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

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Classified By: Economic Officer Samantha A. Carl-Yoder for Reasons 1.4
(b and d).

Summary
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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
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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

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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

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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