Long-term funding strategy Marie-Ange Saraka-Yao GAVI Alliance - PowerPoint PPT Presentation

Long-term funding strategy Marie-Ange Saraka-Yao GAVI Alliance Board meeting Washington, DC, USA, 12-13 June 2012

Overview Reflection Finance Burden share Diversification Guidance Overview  Lessons from first replenishment  Priorities for long-term funding  Financing instruments  Burden sharing directions  Donor diversification GAVI Alliance Board meeting 12-13 June 2012 1

Overview Reflection Finance Burden share Diversification Guidance “Saving lives with excellent value for money” -David Cameron London, 13 June 2011 GAVI Alliance Board meeting 12-13 June 2012 2

Overview Reflection Finance Burden share Diversification Guidance Lessons from first replenishment Success factors Challenges Recommendations 1) Collaborative 1) Underdeveloped 1) Deliver on promise replenishment model strategy 2) Build consensus on 2) Donor commitment & 2) Limited timeframe & sustained replenishment identification with GAVI operational plan model mission 3) Leadership transitions 3) Develop 3) Compelling evidence comprehensive funding 4) Stakeholder strategy 4) Political timing & engagement adaptability 4) Plan early and clarify management of process 5) Lobbying & building public support 6) Leadership & coordination Focus of funding strategy: • Mix of funding mechanisms • Sustainable burden sharing • Consensus building process GAVI Alliance Board meeting 12-13 June 2012 3

Overview Reflection Finance Burden share Diversification Guidance Options for future GAVI expenditures 2011-15 2016-20 2021-30 US$ millions GAVI Alliance Board meeting 12-13 June 2012 4

Overview Reflection Finance Burden share Diversification Guidance GAVI’s assured resources from donors AMC, IFFIm, Matching Fund, direct contributions AMC Implemented IFFIm launched In addition to assured resources noted above, GAVI receives approximately 2% of its overall assured resources from the drawdown of cash & investments, and investment income. GAVI Alliance Board meeting 12-13 June 2012 5

Overview Reflection Finance Burden share Diversification Guidance Challenge of mobilising long-term funding 2011-15 2016-20 2011-15 2016-20 proceeds donor donor proceeds to GAVI contributions to contributions to to GAVI IFFIm IFFIm GAVI Alliance Board meeting 12-13 June 2012 6

Overview Reflection Finance Burden share Diversification Guidance Building a diverse capital structure • AMC/financial • AMC instruments • IFFIm • IFFIm • Long-term direct • Potential LMIC contributions market access • support Long-term Market financing shaping instruments mechanisms Donor Flexible diversification funding • IFFIm • IFFIm • Backstop facility • GAVI Matching Fund • Cash and • Short-term direct investments GAVI Alliance Board meeting 12-13 June 2012 7

Overview Reflection Finance Burden share Diversification Guidance Moving towards sustainable burden sharing Diverse donor base Active market shaping Firm country co-financing GAVI Alliance Board meeting 12-13 June 2012 8

Overview Reflection Finance Burden share Diversification Guidance Burden sharing directions GAVI Alliance Board meeting 12-13 June 2012 9

Overview Reflection Finance Burden share Diversification Guidance Diversifying GAVI’s donor base Extend & expand donor base: 23 Donors - New development 16% partners - Private sector including the 12 Donors 6 Donors 77% 84% GAVI Matching Fund GAVI Alliance Board meeting 12-13 June 2012 10

Overview Reflection Finance Burden share Diversification Guidance Proposed roadmap to resourcing GAVI 2016 – 20 Phase I Phase II Phase III Phase IV Illustrating GAVI’s Exploring and Resourcing Delivering GAVI 2016 – 20 GAVI 2016 – 20 defining leadership in GAVI 2016 – 20 immunisation Milestones: Milestones: Milestones: Milestones (2016): 1. GAVI 2016 – 20 1. Mid-term review 1. Evidence base 1. XX US$ billion successful and released options defined in programmes donors’ 2. Consensus built 2. XX US$ billion funded around confidence built mobilised 2. Y number of predictable 2. Adjusted GAVI 3. Firm co- countries brand launched financing & funding model graduated and advocacy active market- 3. Long-term 3. Mid-term review funding strategy networks shaping 2018 adopted strengthened progress GAVI Alliance Board meeting 12-13 June 2012 11

Overview Reflection Finance Burden share Diversification Guidance Early guidance  Funding model and capital structure  Long-term vs. short-term financing  Burden sharing directions  Co-financing vs. donors vs. market-shaping  Donor diversification  De-concentration of donor base  New public and private donors GAVI Alliance Board meeting 12-13 June 2012 12

GAVI Alliance Board meeting 12-13 June 2012 13