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GLOBAL FUND TERMINATES TWO GRANTS TO UGANDA
GFO Issue 73

GLOBAL FUND TERMINATES TWO GRANTS TO UGANDA

Author:

Bernard Rivers

Article Type:
News

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.

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