Table – International Partner Funding, by Account
Participation in the Global Fund to Fight AIDS, Tuberculosis and Malaria (Global Fund), an international financing mechanism, is an integral part of the Administration's global strategy against the three diseases. The initial authorization of the Leadership Act and subsequent appropriations have stipulated terms for USG contributions to the Global Fund, most notably that the cumulative USG contribution may not constitute more than 33% of total contributions to the Global Fund. Statutory provisions also require withholding funds if the Global Fund is found to have provided financial assistance to the governments of states that consistently support terrorism, if administrative expenses and salaries exceed certain benchmarks, or if the Global Fund fails to satisfy certain criteria regarding performance-based funding and support for in-country entities. Statutory provisions also allow PEPFAR to withhold a portion of the USG contribution to fund technical assistance to improve the implementation of the Global Fund grants.
The Global Fund is a public-private, non-profit foundation created in 2001 to attract and disburse funding to combat HIV/AIDS, tuberculosis, and malaria. The Global Fund is a demand-driven financing mechanism, not an implementing agency, and funds grant proposals generated by recipient countries. The Global Fund grant proposals are developed and overseen by "Country Coordinating Mechanisms" or equivalent groups comprised of representatives from government ministries, non-governmental organizations, the private sector, international partners and people living with the diseases. The Global Fund grant recipients can be public, private or international organizations. The Geneva-based Global Fund Secretariat authorizes disbursements of grant money on a quarterly basis, contingent upon grant performance, from the Global Fund's trustee account at the World Bank. Under the Global Fund model, disbursement of funds is contingent upon the grant recipient's ability to demonstrate results achieved to date.
The Global Fund Board solicits grant proposals on a periodic basis through individual grant "rounds" and a "rolling continuation channel" for high-performing grants. An independent panel of experts reviews the grant proposals on the basis of their technical merit and makes funding recommendations to the Board, which approves the final funding decisions. The Board's initial funding approval for a round-based grant provides an initial two years of funding. The Board makes a separate funding decision on the final three years ("Phase 2") of each grant, taking into account grant performance. The Global Fund Board has thus far approved eight rounds of grants, with grant commitments of $14.9 billion in 140 countries.
Under the Comprehensive Funding Policy, the Global Fund Board does not approve grant proposals unless it has funds available to cover the full amount approved. The Global Fund Secretariat currently projects it will have sufficient resources to cover the second phase of all current grant commitments (years 3-5 of grant proposals that demonstrate satisfactory performance) and the first phase (years 1-2) of all grants approved as part of Round Eight, contingent upon the identification of efficiency savings mandated by the Board at its 18th meeting in November 2008. The United States' maximum contribution in FY 2009 is $1 Billion but this ceiling is subject to a number of statutory and discretionary withholdings. The implementing mechanism is a USAID grant to the World Bank acting as trustee. During FY 2009, the USG will use a portion of our contribution to provide technical assistance to Global Fund grants that are experiencing implementation bottlenecks and other program management issues. The USG is authorized to use up to five percent of our overall contribution to the Global Fund for this purpose.
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