BURMA: HEALTH MINISTRY SUBMITS GLOBAL FUND

C O N F I D E N T I A L SECTION 01 OF 03 RANGOON 000326 SIPDIS STATE FOR EAP/MLS, S/GAC, AND F NSC FOR LIZ PHU BANGKOK FOR RDMA DEPARTMENT PLEASE PASS TO USAID/AME AND HHS E.O. 12958: DECL: 02/19/2019 TAGS: SOCI EAID PHUM KHIV PGOV SENV BM SUBJECT: BURMA: HEALTH MINISTRY SUBMITS GLOBAL FUND APPLICATION REF: A. RANGOON 207 ¶B. RANGOON 66 RANGOON 00000326 001.2 OF 003 Classified By: Economic Officer Samantha A. Carl-Yoder for Reasons 1.4 (b and d). Summary -------------- ¶1. (SBU) The Minister of Health submitted the Burmese Government's Round Nine Global Fund (GF) application on May 31, requesting USD 320.6 million over five years to fund HIV/AIDS, tuberculosis (TB),and malaria programs. Funds, if approved, will be overseen by two principal recipients: Save the Children (US) and the UN Office for Project Services (UNOPS). According to Country Coordinating Mechanism (CCM) members, the proposal is technically sound and meets GF criteria. The Health Ministry has acknowledged that competition for Round Nine monies will be difficult due to GF's budget constraints, and expects the GF Secretariat to make a decision by November 2010. End Summary. Submitting the Round Nine Application -------------- ¶2. (C) After almost one year of coordination with relevant Burmese Government agencies, local and international NGOs, and donors, the Minister of Health submitted the GOB's final Round Nine Global Fund application on May 31. According to Julia Kemp, the DFID Health Advisor and donor representative to the CCM, the Global Fund Secretariat acknowledged receipt of the proposal and pledged to review the proposal for technical merit. The GOB's funding request totals USD 320.6 million over five years: USD 157 million for HIV/AIDS, USD 85 million for TB, and USD 77 million for malaria programs. Funds would be administered by dual Principal Recipients (PRs) Save the Children (US) and UNOPS. ¶3. (C) The final application is approximately USD 70 million more than originally planned (Ref A). According to Kemp, the reason for the increased funding request is twofold: to cover higher than expected operational costs for the dual Principal Recipients (PRs) and to expand program coverage. She noted that while there are funding duplications in the three individual disease proposals, the GF Secretariat, should it approve the proposal, will likely negotiate with the GOB to lower overhead costs. ¶4. (C) Marie Stopes International Country Director and CCM member Sid Naing told us that the final proposals are technically sound and meet GF criteria, although he acknowledged they could have been written more cogently. Other CCM members and donors have voiced similar views Kemp commented that the GOB underestimated the amount of work required for a GF application, but indicated the Minister of Health and CCM members remain ready to work with GF technical experts during the review of the proposal. ¶5. (C) According to the Minister of Health, the GF Secretariat should make a decision on Round Nine proposals by November 2010. He acknowledged to CCM members on May 29 that the Global Fund Executive Director told him there is limited funding for Round Nine and competition for funding will be RANGOON 00000326 002.2 OF 003 difficult. Kemp, as donor representative, emphasized to the CCM that the GF has only USD 900 million for Round Nine (which covers the first two years of a proposal). While she did not know how much money other countries were requesting, she noted that Round Eight funding requests totaled more than USD 3 billion. She warned CCM members that the GF could fully fund the GOB's proposal, fund only part of it, or not fund it at all. While the Minister remains optimistic, Kemp surmised that he is worried the GF Secretariat may not support the GOB's proposal. "Free and Unfettered" Access -------------- ¶6. (C) Kemp confirmed that the final proposals attempts to address adequately the issues that predicated the GF's withdrawal in 2005, particularly the issue of "free and unfettered" access. The GOB's application includes a cover letter from the Minister of Health specifically addressing these issues. (Note: We will send a copy of the final proposal and cover letter to the Department. End Note.) Kemp noted that during the May 29 meeting, the Ministry of Planning requested, and the CCM approved, a change to the final proposal language on access from "visas for international staff can be very long to obtain" to "visas for international staff take between two to three weeks for approval." Sid Naing observed that the new language establishes a benchmark for visa approval, to which the GF Secretariat can refer. Sid Naing believes the GOB may not understand the significance of this language change, but by signing the final application, it has committed itself to providing "free and unfettered" access to program sites. Next Steps -------------- ¶7. (SBU) Kemp observed that, although the application is complete, the Ministry of Health and CCM still have work to do. She encouraged the Minister to hold additional CCM meetings, since the CCM should coordinate all health programs, not just the Global Fund. She also requested the CCM to begin the process of implementing the programs under the CCM Governance Manual, including a gender audit, training of CCM members, and reviews of the national disease strategies. In preparation for a potential Global Fund grant, the dual PRs have begun the process of applying for an OFAC license to allow them to operate in Burma under GF auspices. Comment -------------- ¶8. (C) The Health Ministry has made efforts to be open and transparent throughout the GF application process: establishing a diverse, representative CCM; supporting strong PR candidates; seeking technical assistance; and allowing donors to review and comment on all proposal drafts. The Minister also acceded to donors' request to include a personal cover letter with the application stating how the GOB would address factors that led to the GF's 2005 withdrawal. Although approval of a Round Nine grant is far from certain, the application process has been useful to educate MOH personnel, including the Minister, about how to RANGOON 00000326 003.4 OF 003 work constructively with the international community. The Minister has done so at personal risk; as he himself has admitted, if the GOB's GF application is unsuccessful, he may be out of a job. DINGER