THREE DISEASES FUND DONORS MOVE AHEAD

C O N F I D E N T I A L SECTION 01 OF 03 RANGOON 001195

SIPDIS

SIPDIS

STATE FOR EAP/MLS; PACOM FOR FPA

E.O. 12958: DECL: 12/08/2015
TAGS: PHUM EAID SOCI KHIV BM
SUBJECT: THREE DISEASES FUND DONORS MOVE AHEAD

REF: A. RANGOON 154


B. 05 RANGOON 1422

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Classified By: Econoff TLManlowe for Reason 1.4 (b,d).


1. (SBU) Summary: The new Three Diseases (3D) Fund in Burma
should become operational by December 2006. The UN is
recruiting Fund staff and the UK just announced a $38 million
funding commitment to the 3D Fund, while the Netherlands
committed one million euros. The six donor nations -- UK,
EC, Australia, Netherlands, Norway and Sweden -- expect their
funds to increase access to and medical coverage for those
who suffer from malaria, TB, and HIV/AIDS in Burma. The NLD
supports the Fund, but many pro-democracy activists doubt the
GOB will resist interfering in the operations and permit full
transparency. While the Fund's structure addresses many
prior concerns about control and monitoring of funds, no one
can predict whether the GOB will honor its promise to allow
more access and accountability. End summary.

3D Fund Structure Addresses Some Accountability Concerns
-------------- --------------


2. (SBU) Australia, UK, EC, Netherlands, Sweden and Norway
have agreed to support the new Three Diseases (3D) Fund as a
"single communicable disease program" based on Burma's
National Strategies to Combat Malaria, TB, and HIV/AIDS. As
Fund literature states, the 3D Fund was "developed by a group
of concerned donors to address the health needs of the poor
and vulnerable" after the withdrawal of the Global Fund in
August 2005. AusAID's Rangoon Director, Sue Nelson, said
that donors are being careful to emphasize that the 3D Fund
"is not replacing the Global Fund. We did extensive research
before designing the program, and the bureaucratic structure
is very different from the Global Fund." Some donors will
also continue their bilateral malaria, TB and HIV/AIDS
projects outside the Fund's umbrella.


3. (U) The proposed 3D Fund design includes a Coordination
Group chaired by the Ministry of Health, supported by a
strategic and technical group for each disease. These
smaller groups include government, NGO, and civil society
representatives. The umbrella Coordination Group would
maintain a dialogue, facilitated by the UN Resident
Coordinator, with 3D Fund donors. The 3D Fund Manager, a
UNOPS employee, would decide which aspects of Burma's
National Strategies to Combat Malaria, TB, and HIV/AIDS could
be supported, and would supervise contracted agents to manage
the individual grants. The Fund Manager would also supervise
project implementation and contract management, including
accountability and monitoring. Projects would be drawn from
the National Strategies and would include efforts to
strengthen disease prevention, as well as treatment and care
for victims.


4. (SBU) According to Paul Thornton, consultant to the UN
Resident Coordinator, project contracts will be awarded and
implemented transparently through tendering and monitoring
processes conducted by the Fund Manager and overseen by 3D
Fund board members. Contracted service providers from the
UN, international and local NGOs, private sector
organizations, and local-level government would implement
programs selected by 3D Fund management. The 3D Fund's
organizational diagram shows a "firewall" to keep the control
of funds separate from GOB technical and strategic bodies.
The 3D Fund will implement projects from the three National
Strategies through independently administered contracts to
keep them separate from personnel supporting Burmese National
Programs.


5. (SBU) Donors expect that the five-year program will begin

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by December 2006. UNDP External Affairs Officer Beth Moorthy
told us on August 14 that arrangements to set up 3D Fund
offices in Rangoon are progressing rapidly, and they should
be ready before December. She said the Fund Manager position
has been advertised, but not yet filled.

