Global Fund Press Release

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THE GLOBLA FUND TO FIGHT HIV, TB, AND MALARIA

Press Release from the Board Meeting

$2 BILLION NEEDED NEXT YEAR TO FUND AIDS, TB AND MALARIA PROGRAMS

Programs Are Currently Poised to Scale Up the Fight Against the

Epidemics,According to Assessment Commissioned by the Global Fund

Donors will need to double their contributions to the Global Fund to

Fight AIDS, TB and Malaria next year in order to meet the anticipated

increase of quality health programs offering effective responses to

the epidemics, according to financial projections released by the

organization today.

To date, $2.1 billion has been pledged to the Global Fund over the

next five years. In 2003, the Global Fund's needs will grow an

additional $2 billion to finance the increasing number of worthy

proposals. In 2004, $4.6 billion more will be required. These

forecasts are based on the growing capacity of countries to absorb

these resources and expand effective programs, and evidence of a

sharp increase in both quantity and quality of grant proposals.

" The current situation requires a substantial front-loaded capital

investment to scale up existing efforts, " said Prof. Feachem,

executive director of the Global Fund, who called for the additional

$2 billion in 2003. " The programs are ready. Any delay now will be

measured by millions of lives lost and billions of dollars of

additional cost to later respond to the expanded epidemics. "

A study published this summer in The Lancet suggests that two-thirds

of new HIV infections expected by 2010 could be prevented with an

immediately expanded response of prevention interventions. The U.S.

National Intelligence Council reported last week that, without a

massive global response, HIV prevalence in China, Ethiopia, India,

Nigeria and Russia could be up to three times higher than estimates

released earlier this year, leading to a global burden that could

surpass 100 million cases.

" The impact and pace of AIDS, TB and malaria cannot be

overestimated, " said Dr. Chrispus Kiyonga, chair of the Global Fund

board. " The epidemics will cost us nearly 6 million lives this year

and nearly $120 billion in lost productive years of life. "

In April 2001, United Nations Secretary General Kofi n proposed

the creation of a global " war chest " to fight AIDS, TB and malaria,

and called on donors to provide at least $10 billion additional funds

annually to fight these three big diseases of poverty. Later that

year, the Commission on Macroeconomics and Health confirmed that at

least $10 billion annually in additional donor funds would be

required to fight the three diseases.

$2.1 billion was quickly pledged to the Global Fund, with the United

States providing the largest government contribution with a sum of

$500 million, followed by the United Kingdom and Italy. The Bill and

Melinda Gates Foundation has been the leading philanthropic donor

with a commitment of $100 million, and Winterthur Insurance/Credit

Suisse and ENI are currently the largest corporate donors with

pledges of $1 million and $.5 million respectively.

In January 2002, the Global Fund became operational. Within three

months the board committed $616 million of funding to 40 countries

over two years, with further commitment pending program performance

and fund availability.

As of 10 October, $483 million of the pledged $2.1 billion had been

transferred into the Global Fund's account. Of the 31 countries that

have pledged support to the Global Fund, only Ireland had made a

complete payment. Seven other countries had made partial payments.

A second round of proposals is currently underway. Today, the Global

Fund disclosed that approximately $5.2 billion is being requested of

the Global Fund from second round proposals that have meet initial

eligibility criteria. A decision on which of these proposals should

be awarded funding is scheduled for January 2003.

" If we go about business as usual, we will fail, " said Feachem. " The

Global Fund was created to help take the world's response to a higher

financial and operational level. The three epidemics can be driven

back where there is top-level political commitment, where the public

sector and private sectors work together, and where there is

accountability for achieving results. "

At the conclusion of the Global Fund's third board meeting today in

Geneva, the board agreed to make resource mobilization a main focus

of its next meeting in January 2003.

# # #

The Global Fund to Fight AIDS, TB and Malaria is an independent,

public-private partnership established in 2002 that is working to

attract significant new resources to fight AIDS, tuberculosis and

malaria, and then to innovatively manage and disburse these funds to

effective prevention and treatment programs in countries with

greatest need.

General background information on the Global Fund can be found at

www.globalfundatm.org For additional information, please contact the Global

Fund to Fight AIDS, TB and Malaria at + 41 22 747 7780.

For region-specific information, contact:

Asia Bobby + 91-98-22063119

Africa Junaid Seedat + 27-82-435-1321

Latin America Jove Oliver + 46-73-334-4702

North America Jim Palmer + 1-202-262-9823

Europe ngela Bavicchi + 41-79-202-0261

Francophone countries Bertrand + 33-6-60040442

United Kingdom Louis Da Gama + 44-208-357-7413

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