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 You are in: Under Secretary for Public Diplomacy and Public Affairs > Bureau of Public Affairs > Bureau of Public Affairs: Press Relations Office > Press Releases (Other) > 2002 > June
Fact Sheet
Office of the Spokesman
Washington, DC
June 21, 2002

Global Fund to fight AIDS, Tuberculosis and Malaria

Brief History of the Fund: The concept of an international fund to fight HIV/AIDS, tuberculosis, and malaria was first proposed at the July 2000 G-8 Summit in Okinawa. On May 11, 2001, President Bush announced a U.S. pledge of $200 million to support such a global fund, the first pledge by a government. In June 2001, at the urging of United Nations Secretary-General Annan and many national leaders, the UN General Assembly Special Session on HIV/AIDS unanimously endorsed the concept of a Global Fund, and by the time of their meeting in Genoa a month later, G-8 leaders had pledged $1.3 billion in support.

Establishing the Fund: In the course of three meetings from October to December 2001, a Transitional Working Group, consisting of more than 40 representatives of developing and donor countries, non-governmental organizations, the private sector, and the UN, established the basic structure for the Fund, including its legal status, management structure, financial and program accountability framework, and general eligibility criteria. Utilizing the entrepreneurial spirit of non-governmental organizations, community-based organizations, foundations, and the private sector will be critical to the Fundís success. In January 2002, the Fund was formed as a charitable Swiss foundation, with headquarters in Geneva. The Board held its first meeting in Geneva in January and issued the first call for proposals.

Purpose: The Fund is intended "to attract, manage, and disburse additional resources through a new public-private partnership that will make a sustainable and significant contribution to the reduction of infections, illness and death, thereby mitigating the impact caused by HIV/AIDS, tuberculosis, and malaria in countries in need, and contributing to poverty reduction as part of the development goals contained in the Millennium Declarations." The Fund is intended to complement bilateral and multilateral assistance programs already underway, not be duplicative or replace existing funding.

Resources: As of June 2002, governments, corporations, foundations, and individuals had pledged approximately $2 billion to the Global Fund. Many of the pledges are multi-year; $700-$800 million is available for the calendar year 2002. The United States has pledged $500 million to the Global Fund; $300 million of that is available in calendar year 2002. The US is the largest contributor and the only one to have made a second pledge.

Governance: The Global Fund is an independent legal entity, formed under Swiss Law as a charitable foundation. The Fundís Board of Directors acts as its ultimate decision making body. The 23-member Board is composed of both voting and non-voting members. Its 18 voting members are composed of two groups: nine donors, including seven governments, a foundation representative, and a representative of the for-profit private sector, and nine recipients, including seven governments and two non-governmental organizations, one from the developing world and one from the developed world. The five non-voting members include representatives from the World Health Organization, UNAIDS, the World Bank, a representative of people living with the diseases, and a Swiss citizen, as required by Swiss law. Governance procedures will evolve, and the goal is to have a flexible and innovative management structure. The Board has contemplated convening a "Partnership Forum" every two years, which would be a gathering of stakeholders to consider overall Fund policy. The Forum would be advisory in nature and would not have any formal decision-making role in the Fund.

A Secretariat, headed by an Executive Director, manages the Fund on a day-to-day basis. A Technical Review Panel (TRP) is charged with reviewing all proposals to ensure that they are scientifically and technically sound. The Panel is composed of an independent group of 17 experts in the three diseases, and in the fields of prevention, clinical care, health education, and health economics.

Grants: In April 2002, the Fund approved its first round of grants, funding 40 programs in 31 countries at a total cost of $378 million over two years. In addition, the Board granted conditional approval to an additional 18 proposals from 12 countries in the amount of $238 million over two years, requiring that they be further modified prior to final approval. The Board stipulated that no funds for any projects would be disbursed until satisfactory financial, monitoring, and evaluation controls have been agreed upon for each program.

Proposals are submitted through an inclusive, broad-based partnership in each country, referred to as a Country Coordination Mechanism (CCM), which brings together national and local governments, NGOs, and the private sector. In countries where a CCM either does not exist, or does not function adequately due to unusual circumstances (such as conflict, natural disaster, or questions of government legitimacy), NGOs can submit proposals directly to the Fund.

All proposals must be technically and developmentally sound, must demonstrate that added resources will bring results, and must meet high programmatic and financial accountability standards. The Technical Review Panel reviews all proposals and makes funding recommendations to the Board. The Board makes all final decisions on grant awards. Priority for funding is given to proposals from countries and regions with the greatest need, including the highest burden of disease and poverty, and those at high risk for disease emergence.

Web site: URL: http://www.globalfundatm.org

Released on June 21, 2002

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