Innovative Financing for TB The Global Fund

1
Innovative Financing for TBThe Global Fund

• Dr Louise Dann
• 3rd Stop TB Partners Forum, Rio de Janeiro
• 24 March 2009

2
Distribution of Global Fund financing by Disease
Component Rounds 1-8 (December 2008)
2.1 billion for TB
100 US 15 billion Percentage of total funds
approved by the Global Fund Board, including
Phase 2 Rolling Continuation Channel
OP/011208/3
3
Tuberculosis Grant Coverage - 8 Rounds of
proposals
110 countries Lifetime value US 3.1 billion
Approved US 2.1 billion Committed US 1.5
billion Disbursed US 1.1 billion
BG/281108/9
4
New instruments for AIDS financing
5
How ( RED ) Works

• Established brands pay a licensing fee to (RED)
  and agree to marketing requirements
• RED partner brands develop and market unique RED
  products to consumers
• A portion of profits on RED products go to Global
  Fund-financed AIDS programs in Africa (e.g. 1 of
  spending on the American Express RED card, 50 of
  profit on Gap RED apparel)

6
The Debt2Health Mechanism
Creditor
Beneficiary
Debt cancellation
Counterpart Payment(s)
Global Fund
Funding of grants based on Performance based
funding system
7
Global Fund and UNITAIDCollaborations for TB
8
Existing UNITAID Global Fund TB collaborations

• MDR-TB Scale-up
• 13.7 million
• UNITAID support
• procurement of additional
• MDR-TB medicines to
• scale-up GF grants.
• UNITAID funding is
• disbursed direct from UNITAID to GDF

• Round 6 MDR-TB
• 10.3 million
• UNITAID targeted
• support for MDR-TB
• medicine procurement
• within Round 6 grants
• UNITAID funding is disbursed from GF to grantees
  who purchase MDR-TB drugs from GDF

9
New and improved financing for TB

• Two areas of focus for innovative financing
• New financing to increase the number of Global
  Fund TB grants
• New ways to enhance the fiscal efficiency within
  Global Fund TB grants

10
Future UNITAIDGF Collaborations for TB

• Global Fund and UNITAID agreed a Roadmap Areas
  of mutual benefit and models for future
  collaborationfor HIV/AIDS, TB and malaria
• New TB collaborations should address both areas
  increasing funding for TB grants overall and the
  efficient use of funds within TB grants
• Direct payment model
• Direct payment to GDF for all Global Fund MDR-TB
  procurement within a funding Round/RCC.

11
Benefits of direct payment for TB procurement

• Simplify cash flow processes and reduce financial
  transaction costs of the existing pooled
  procurement model.
• Strengthen GDF market position and facilitate
  cost containment (possibly price reduction) of
  MDR-TB treatment.
• Reduce the time from grant approval to delivery
  of drugs and diagnostics in-country.
• Scale-up access to treatment to treat additional
  people in technically approved new TB programs

12
Future recommendations for financing for TB

• Greater focus on Diagnosis
• Accurate and efficient diagnosis is the first
  step towards an effective treatment for TB and
  MDR-TB patients
• Diagnosis is critical for surveillance robust
  prevalence data strengthens funding proposals
• Better understanding of the diagnostics market so
  countries can make informed and cost-effective
  decisions for diagnosis
• Pooled procurement of diagnostic tools, to reduce
  prices of products, encourage market growth.

13
Thank you