16th GAVI BOARD MEETING
Paris, France, 19-20 July, 2005
Summary Report

4. Bridge financing investment case

• The feasibility of co-financing will depend upon the willingness and ability of country governments and other donors to contribute to vaccine costs.
• The process for handling countries in crises, or those unable to meet their co-financing obligations, requires further development.
• Explicit mechanisms for monitoring the implementation of bridge financing will need to be established, so that operations can be modified as needed.
• Policies must be developed and applied with manufacturers and markets in mind. For example, some concern was expressed regarding the setting of a so-called “working price” given the risks of creating market constraints and the many variables in calculating such a price. Even so, there was recognition of the need to set a certain parameter for future planning and financial projections.
• Even though financing more expensive vaccines is proving a significant challenge, the programmatic benefits of combination vaccines are still highly valued by the countries.

DECISIONS

The Board:

4.1 Endorsed the three main principals of the bridge financing:

4.1.1 Flatline support (extending 100% support through 2007 – affects 11 countries)

4.1.2 The concept of a “working” price given the need for a figure for planning and budgeting, with a request to come up with a new name that better reflects its imprecision.

4.1.3 Co-financing, so that countries make commitments to gradually increase non-GAVI contributions to the vaccine’s costs over the years through 2015.

4.2 Agreed that the project management structure as proposed needs to be reconsidered to ensure that it strengthens capacity of countries and builds upon existing structures and capacity of partners.

4.3 Endorsed the proposed budget envelope of $520 million as a provisional total, with the understanding that should assumptions about vaccine price declines not materialize, the costs of bridge financing would increase. The Board will need to be kept regularly informed.