3D Funding
--------------


6. (SBU) 3D Fund donors told UN, INGO and GOB reps at a
recent meeting that they had agreed to commingle funds, with
the expectation that access, range of coverage, and the
amount of support available to combat the three diseases in
Burma would increase as a result. According to former UK
Ambassador Vicky Bowman, donor countries may receive funding
from their headquarters on different schedules, but the
program design will allow the fund to proceed as soon as
money from any source is committed. On August 9, the UK's
International Development Minister announced a commitment of
$38 million over five years. The Netherlands government
approved one million euros in funding for 2006, and expects
to approve the same amount for 2007 and 2008. AusAID's local
director said she expects the Australian government to
announce its contribution soon, perhaps this week. As the
donors' level of interest and confidence has grown, so has
Australia's intended contribution, though it would still be
less than the UK's and EC's, Nelson said. Amb. Bowman said
that donors would ultimately provide total funding close to
the Global Fund's withdrawn total of $98 million.


7. (U) To cover ongoing health care programs during the
interim between the official end of Global Fund support on
August 21 and the anticipated December implementation of the
3D Fund, the UN/NGO/GOB Expanded Theme Group on AIDS in
Myanmar recently agreed to provide $252,000 from its Fund for
HIV/AIDS in Myanmar (FHAM).

Impact of the GOB's Draft NGO Regulations
--------------


8. (SBU) To address potential difficulties in implementation
caused by GOB-proposed guidelines regulating activities of
international organizations and NGOs in Burma (ref A),donors
recently presented an outline of their "operating principles"
for 3D Fund projects to Minister of Health Dr. Kyaw Myint.
According to AusAID's Nelson, the document covered such
topics as project access, equity, vulnerable communities,
travel, and advance notification deadlines. The outline
accommodates the EU Common Position and strictly addresses
donor concerns about GOB interference. Donors received a
brief reply from the Minister that the proposed "operating
principles" had been approved. The Minster gave no further
details.


9. (C) The Australian Ambassador told the Charge that the
Fund organizers decided it would be more expeditious to draft
their own regulations rather than engage in laborious
negotiations with the GOB over the regulations. Donor reps
tell us they intend to proceed adhering to the
internationally accepted principles of humanitarian
assistance they incorporated into their proposal, but the
GOB's minimalist response to the donors' proposed operational
guidelines worries our UN contacts. It may, however, also
work to the advantage of project implementors by allowing
greater flexibility as they attempt to work out arrangements
with GOB officials at regional and local levels.

Reaction from Pro-Democracy Groups
--------------


10. (SBU) Reaction from the pro-democracy groups ranges from

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cautious support to outright objection. The NLD sent a
letter to the DFID coordinator expressing its support for the
proposed fund. We separately confirmed in a meeting with the
NLD "Uncles" that the party does indeed support the Fund,
while remaining cautious about its ability to work
effectively without GOB interference and harassment. In
contrast, several human rights and student activists told
Emboffs that although they agreed with the NLD policy that
humanitarian aid should be allowed into the country, they
strongly believe the SPDC will never allow the conditions of
accountability, transparency, and financial management that
would allow the 3D Fund to succeed. They instead appealed
for additional funding for grassroots organizations that
promote democracy, arguing that the political climate must
change before humanitarian assistance would be allowed to
reach those in need.


11. (SBU) Comment: By designing a program that keeps control
of funding out of the hands of the GOB and its proxy
organizations, 3D Fund donors have tried to address some of
the concerns that led to the 2005 withdrawal of the Global
Fund, particularly those that restricted the donors' ability
to select and adequately monitor fund projects. Several
highly reputable INGOs with experience working within Burma
have expressed an intention to bid on 3D Fund projects, which
should strengthen confidence that funds will be well spent.
However, many opportunities for GOB interference lie ahead,
especially when it comes time to begin project
implementation, obtain access to project sites, and ensure
transparency and accountability. With the British and Dutch
funding commitments, the 3D Fund has gotten underway despite
remaining doubts, and donors will be watching carefully to
ensure their funds go where intended. The temptation for the
GOB to continue its previous practices of restriction and
interference will be great, but so are the country's public
health needs. The success of the 3D Fund will be a good test
of whether Burmese senior leadership is willing to work with
the international community in a more transparent manner to
help address the country's most serious needs. End comment.

VILLAROSA