GLOBAL FUND TERMINATES TWO GRANTS TO UGANDA
Author:
Bernard Rivers
Article Type:Article Number: 2
ABSTRACT The Global Fund has permanently terminated two grants to Uganda because of unsatisfactory performance. Uganda will lose about $16 million as a result of this action. This is the second time that the Fund has taken action regarding these grants. In 2005, the Fund temporarily suspended all of Uganda's grants while problems with financial management were investigated.
The Global Fund has permanently terminated two grants to Uganda because of unsatisfactory performance. The grants were a Round 2 malaria grant and a Round 2 TB grant. Uganda will lose about $16 million as a result of this action.
This is the second time that the Fund has taken action regarding these grants. In 2005, the Fund temporarily suspended all of Uganda’s grants while problems with financial management were investigated.
The recent grant terminations bring to seven the total number of grants worldwide that the Fund has deemed No Go after both the Secretariat and the Board were unwilling to approve an extension from Phase 1 (the first two years of the grant) to Phase 2 (the final three years of the grant).
The seven grants, listed in the following table, involve a total of $125 million in money that will not be disbursed by the Fund and can thus be applied to other grants.
Table: Grants Terminated After Phase 1 as a Result of a No Go Board Decision re Phase 2
| Board No Go decision | Country | Round | Component | Maximum
5-year amount |
Actually disbursed | Foregone income |
| Feb. 2005 | Senegal | 1 | Malaria | $7.1 m. | $1.5 m. | $5.6 m. |
| Dec. 2005 | South Africa | 1 | HIV/TB | $68.0 m. | $17.9 m. | $50.1 m. |
| Apr. 2006 | Nigeria | 1 | HIV/AIDS | $27.4 m. | $6.8 m. | $20.7 m. |
| Apr. 2006 | Nigeria | 1 | HIV/AIDS | $41.8 m. | $12.9 m. | $28.8 m. |
| Apr. 2006 | Pakistan | 2 | Malaria | $7.7 m. | $3.5 m. | $4.2 m. |
| Feb. 2007 | Uganda | 2 | Malaria | $35.8 m. | $21.1 m. | $14.7 m. |
| Feb. 2007 | Uganda | 2 | TB | $5.7 m. | $4.5 m. | $1.1 m. |
| TOTAL: | $193.6 m. | $68.3 m. | $125.3 m. |
Note: The fact that these grants have been terminated is not currently apparent at the Fund’s website, though it is understood that this point will soon be addressed.
