Several Aspects of the NFM Have Yet to Be Finalised
David GarmaiseArticle Type:
Article Number: 6
ABSTRACT Decisions still have to be made on several facets of the new funding model. This article provides details.
With only six months to go before the expected full rollout of the new funding model (NFM), several aspects of the model have not yet been finalised. Decisions still have to be made on the following:
- the incentive funding stream, including how the Global Fund will determine how much money will be set aside for incentive funding, and how the funding will be awarded;
- country bands, including the composition of the bands, how the funds will be allocated across the bands, and what the methodology will be for determining country indicative funding ceilings within Band 4;
- the global disease split for the indicative funding;
- precisely how the allocation formula will work;
- how unfunded quality demand will be awarded;
- how regional proposals will be funded; and
- how special initiatives will be funded.
In addition, the Global Fund is expected to update the Eligibility, Counterpart Financing and Prioritisation Policy so that it reflects the NFM.
Most of the above decisions will be made by the Strategy, Investment and Impact Committee, but some of them will need to go to the full Board.
In addition, the Global Fund Secretariat will need to decide what criteria to use for the full rollout when it makes adjustments to indicative funding ceilings based on qualitative factors. And, of course, there will be changes to concept notes templates and guidelines, and to the way the country dialogue works, as more lessons are learned from the experience of the transition phase.
For an explanation of how the NFM allocation methodology is expected to work, based on what is already known about it, see GFO article.