Financial difficulties have caused the Global Fund Board to cancel Round 11. The Board also announced new rules for grant renewals in an attempt to find savings that can be applied to funding new proposals.
The estimate of funds available for Round 11 declined to $0.8 billion in September 2011, and then to a negative amount this month. The decline was caused primarily by some donors changing their minds regarding their so-called pledges, and other donors saying that they would delay payment of their pledges.
Given that there is no money for Round 11, the next opportunity for countries to apply for new grants will be during the next replenishment period 2014-2016. Some countries have existing grants that will reach the end of Phase 2 well before 2014. Many of those countries have been hoping to be approved for Round 11 grants.
Because that will not be possible now, the Board has agreed to put in place a Transitional Funding Mechanism that will provide for continuation of essential prevention, treatment and/or care services by current grantees. Details of this mechanism will likely be announced by The Global Fund in the coming weeks.
However, even with the cancellation of Round 11, the Global Fund did not have enough money to pay for the Transitional Funding Mechanism, and for some Round 10 grants. The Fund stopped signing Round 10 grant agreements about a week ago. It all depends on whether donors deliver their 2011 pledges during 2011, and whether at least some of them deliver their 2012 pledges earlier rather than later in 2012.
Please check The Global Fund website for the latest updates.