Innovative funding
GAVI is at the forefront of finding new ways of raising and disbursing money for immunisation so that financing for national programmes is more predictable and sustainable.
Private sector thinking
GAVI is expanding its use of two mechanisms that draw heavily on private-sector thinking to help overcome historic limitations to development funding. These mechanisms are the IFFIm and the AMC. The former reflects the need to the need to ensure predictable flows throughout an aid cycle; the latter to meet disproportionately high costs in the early stages of implementing aid programmes.The International Finance Facility for Immunisation (IFFIm), developed in conjunction with GAVI, was proposed to the Group of Seven (G7) countries by the UK government in 2005. Donor countries make 10-20 year, legally-binding aid commitments. IFFIm borrows against these pledges on capital markets, raising funds that can be disbursed in an optimal way.
The November 2006 IFFIm bond launch raised US$ 1 billion. US$ 854 million of this has already been disbursed to developing countries, as at January 2008.
The aim of IFFIm is to raise US$4 billion on capital markets over the next 10 years – enough to support the immunisation of half a billion children through immunisation campaigns against measles, tetanus, and yellow fever.
An Advance Market Commitment (AMC) provides a way of accelerating the development and manufacture of vaccines. Through an AMC, donors commit money to guarantee the price of vaccines once they are developed, provided they meet stringent, pre-agreed criteria on effectiveness, cost and availability, and that developing countries demand them. By guaranteeing an affordable long-term price, that is often referred to as the "tail price", the AMC also supports sustained use of the vaccine. In 2007 GAVI began working with partners on a US$1.5 billion AMC pilot to fund the introduction of suitable pneumococcal vaccines in Gavi-eligible countries.
Direct funding over many years
In addition to receiving IFFIm and AMC funding, GAVI also seeks direct funding from donor governments. 67% of donor governments make multi-year (spanning three years or more) donations to GAVI, as at January 2008. This has risen from 33% of donor governments in 2005.Countries co-financing their immunisation
Stable funding to GAVI in turn helps GAVI supported countries plan and progressively undertake the financing of their own vaccine programmes to ensure long-term sustainability. GAVI introduced the principle of co-financing immunisation in 2007. But some countries were already co-financing before then. Those that were not are now being asked to start co-financing when they introduce new vaccines, and to co-finance existing vaccines beyond the first five years (or equivalent) of GAVI support.GAVI-eligible countries have been grouped according to their expected ability to pay, and the co-financing levels vary across the different groups. GAVI will conduct an evaluation of the co-financing policy in 2009. Based on the outcomes of the evaluation, current co-financing levels, country groupings and eligibility criteria are expected to be revised in 2010.