WASHINGTON – The World Bank and the Global Fund have signed a co-financing framework agreement to accelerate efforts by countries to end HIV, tuberculosis and malaria and build sustainable systems for health.
The framework agreement outlines a new approach for joint financing of investment-type operations between the two organizations, as well as results-based financing.
In recent years, the Global Fund and the World Bank have signed multiple innovative finance agreements, such as a loan buy-down for a program to fight tuberculosis in India, a performance-based funding project in the Democratic Republic of Congo and a Multi-Donor Trust Fund for Indonesia and Sri Lanka. The framework agreement is expected to reduce transaction costs and lays the foundation for a deeper partnership with the aim of increasing impact.
“Partnership is in the Global Fund’s DNA, and our work with partners such as the World Bank will accelerate the fight to end the epidemics,” said Peter Sands, Executive Director of the Global Fund. “Innovative financing mechanisms can play a significant role in improving the effectiveness of our investments and in pursuing new financial opportunities to increase impact.”
“Improving access to health services reduces financial hardship for families, improves their health outcomes and builds the human capital of societies,” said Annette Dixon, Vice President for Human Development at the World Bank. “Working in partnership and unlocking new models for health financing is key to better serve our client countries and ensuring affordable, quality health care for all.”
The first transaction anticipated to be governed by the framework agreement is a proposed Global Fund/World Bank investment in Laos to work towards universal health care, with payments to the country tied to specific results.
Innovative financing mechanisms complement the funding of the Global Fund and the World Bank and amplify domestic health financing. The Global Fund and the World Bank are constantly exploring ways of increasing domestic financing and program sustainability.
Last week, donors at the Global Fund's Sixth Replenishment Conference pledged US$14.02 billion for the next three years – the largest amount ever raised for a multilateral health organization, and the largest amount by the Global Fund.
The Global Fund is a partnership designed to accelerate the end of AIDS, tuberculosis and malaria as epidemics. As an international organization, the Global Fund mobilizes and invests more than US$4 billion a year to support programs run by local experts in more than 100 countries. In partnership with governments, civil society, technical agencies, the private sector and people affected by the diseases, we are challenging barriers and embracing innovation.
The World Bank Group is one of the world's largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world.