Global Fund: Demystifying the New Funding Model

Report
Demystifying the
New Funding Model
GIZ Regional Conference
Africa, MENA and LAC
6-9 May 2014, Accra
1
Principles of the new funding model
The new funding model has been designed to bring the Global Fund Strategy of
‘Investing for Impact’ to life. The new model will improve the way the Global Fund
assesses, approves, disburses, and monitors grants
Principles
of the new
funding model
•
Bigger impact: focus on countries with the highest disease burden and
lowest ability to pay, while keeping the portfolio global
•
Predictable funding: process and financing levels become more
predictable, with higher success rate of applications
•
Ambitious vision: ability to elicit full expressions of demand and reward
ambition
•
Flexible timing: in line with country schedules, context, and priorities
•
More streamlined: for both implementers and the Global Fund
2
Overview of how funds are allocated to countries
Allocation formula
Qualitative factors
Disease burden
Grant performance
Impact
Income level
Increasing infection
rate
External financing
Absorptive capacity
Minimum required
level
=
Country allocation
15% of which
accessible based on
Willingness-to-Pay
Risk
3
Counterpart Financing
Core Global Fund principles:
Sustainability, Additionality, Country Ownership
Mandatory minimum requirements
of counterpart financing
‘Willingness-to-Pay’ commitment
to further incentivize
• Minimum threshold contribution (LI5%, Lower LMI-20%, Upper LMI40%, UMI-60%)
• Additional co-investments by
government in disease programs
in accordance with ability to pay
• Increasing government contribution
to disease programs and health
sector
• Realization of planned government
commitments
• Reliable disease and health
expenditure data
• 15% of allocation is contingent
upon meeting WTP
commitments
4
Allocation methodology
Country band composition
Band 4
Band 3
Higher-income,
lower-burden
Higher-income,
higher-burden
55 countries
11 countries
US$ 1.1bn
US$ 1.5bn
Income
Band 4 countries
have incentive
funding calculated
into their allocations
Higher
0.26
composite
score
US$ 42 million of
incentive funding
available for Band 2
US$ 83 million of
incentive funding
available for Band 3
GNI per capita US$ 2,000
Band 2
Band 1
Lower-income,
lower-burden
Lower-income,
higher-burden
18 countries
39 countries
US$ 0.9 bn
US$ 11.3 bn
Lower
2
Lower
Disease Burden
US$ 825 million of
incentive funding
available for Band 1
Higher
55
Total funding from Global Fund is increasing
• The total funds for allocation are 20% higher than what we have disbursed in the
past.
- The total funds to be allocated to countries, available as of January 1, 2014 (including
existing funds): US$ 14.8 billion
- Average implied funding level: US$ 3.7 billion per year
- This compares favorably vs. the average annual disbursement rates of US$ 3.2 billion.
• In addition, the Global Fund will allocate:
- US$ 950 million of incentive funding which will be awarded to ambitious programs that
deliver impact in country
- US$ 200 million for new regional grants and US$ 91 million to finish existing regional
grants
This represents US$ 16 billion for countries
6
Types of funding
Country
allocation
Incentive
funding*
Unfunded
quality demand
• Each eligible country receives an allocation to support its disease programs for the
allocation period (communicated in March 2014)
• The amount is determined using an allocation methodology based on disease burden
and income levels, and is adjusted for qualitative factors
• A separate reserve of funding designed to reward high impact, well-performing
programs and encourage ambitious requests
• It is made available, on a competitive basis, to applicants in Country Bands 1, 2, 3
• Awarding of incentive funding will be based on the TRP recommendation. The GAC will
decide on incentive funding, which will be included in the upper-ceiling of the grant
• Any funding requested through a concept note which is considered strategically
focused and technically sound by the TRP, but cannot be funded through available
funding
• The demand is registered for possible funding by the Global Fund or other donors
when, and if, any new resources become available
* Regional applicants, significantly over-allocated disease components and Band 4 countries are not
eligible for incentive funding.
