[e-drug] Global Fund commits USD 616m

E-DRUG: Global Fund commits USD 616m
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[The first Global Fund grants have been announced. See
press release below. The project list is at
http://www.globalfundatm.org/files/Proposalslist_40.doc
General info at www.globalfundatm.org. WB]

GLOBAL FUND
To Fight AIDS, Tuberculosis and Malaria

PRESS RELEASE

GLOBAL FUND TO FIGHT AIDS, TUBERCULOSIS AND MALARIA ANNOUNCES FIRST GRANTS

- Commits Up to $616 Million Over Two Years for Prevention and Treatment -
- Calls for Additional Resources to Address World's Deadliest Epidemics -

The new Global Fund to Fight AIDS, Tuberculosis and Malaria today announced
its first round of grants to programs to prevent and treat the three
diseases in severely affected countries. The Fund awarded a total of US$378
million over two years to 40 programs in 31 countries, a significant
increase in international spending to combat the diseases.

The Board also agreed a fast-track process to approve an additional US$238
million for 18 proposals in 12 countries, plus three multi-country
proposals, provided certain conditions are met. This would bring the total
funding over two years to US$616 million. These programs add up to US$1.6
billion over five years. Funding after the second year will be approved
based on performance during the first two years.

The announcement came at the conclusion of the second meeting of the Fund's
Board, held from April 22-24 at the Mailman School of Public Health at
Columbia University in New York.

Officials described the initial grants as a successful start to the Global
Fund, an independent, public-private partnership working to increase global
resources to combat diseases that kill six million people each year.

"Less than three months after the Global Fund issued its first call for
proposals, it is directing funds where they are needed to help fight AIDS,
tuberculosis, and malaria," said Dr. Chrispus Kiyonga, chair of the Global
Fund's Board and Minister without Portfolio of the government of Uganda.
"The Global Fund's grants will provide critical support to effective
prevention and treatment programs around the world."

At the same time, Fund officials also noted that more resources are
urgently needed to fight the epidemics.

"UN Secretary-General Kofi Annan has called for US$7-10 billion each year
to combat HIV/AIDS alone," said Philippa Lawson of the Academy for
Educational Development (AED) and Global Fund Board member representing
people living with or affected by one of the three diseases. "The Global
Fund has raised more than $2 billion in less than a year. This a
successful start, but the Fund needs far more resources to fight AIDS, TB,
and malaria - millions of lives are at stake."

Strong Competition for Limited Resources

The approved grants were selected from more than 300 proposals submitted
for the first round of funding. In all, these proposals requested more than
US$5 billion from the Global Fund over five years.

All eligible proposals were thoroughly evaluated by the Global Fund's
Technical Review Panel, an independent group of 17 experts in prevention,
clinical care, health education, and international development. Final
decisions on grant awards were made by the Board.

"We received far more proposals than we are able to fund in this first
round, demonstrating how great the need is to address HIV/AIDS,
tuberculosis and malaria," said Dr. Anders Nordstr�m, Interim Executive
Director of the Global Fund. "We prioritized high-quality proposals that
were based on effective programs and lessons learned, and were developed by
partnerships of governments, community organizations, people living with
the diseases, and other groups."

"We also prioritized proposals that clearly demonstrated how new resources
from the Global Fund would fill funding gaps and achieve results," added
Dr. Nordstr�m.

The Global Fund plans to issue a second call for proposals later this year.
Officials noted that the Fund will continue to look for ways to make the
application process as accessible as possible to potential grantees.

"We have learned a great deal from the first round of funding," said
Philippa Lawson of AED. "Since the Fund is a new mechanism designed to
respond to a global crisis, it faces the challenge and the responsibility
to identify and specifically solicit proposals designed to fill gaps on
under-represented components - including antiretroviral treatment, and a
balanced portfolio of regions, diseases and treatment."

"The Board is committed to continually improving and streamlining the
application process and helping potential grantees to submit high-quality
proposals," added Ms. Lawson.

Grants Will Support Effective Prevention and Treatment Programs Worldwide

The grants announced today will support a wide range of prevention and
treatment programs for the three diseases. Most of the approved grants
include both prevention and treatment components. Of the 28 countries that
will receive funds to fight HIV/AIDS, 21 have grants that specifically
include funding to purchase antiretroviral treatments for people living
with HIV/AIDS.

