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Board -2020 -Mtg -6-Doc 08 -Annex B

Annex B: COVAX Budget 2021 and three -year forecast
Section A: Summary
1.1 This objective of this paper is to present the Office of the COVAX Facility
budget for 2021 and Forecast 2022 and 2023 to the Board for approval .

1.2 The July Board meeting approved US$ 8.4 million seed funding to enable the
setting up of the Office of the Covax Facility. It was agreed that t hese costs
would ultimately be funded by the SFP contributions and AMC funds.

1.3 A three year budget has been prepared for the expected life of the Facility ( a
three year facility was outlined in the terms and conditions for the SFPs). This
budget will be funded by the upfront payments of SFPs and Gavi COVAX
AMC funds.

1.4 Total Facility operating c osts are forecast to be US $ 135 million over the three
years.

1.5 The budget Facility costs for 2021 are US $ 55 m illion of which US $ 23 m illion
are staff/ consultants/ professional fees.

1.6 An estimate has been made to identify (where possible) and allocate costs of
the Facility to SFP and AMC participants. New processes are being
introduced and new risk mitigation measures established some specifically to
support the new SFPs. It is therefor e expected that more of the Facility costs
will be funded by SFPs than the AMC. An initial estimated split of costs of
70% SFP and 30% AMC has been made and a more accurate assessment
will be made as the Facility design is finalised and operationalised.

1.7 The 2021 budget has been recommended for approval by the AFC .
Section B: Office of the COVAX Facility Budget
2.1 The table below provides a summary of the COVAX operational ex penditure
budget for 202 1 along with projections for 202 2 and 202 3.

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Board -2020 -Mtg -6-Doc 08-Annex A

Annex A : Implications/Anticipated impact
? Risk implication and mitigation, including information on the risks of
inaction
Risks associated with the Facility are set out in the paper and in Section 3 of the
Risk & Assurance Report (see Doc 06 ).
? Impact on countries
The failure of the Facility to provide up to 2 billion doses of COVID -19 vaccines
by the end of 2021 will impact equitable access to COVID -19 vaccines, in
particular for low er -income economies.
? Impact on Alliance
The full Alliance is invested in the success of the COVAX Facility and the
COVAX AMC, with Gavi also seeking secondments to ensure that is it fully
leveraging the expertise from acro ss the Alliance partners and stakeholders .
? Legal and governance implications
Gavi, as the legal entity of the Facility is entering into the commitments with
participants and manufacturers and ultimately bears any exposure whether
financial, programmatic or reputational.
The key legal risk has been identified as the SFPs not entering into supply
agreements, while Gavi will have to comply with its commitment to pay for the
firm order commitments to manufacturers. I n that context, i t is worth noting that,
once Gavi exercises its option under its advance purchase agreement (APA)
with the relevant manufacturer (on the basis of the exercise of options by the
SFPs un der the optional model ), Gavi?s options in the APA effectively become
firm order commitments before the SFPs have entered into their supply
contracts with th e relevant manufacturer or procurement agent . This window
represents a potential liability for Gavi.
While a number of SFPs under the committed model have procured a
guarantee, in many instances, the guarantee has been issued by the relevant
SFP?s Ministry of Finance or Ministry of Health, which rep resents the same
sovereign risk as that of the original non -payment. By contrast, t he SFPs under
the optional model do not have a guarantee to cover for the failure to enter into
a supply agreement after they have exercised their option to procure the
vacc ines.

Gavi is working with Citi group to address this risk through such mitigants as
requiring SFPs to put money in escrow (which would require an amendment to
the ir existing commitment agreement with Gavi ) or to obtain a standby letter of
credit (which the relevant SFP would have to pay for), or requiring Gavi to
procure a breach of contract guarantee f rom the Multilateral Investment
Guarantee Agency ( MIGA ) for certain countries within MIGA?s scope of
coverage, as well as a liquidity facility on top (given that claiming under MIGA?s
guarantee requires taking the defaulting country through an arbitration process
and obtaining a favourable arbitral award ).

