Cash Management Plan

1
Cash Management Plan

• Alice Albright
• GAVI Alliance Fund Board meetings
• 28 29 November 2007

2
Types of Fund Board Decisions

• GAVI Fund financing decisions
• Horizontal endorsement - 571.9 MM
• For multi-year programme and operating expense
  budgets
• Does not constitute a legal obligation or an
  accounting liability
• Vertical approvals - 684.7 MM
• Specifies the funding entity (GAVI Fund or GFA)
• Covers programme expenses over the next 12-24
  months
• 24 months for NVS and INS
• 12 months for HSS and ISS
• Generates an accounting liability on the books of
  the funding entity

3
Programme Expense Approval Cycle New
Horizontals 572m
millions
Programme Budget 557m 491m 66m other
3
4
Horizontal Endorsements

• Alliance is requested to approve 571.9 million
  in new horizontal programme endorsements
• Net of amendments to existing endorsements, this
  brings total horizontal endorsements to 2,486.0
  million

5
Horizontal Endorsements

• Endorsements to date for multi-year programmes
  total 2,486 million
• Net of disbursements, 2,049 million remains
• Expected revenue covers both existing and
  anticipated horizontal endorsements

6
Programme Expense Approval Cycle New
Verticals 685m
millions
New vertical approvals for 2008 321m
New vertical approvals for 2009 364m (NVS)
321
364
6
7
Vertical Approvals

• 636.4 million in vertical programme approvals
  have been given since QIV 2006, covering
  programme budgets through the first half of 2008
• Two thirds of this amount has been disbursed
• 684.7 million in additional vertical approvals
  are being requested today
• Extends the current vertical approval on existing
  programmes (311.6 million)
• Near-term funding requirement for new programme
  approvals (405.2 million)

8
Vertical Approvals

• The extension of existing approvals requested
  today represents the rollover of all existing
  programmes through year-end 2008 (HSS/ISS) or
  2009 (HSS/ISS)

9
Vertical Approvals

• Vertical approvals are requested for
• 2008 and 2009 for NVS and INS (vaccine supplies)
• 2008 for HSS and ISS (systems support)
• Maturity of vertical approvals being requested
  today

10
Vertical Approvals

• Of the 684.7 million in new vertical approvals,
  only 49.6 million is being requested for funding
  from GFA
• 50 million limit for additional requests to GFA
  during calendar 2007
• Approx. 200 million of the 635 million being
  retained by the GAVI Fund will be transferred to
  GFA during QI 2008
• GFA programme limit will increase by 500 million

11
Impact on GAVI Fund Cash Position

• Approved verticals are almost offset by
  expected inflows
• However, impact of additional vertical approvals
  will lower the 2009 cash balance

12
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