on Non-Global Fund-Financed Procurement through the Pooled Procurement Mechanism (PPM)/wambo.org (the “Policy”)

  1. Based on the recommendation of the Strategy Committee (“SC”), the Board approves:
    1. The Policy on Non-Global Fund-Financed Procurement through the Pooled Procurement Mechanism (PPM)/wambo.org which sets out the principles that govern the procurement of goods and services offered through PPM/wambo.org for non-Global Fund-financed transactions, as set forth in Annex 1 to GF/B55/05 Rev 1;
    2. Delegation of authority to the Executive Director for operationalization of the Policy and directs the Secretariat to return to the SC at its October 2026 meeting with a further articulation of the safeguards to be established within the operational framework to achieve value for money, protect against market distortion and supplier concentration, and support effective oversight and reporting on implementation and associated risks for SC input; and
    3. Delegation to the SC of authority for governance oversight of the Policy, ensuring alignment with the Global Fund’s broader market shaping objectives and strategic priorities.

Additionally, the Board understands that for implementation of certain aspects of the Policy a reasonable transition period may be needed. The Board authorizes the Secretariat to allow for such a transition period when needed.

PART B: Non-Global Fund-Financed Procurement Mechanism

  1. Based on the recommendation of the Audit and Finance Committee (“AFC”), the Board:
    1. approves the establishment of the non-Global Fund financed procurement mechanism (“NGFPM”), as a segregated pool of restricted assets and liabilities decoupled from replenishment and allocation periods;
    2. agrees that the NGFPM is a Board-approved initiative for which the Global Fund may mobilize, in accordance with applicable policies, additional resources, which may be supported by credit enhancement and risk mitigation instruments;
    3. decides that NGFPM resources shall be available for the objectives of the Policy on Non-Global Fund-Financed Procurement through the Pooled Procurement Mechanism (PPM)/wambo.org, as set forth in Annex 1 to GF/B55/05 Rev 1, including for the offer and provision of funds through a pre-financing facility within the NGFPM, on such terms and conditions as the Secretariat may deem appropriate;
    4. delegates to the AFC the authority for the governance oversight of the NGFPM and the approval of the annual audited financial statements of the NGFPM;
    5. acknowledges that the financial framework developed by the Secretariat, leveraging existing Global Fund policies, principles and controls, shall guide the financial management of the NGFPM;
    6. affirms that the costs incurred in the establishment, initial operationalization and scale-up of the NGFPM will be funded through existing Secretariat resources and restricted financial contributions, with the aim that the NGFPM will become self-sustaining through a cost-recovery model to cover associated management and operating costs, and such costs shall not form part of the Global Fund’s annual budget for operating expenditures; and
    7. directs the Secretariat to include the NGFPM in regular reporting on financial performance.

Additionally, while the Board expects efforts will be made to fully implement NGFPM upon its approval, the Board understands that for implementation of certain aspects of the mechanism a reasonable transition period may be needed. The Board authorizes the Secretariat to allow for such a transition period when needed.

Budgetary Implications

Within the scope of the Board-approved GC8 NextGen Catalytic Investment (CI) priority, the Secretariat is exploring use of the CI to support selected initial scale-up costs. Additional costs directly attributable to implementation of the NGFP and management of the NGFPM will be covered through existing Secretariat resources and earmarked external private sector funds, and subsequently through cost-recovery fees generated by the mechanism. The anticipated resourcing costs, as well as the additional earmarked private sector funds mobilized for NGFPM initial scale-up, will be further clarified in the coming months. This costing will be presented to the AFC in October 2026 as part of the approval of the 2027 OPEX Budget.