"The first round of grants reflects the Global Fund's strong commitment to
a comprehensive approach to fighting HIV/AIDS, TB, and malaria that
balances prevention and treatment," Dr. Kiyonga said.

Dr. Kiyonga also noted that the Fund and its partners have strong
monitoring and evaluation procedures in place to ensure that grant funds
will be used properly and have a measurable impact.

"The Global Fund disburses grants with a minimum of red tape, but with
safeguards to ensure that funds are used wisely and achieve results," said
Dr. Kiyonga. "We will work closely with grantees to monitor program
implementation, financial management, and health outcomes."

The 40 grants awarded today will support HIV/AIDS, TB, and malaria programs
in all regions of the world, as follows: Africa 52%, Americas 13%, Eastern
Mediterranean 1%, Eastern Europe and Central Asia 8%, Southeast Asia 12%,
and Western Pacific 14%. About 60% of the funds granted in this round goes
to projects working in HIV/AIDS, and an additional 15% goes to programs
fighting HIV/AIDS combined with one or both of the other diseases. Ten
percent goes to programs working to fight malaria, and 16% to programs
focusing on tuberculosis.

Far More Resources Are Needed

Fund officials said today that the initial round of grants is only a first
step in addressing the AIDS, TB and malaria epidemics, and that far more
resources are needed to mount sufficient, effective programs of treatment
and prevention for the three diseases.

"This funding is a significant advance in the global fight against AIDS, TB
and malaria, but it is only a first step," said Dr. Anne Peterson,
Assistant Administrator for Global Health at the US Agency for
International Development (USAID). "More funding is needed from
governments, businesses, foundations, and other donors if we are to mount
an effective and sustained response to these epidemics."

To date, the Fund has raised approximately US$2.08 billion from
industrialized and developing country governments, businesses, foundations,
and individuals. The Fund supplements, but does not replace, existing
national, bilateral, and multilateral donor programs.

Richard Feachem Appointed Executive Director

Fund officials also announced the appointment of Professor Richard Feachem
as Executive Director of the Global Fund.

Dr. Feachem, a British national, is currently Founding Director of the
Institute for Global Health, and Professor of International Health at the
University of California, San Francisco and Berkeley. Prior to this
position he was Director for Health, Nutrition and Population at the World
Bank. From 1989 until 1995, Dr. Feachem was Dean of the London School of
Hygiene and Tropical Medicine in London. He holds a Doctor of Science in
Medicine and a PhD in Environmental Health.

"Professor Feachem has outstanding experience in the field of international
health, and has worked with both the public and private sectors," said
Rajat Gupta, Managing Director of McKinsey & Company and Global Fund Board
member. "We are very pleased about his selection as the Global Fund's
Executive Director."

"It is a great honor for me to have the opportunity to work for the Global
Fund," said Dr. Feachem. "The poverty and suffering caused by AIDS,
tuberculosis and malaria are immense. The Fund is positioned to make large
investments in controlling these terrible diseases and improving the lives
of millions of families throughout the world. I look forward to
contributing to the Fund's success, to leading the Secretariat, and to
working with the Fund's many partners and supporters. Together we can make
a difference."

Dr. Anders Nordstr�m, Head of the Health Division of the Swedish Agency for
Development Cooperation (SIDA), has been serving as the Global Fund's
Interim Executive Director.

About the Global Fund

AIDS, TB and malaria have a devastating global impact, causing nearly six
million deaths a year - 10% of the world's total. The Global Fund to Fight
AIDS, Tuberculosis and Malaria is an independent public-private partnership
working to increase funding to fight the three diseases, and direct these
funds rapidly to effective prevention and treatment programs in the
countries with greatest need. The Fund's Board includes representatives of
all parties that have a stake in fighting the three diseases: donor and
recipient country governments, international agencies, NGOs, the private
sector, and people affected by the three diseases.

Contacts:

Melanie Zipperer at +41 79 477 1722 or Leyla Alyanak at +41 79 308 9859.
Further information on the Global Fund can be found at
www.globalfundatm.org

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