Global Fund Board announces country band assignments

Author:

David Garmaise

Article Type:

Article Number: 5

Band funding allocations revealed

ABSTRACT The Global Fund Board has assigned grant-eligible countries to four bands ahead of announcing individual allocations for 2014. Total band allocations have also been approved.

DECISION POINTS: GF/B31/DP08 and GF/B31/DP10

The Global Fund has approved $14.82 billion in indicative funding for grant-eligible countries assigned to each of the four bands for the next funding cycle, as well as the allocations for each band.

Composition of the bands

The four bands are depicted below:

Band 1 Lower income High burden	Band 3 Higher income High burden
Band 2 Lower income Low burden	Band 4 Higher income Low burden

Band assignments were based on calculated income and burden thresholds. Income thresholds topped out at a gross national income per capita of $2,000. Total disease burden is assessed at 0.26%

The index aggregates disease burden scores for HIV, TB and malaria as part of the income/burden formula to determine allocations to individual countries.

Of the 123 eligible countries, 39 are assigned to Band 1; 18 to Band 2; 11 to Band 3; and 55 to Band 4.

Funding allocations to country bands

A total of $14.82 billion in indicative funding will be available across the bands. It will be allocated as follows:

• $11.25 billion for the 39 countries in Band 1
• $915 million for the 18 countries in Band 2
• $1.53 billion for the 11 countries in Band 3
• $1.105 billion for the 55 countries in Band 4

An additional $950 million will be available in incentive funding to the countries in Bands 1-3.

These allocations will include both funds committed during the fourth replenishment conference held in December 2013 in Washington, DC as well as existing funds from the previous replenishment.

Table 1 provides details for each band.

Table 1: Indicative funding allocations to country bands

Band	Indicative funding allocation	% of the total
1	$11.250 billion	76.0%
2	$0.915 billion	6.2%
3	$1.530 billion	10.3%
4	$1.105 billion	7.5%
Total	$14.800 billion	100%

The Board fixed the allocation of indicative funding resources for Band 4 at 7%. Breakdowns for the other three bands were determined by aggregating notional funding allocations across each band. (Notional funding allocations are the amount of indicative funding for each country, which will be communicated to countries before the end of March. During the country dialogue and concept note development process, some adjustments will be made to the country allocations.)

The amount of available incentive funding is $950 million, 87% of which will be directed towards countries in Band 1.

Table 2 provides incentive funding details for each band.

Table 2: Incentive funding allocations to country bands

Band	Indicative funding allocation	% of the total
1	$826.5 million	87%
2	$47.5 million	5%
3	$76.0 million	8%
4	NIL	N/A
Total	$950.0 million	100%

Band 4 countries are not eligible for incentive funding.

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