7
New funding model cycle
Ongoing Country Dialogue
2nd
GAC
TRP
National
Strategic Plan/
Investment Case
Concept Note
Grant
Implementation
Grant Making
GAC
Board
8
Country dialogue is a country-owned, on-going process
Country
Dialogue
The term is used by the Global Fund to refer to the ongoing
discussion that occurs at country level to prioritize how to fight the
three diseases and strengthen health and community systems
Country owned process
Ongoing Country Dialogue
Govt-led
National
Strategic Plan
determined by
country
CCM-led
Concept Note
PR-led
CCM/PR-led
Grant-Making
Grant
Implementation
3 years
9
Who plays a role in country dialogue?
Academia
Country
government
Other donors
Global Fund
Private sector
Country dialogue
Technical
partners
Civil society /
key populations
These actors meet in the CCM,
however, the dialogue should expand beyond the CCM
10
How do we engage with communities, including key
populations?
Encourage assembling of communities in advance of national meetings
• Ensure they can raise their concerns on human rights, gender, access and other
issues in a safe space without repercussions
• Ensure confidentiality for all participants
• Convene different groups of women, youth, key populations etc. separately and
collectively as needed. Collective assembling can help create coalitions, separate
meetings help in-depth discussions on specific needs and issues
Facilitate meaningful participation e.g., national / regional meetings held outside
the capital and in the local language
Ensure communities understand what support they can expect from The Global Fund
to address human rights, CSS, gender inequalities
Ensure concerns raised by communities get raised and addressed during the
country dialogue through lead representatives
11
Technical Assistance framework under the new funding model
CCM strengthening
HSS strengthening
CS/KAPs strengthening and engagement
Operational support (existing and new programs)
2nd
GAC
TRP
National
Strategic Plan/
Investment Case
Situation analysis/epidemic
assessment
• Epidemiological analysis
• Program gap
• Financial gap
• Capacity gap
Strategic plans /Investment
case development, reviews and
costing
Health Sector strategy
Policy advice/enabling
environment
Concept Note
2-3 months
Grant Making
3+months
Board
GAC
Support to develop CN and all
documentation
• Use of modular tool
• Program design
• Selection of interventions
• Indicative/above indicative
budget
CN review based on early
feedback from TRP
Risk and capacity assessment
response and implementation
capacity
• Financial management
• M&E
• PSM
• PR/SR/SSR management
• Governance
Start-up TA
• GF systems/tools
• Org development
Disease-specific/public health
technical support
Grant
Implementation
3 years
Addressing implementation
bottlenecks
Long-term capacity
development
• M&E
• Financial management
• PSM
• PR/SR/SSR management
• Governance
Disease-specific /public health
technical support
Partners mapping
12
What is the Technical Review Panel looking for?
Soundness of approach
Value for money
Feasibility
Criteria for
reviewing
funding
requests
Potential for sustainable outcomes
13
Resources available
http://www.theglobalfund.org/en/fundingmodel/
Resource
1
New funding model Resource Book
2
Frequently Asked Questions about the new funding model
3
Online learning materials on key topics (e-learning modules)
4
Concept note templates and guidelines
5
Information notes
14
Useful links
Further information about the New Funding Model can be found on the Global Fund website
The following documents are available to support the countries during the application process:
Overview of the Allocation Methodology (2014-2016)
Resource Book for Applicants
New Funding Model Brochure
Frequently Asked Questions on the New Funding Model
Frequently Asked Questions – Allocation Amounts
Ten Frequently Asked Questions on the Global Fund Board Decision of a Single Concept Note
Submission for Joint HIV and TB Programming
Additional Applicant Support
15
ENTRY POINTS: NFM PROCESSES
- Support to
development of quality
NSP and Investment
Cases, gap analyis,
etc.
- Participation in/support
to inclusive country
dialogue/multistakeholder processes
(including SWAP and
Donor Groups)
- Support to
Concept Note
develop-ment
based on
robust national
strategies;
- Integration in
national
systems
- Dialogue with
BMZ/ PROFILE
for GAC inputs
(based on GAC
and TRP
documents and
specific issues
discussed at
country level)
- Creation of
robust
implementation
frameworks
- Dialogue with
BMZ/
PROFILE for
GAC inputs
and
comments on
funding
recommendat
ions
- Capacity development for PRs,
SRs on financial management,
procurement, M&E, etc.
- Support to risk management
- TC measures complementary to
GF grants
- Support to local organizations in
their role as implementer (CS
and public organisations)
Support to CCM Processes (to improve coordination, communication, oversight and risk management)
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