Update on the Modification of the Global Fund Grant Renewals Policy and Process

Published: December 1, 2011

At its 25th Board meeting in Accra, Ghana, the Global Fund Board adopted measures to ensure strategic investments in light of current resource constraints. With respect to grant renewals, these measures include a (1) adapted grant renewals policies and processes; and (2) a revised application and approval process for all grant renewals. These measures will apply to all renewals (Phase 2s, RCC Phase2s and Periodic Reviews) that are due to be reviewed starting in January 2012.

The Board decided that eligibility criteria will be applied to grant renewal applications.  To ensure that a majority of Global Fund investments continue to benefit lower-income countries, the Board further decided that the total funding approved for grant renewals for Low Income Countries (LICs) will be no less than 55% of any annual funding window.  The Secretariat is preparing specific information to address the different scenarios this creates for countries with renewals.  This information, tailored to specific country scenario, will be shared with all affected countries on 12 December 2011.

The Secretariat will continue to provide additional information and guidance on the modification of the renewals process as they become available.

Key Implications on Renewals 

    Revision of grant  renewals policies:
        Starting 1 January 20121, new eligibility criteria based on income level classification (GNI per capita) and latest disease burden classification from the World Health Organization (WHO) will be applied to renewals as follows:

            Upper Middle Income Countries (UMICs) belonging to the G20 and having less than an extreme disease burden will no longer be eligible for renewals; G20 UMICs that will no longer be eligible for renewals that were scheduled for review during 2012 will qualify to receive one year of transition funding, in addition to other funding it remains eligible to receive, with a ceiling of one-third of the total reduction resulting from the application of this policy;

            All other UMICs will still be eligible for renewals, subject to additional criteria described below;

            The one-year grace period for changes in a country’s income classification is no longer available.

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