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Overview of the Global Fund and Role of the Private Sector

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October 12, 2010

Donors

Principal Non-government donors include:

Government donors include:- G8 nations- European

Commission- Over 30

additional donor and recipient countries

Global Fund to Fight AIDS, TB and Malaria: $19.3 billion contributed to date, representing the largest global investment in health.

Innovative Finance:

Debt2Health

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Private Sector and the Global Fund

The Private Sector can be involved with the Global FundIn 4 ways: • Contributor to GF governance, through PSD or CCM, and as a

public advocate• Implementer of GF grants (through co-investment, technical

assistance, grant recipient) • Contributor of financial and in-kind resources• Commercial provider of goods and services

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Private Sector and Good Governance

Participation on CCMs:• Around 10 CCMs are currently chaired by private sector• Most notably, Standard Chartered Bank chaired CCM in the Gambia. SCB

utilized its core competencies (financial expertise and management skills) to improve oversight of GF grants

• Chevron actively involved in Angola CCM• Goal: More engagement from the private sector within the CCM - The

PSD will work closely with the Secretariat to ensure active participation

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The Private Sector Delegation • GBC, as PSD Focal Point, manages the communication between the delegation and the Fund

Secretariat and Board

• Provides a platform for the private sector to provide its input and voice to the Global Fund Board on policies, procedures, challenges, etc

• Comprises companies that are willing to invest and dedicate significant support, time, resources, and expertise to providing guidance/direction to the Global Fund (via various taskforces and working groups)

• Encompasses the participation of 35 companies and partners from across various sectors. Advisory Group is meant to be kept at small size, but remains open to accepting a few new members.

• PSD is currently represented on 4 Global Fund Committees: Portfolio and Implementation Committee; Policy and Strategy Committee; Ad Hoc Market Dynamics and Commodities Committee; & Affordable Medicines Facility-malaria Ad Hoc Committee

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Private Sector Delegation: Composition and Structure

PSD Advisory Group: 34 members• Appoint board members• Counsel on policy• Participate in taskforces, and board

meetings

PSD NETWORK: +/-100 members = LFAS and Business Coalitions• Invited to periodic consultations• Ad Hoc Counsel on Policy

PSD Broad Constituency• Kept abreast through website• Informed of major developments• Selectively invited to major events

GBC: PSD Focal Point

Private Sector Delegation is one of 20 Delegations to the GF Board. PSD represented on GF through Brian Brink-Board Member, and Rick Wilkins, Alternate Board Member

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Private Sector Delegation Advisory Group members • Abt Associates• Access Bank plc• Anglo American plc• APCO Worldwide Inc. • Aspen Pharmacare• AstraZeneca• Bayer AG• BD (Becton, Dickinson and

Company)• BHP Billiton• Booz & Company• Bristol-Myers Squibb• Chevron Corporation• Exxon Mobil Corporation

• GlaxoSmithKline (GSK)• Global Business Coalition• Heineken N.V.• Johnson & Johnson• McKinsey & Company• Merck & Co., Inc.• bioMérieux• Mylan• Novartis• Orasure Technologies• Pfizer Inc• Premier Medical Corporation• Product (RED)• SABMiller

• Sanofi-Aventis• Standard Bank• Standard Chartered Bank• Sumitomo Chemical Co• Trinity Biotech Plc• Unilever• Vestergaard Frandsen• World Economic Forum

Private Sector as Implementer of Global Fund grants

• As Principal Recipient (Philipinas Shell Foundation, AngloGold Ashanti) •As Sub Recipient (Unilever Tea Tanzania in-house hospital selected to provide free ARVs in framework of the National Malaria Care and Treatment Plan; Access Bank-Nigeria-health systems strengthening of the malaria grant Round 8) • The Global Fund’s Dual Track Financing mechanism includes both governmental and non-governmental (private sector)actors in funding proposals •Through co-investment. Example: Marathon Oil and Equatorial Guinea•Through technical assistance. Example: Standard Bank- Financial Management Support; PriceWaterhouseCoopers as Local Fund Agent. Other examples include, McKinsey worked closely with the government of Nigeria to develop program management tool for the Round 8 malaria grant

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Private Sector as Contributor of financial and in-kind resources

•In 2008 the private sector contributed 5.2% of all GF resources ($622 million). The goal of the Private Sector delegation, under the leadership of Brian Brink, is to increase private sector contributions to 10% •(PRODUCT) RED – since its launch in 2006 generated more than $150 million Current (RED) partners include Converse, Gap, Emporio Armani, Apple, Starbucks, Hallmark, Dell, and American Express (UK only)•Chevron – first Corporate Champion with a total contribution of $55 million

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Innovative Mechanism: United Against Malaria

•The ‘Gift from Africa’ campaign, initiated three months ago in partnership with Friends of the Global Fund Africa, brings together companies from the private sector in Africa with the United Against Malaria campaign and its fund-raising partners (Nando’s, MTN and Standard Bank) •The campaign has initial commitments from Access Bank Nigeria, Anglo American South Africa, Cirrus Oil of Ghana, MTN Group and Old Mutual of South Africa, with Access Bank recently announcing a contribution of US$ 1 million

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Corporate Champions Program - Chevron• In January 2008, Chevron became the first Corporate

Champion committing US$ 30 Million over three years to the Global Fund. On October 5 2010, Chevron announced that it will commit an additional $25 million to the Global Fund, raising its 6 year investment to $55 million, the largest contribution from a single organization. In addition, Chevron will engage with the PRs and the CCMs to explore joint value-adding initiatives to complement grant related activities.

• The partnership has been launched or announced in 6 countries and the development of local partnerships have begun• In Indonesia, Chevron is partnering with the CCM and

PACT to deliver management training to Principal Recipients

• In the Philippines, Chevron will work with the Tropical Disease Foundation, to launch a tuberculosis awareness campaign

• In Thailand, Chevron is exploring partnering with the PR in communications activities in its retail stations

• Chevron has or will join the CCM in Nigeria, Angola, Turkmenistan, and probably more countries in the future

Chevron-supported Global Fund AIDS grant program in Nigeria.

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Opportunities for Further Engagement

• Deepening resource mobilization within the private sector to increase its contribution to 10% of total funding for GF grants

• Strengthen private sector involvement at country level through its role as Principal Recipient, Sub Recipient, technical assistance, CCMs and governance

• PSD and NBCs to strengthen NBCs engagement in building effective partnerships between the business community and the private sector

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