Global Fund partners with Pledge Guarantee for Health
The Global Fund announced the partnership with the Pledge Guarantee for Health at the GBC Health Conference in New York. The PGH is a new financing mechanism that can facilitate innovative financing to expedite the disbursement of donor funds, make global health supplies more accessible and reduce costs for developing countries.
"The Global Fund has undergone a number of enhancements in our process and we are joining efforts with partners like PGH to not only accelerate delivery of essential health commodities but also to increase value for money," Mark Dybul, the executive director of the Global Fund, said.
The PGH was developed and incubated by the United Nations Foundation. The funding mechanism could increase the impact of donor funds and improve healthcare access and outcomes for millions of people in the developing world.
"PGH works because it delivers aid faster, saving millions of lives," Kathy Calvin, the president and CEO of the United Nations Foundation, said. "While the financial mechanisms may be complex, the goal of PGH is simple: to quickly and effectively reduce deaths from easily preventable diseases."
The PGH will have access to $100 million in credit over five years, through a partial guarantee by the U.S. Agency for International Development and the Swedish International Agency for Development Cooperation and collaboration with commercial banking partners. The credit will speed up the procurement of essential health supplies and medicines by civil society partners and governments.
"We all have to think creatively and collaboratively, through partnerships like PGH, to bring stakeholders together and focus on delivering more donor value for money," Anders Nordström, the ambassador for global health in the Swedish Ministry of Foreign Affairs, said.
Merck and Co., Inc., and Vestergaard Frandsen agreed to provide up-front price discounts to help recipients who use PGH to buy their health supplies.