Global Fund Cancels Latest Financing Round, Hints at New Funding Model for 2014

A balloon with text that says, "Fund the Fight Against AIDS and TB." Photo by: Treatment Action Campaign / CC BY SA

The Global Fund to Fight AIDS, Tuberculosis and Malaria’s board has cancelled the organization’s 11th funding round due to lack of sufficient resources.

The organization is facing a $1.3 billion funding shortfall after raising only $11.7 billion at its latest replenishment conference in New York in October 2010. The fund has estimated it would require a minimum of $13 billion to continue current projects through 2013.

Round 11 will be converted into a ”new funding opportunity“ under a new model that would start accepting proposals starting early 2014, Global Fund board members decided at their Nov. 21-22 meeting in Accra, Ghana. The board also agreed Round 11 proposals “that are updated as appropriate may form the basis for an application for the next funding opportunity.”

With the funding round cancelled, the Global Fund would instead establish a “transitional funding mechanism” to support countries facing a disruption of HIV, tuberculosis and malaria programs before 2014.

The mechanism would allow countries to apply for funding to cover immediate needs of their ongoing programs, as noted by international medical aid group Medecins Sans Frontieres.

“For HIV, this funding can cover medicines for people already on treatment, but does not provide for scale-up of HIV treatment. Funding will also be restricted for treatment of drug-resistant forms of [tuberculosis],” the group said in a statement outlining its response to the Global Fund board’s decision, which it described as “unprecedented.”

MSF called on donors and the Global Fund to immediately raise resources needed to support the alternative funding mechanisms the organization is offering and for the planned new funding model.

At their meeting, the board also approved a five-year strategy and a Consolidated Transformation Plan that refocuses “grant management in high-risk countries, reform the way the Global Fund approves grants by moving towards a more interactive process with applicants and partners, and strengthen the board’s governance processes.”

The cancellation of the Global Fund’s 11th funding round comes amid calls for sustained support for global efforts to fight AIDS, particularly from U.S. Secretary of State Hillary Clinton, who recently outlined a vision for an AIDS-free generation.

Read more development aid news, and subscribe to The Development Newswire to receive top international development headlines from the world’s leading donors, news sources and opinion leaders — emailed to you FREE every business day.

About the author

  • Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.