1 Demystifying the New Funding Model GIZ Regional Conference Africa, MENA and LAC 6-9 May 2014,...
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Transcript of 1 Demystifying the New Funding Model GIZ Regional Conference Africa, MENA and LAC 6-9 May 2014,...
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• 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
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
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Disease burden
Income level
External financing
Minimum required level
Grant performance
Increasing infection rate
Absorptive capacity
Risk
Impact
= Country allocation
Allocation formula Qualitative factors
15% of which accessible based onWillingness-to-Pay
Overview of how funds are allocated to countries
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Counterpart Financing
Mandatory minimum requirements of counterpart financing
• Minimum threshold contribution (LI-5%, Lower LMI-20%, Upper LMI-40%, UMI-60%)
• Increasing government contribution to disease programs and health sector
• Reliable disease and health expenditure data
‘Willingness-to-Pay’ commitment to further incentivize
• Additional co-investments by government in disease programs in accordance with ability to pay
• Realization of planned government commitments
• 15% of allocation is contingent upon meeting WTP commitments
Core Global Fund principles: Sustainability, Additionality, Country Ownership
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Country band composition
Allocation methodology2
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Disease Burden
Inco
me
Lower Higher
Low
er
Band 1
Band 3Band 4
Band 2
GNI per capita US$ 2,000
Lower-income, higher-burden
39 countries
Higher-income, higher-burden
11 countries
Lower-income, lower-burden
18 countries
Higher-income, lower-burden
55 countries
0.26 composite
score
US$ 1.1bn US$ 1.5bn
US$ 0.9 bn US$ 11.3 bn
US$ 83 million of incentive funding
available for Band 3
US$ 825 million of incentive funding
available for Band 1
US$ 42 million of incentive funding
available for Band 2
Band 4 countries have incentive
funding calculated into their allocations
Hig
her
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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
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Types of funding
Country allocation
• 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
Incentive funding*
• 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
Unfunded quality demand
* Regional applicants, significantly over-allocated disease components and Band 4 countries are not eligible for incentive funding.
• 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
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New funding model cycle
2nd
GAC
Concept Note Grant Making
Board
TRP
GAC
Ongoing Country Dialogue
National Strategic Plan/
Investment Case
Grant Implementation
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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
Concept Note Grant-Making
Ongoing Country Dialogue
National Strategic Plandetermined by
country
Grant Implementation
3 years
Govt-led CCM-led PR-led CCM/PR-led
Country owned process
Country Dialogue
Country dialogue is a country-owned, on-going process
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Who plays a role in country dialogue?
Country dialogue
Technical partners
Civil society / key populations
Private sector
Country government
Other donors
Global Fund
These actors meet in the CCM, however, the dialogue should expand beyond the CCM
Academia
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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
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Technical Assistance framework under the new funding model
2nd
GAC
Concept Note2-3 months
Grant Making3+months
Board
TRP
GAC
CCM strengtheningHSS strengthening
CS/KAPs strengthening and engagementOperational support (existing and new programs)
National Strategic Plan/
Investment Case
Grant Implementation
3 years
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
Partners mapping
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
Addressing implementation bottlenecks
Long-term capacity development•M&E•Financial management•PSM•PR/SR/SSR management•Governance
Disease-specific /public health technical support
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What is the Technical Review Panel looking for?
Soundness of approach
Feasibility
Potential for sustainable outcomes
Value for money
Criteria for reviewing funding requests
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Resources available http://www.theglobalfund.org/en/fundingmodel/
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New funding model Resource Book
Frequently Asked Questions about the new funding model
Online learning materials on key topics (e-learning modules)
Concept note templates and guidelines
Information notes
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ResourceResource
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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
Page 16
- Support to development of quality NSP and Investment Cases, gap analyis, etc.
- Participation in/support to inclusive country dialogue/multistake-holder 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 recommendations
- 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)
ENTRY POINTS: NFM PROCESSES
Support to CCM Processes (to improve coordination, communication, oversight and risk management)