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Board -2020 -Mtg -6-Doc 07 -Annex A
Annex A: Implications/Anticipated impact

Risk implication and mitigation: There are two key risks of the proposed MICs
Approach. The first is that the Secretariat does not have the capacity to deliver
successfully, given limited bandwidth across existing core Gavi and COVAX
activities. This is mitigated through a gradual, targe ted approach in the next 18
months, the request for two full time equivalents (FTEs), and the identification of
synergies with the COVAX Facility, as all never -Gavi MICs proposed for near -term
engagement are in the 92 economies engaged in the Advance Marke t
Commitment. Without additional resources, the Secretariat will not be able to roll
out the MICs Approach and it would need to be deprioritised .

The second risk is that a focus on COVID -19 vaccine introduction detracts from
the routine immunisation agend a, which is critical in these countries. Gavi will
prioritise the backsliding agenda in former Gavi -eligible countries, and, where
relevant, use COVID -19 as an entry point for a broader immunisation agenda in
both former and never Gavi -eligible countries.

Risk of inaction: If the Secretariat does not begin targeted engagement with MICs
now, there is a risk of further backsliding on routine immunisation in former Gavi -
eligible countries that would undermine the critical work done to date. There is also
risk that former and n ever Gavi -eligible countries are not prepared to introduce
lifesaving pneumococcal conjugate, rotavirus, and human papillomavirus vaccines
once the acute phase of the pandemic has subsided.

Impact on countries: The proposed Approach is critical to helpin g MICs mitigate
reductions in routine immunisation coverage and start to build the ecosystems
necessary to introduce new vaccines, especially for zero -dose children and missed
communities.

Impact on Alliance: The Alliance is significantly stretched by CO VID -19 and may
have limited capacity to implement the proposed MICs Approach. This is mitigated
by the provision of resources, accessible to partners, to enable delivery of the MICs
Approach.

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Board -2020 -Mtg -6-Doc 02b
Report to the Board
15-17 December 2020

Section A: Executive Summary

Context

This paper requests the Gavi Alliance Board to approve the bi -annual budget
related to the Partners? Engagement Framework (PEF) and the Secretariat
Resources for the fiscal years 2021 and 2022 , subsequent to the Audit and
Finance Committee (AFC) recommendation .

In light of the COVID -19 pandemic, t he Board has reinforced the priorities for Gavi
5.0 to ensure that we leave no one behind with immunisation and address the
country challenges brought about by the pandemic. Therefore, recalibrated
priorities include m aintaining, restoring and strengthening immunisation reaching
zero -dose children and missed communities , and s upporting the timely delivery of
COVID -19 vaccines .

Safeguarding domestic financing for immunisation in a fiscally constrained
environment to achieve these strategic priorities, all of Gavi?s levers will have to be
used, including additional investments in Health Systems Strengthening (as per
Doc 05b) , Partners Engagement Framework (PEF), and Secretariat Resources.
This paper specifically addresses the additional resources requested for PEF and
the Secretariat .

To deliver this ambitious agenda will require new skills, new capabilities, new
partnership s and new resources, therefore, t he budget for PEF and the Secretariat
over the 5 years of the next strategic periodic will increase by 19 % (variance
between Gavi 5.0 and Gavi 4.0 budgeted expenditure - excluding Post Tran sition
Support ).

PEF: total budgeted amount for Gavi 5.0 stands at US$ 1,231 million, a 14%
increase compared to Gavi 4.0 budgeted expenditure . (When excluding Post
Transition Support, which is getting phased out - the underlined growth is 19%).
An additional US$ 60 million is being proposed for partners to support delivery of
COVID -19 vaccines in Gavi AMC 92 economies outside PEF as part of the
US$ 150 million COVID delivery cost approved by the Board .

Secretariat: total budgeted amount for Gavi 5.0 stands at US$ 648 million , also a
19% increase compared to Gavi 4.0 budgeted expenditure.
SUBJECT : PARTNERS? ENGAGEMENT FRAMEWORK &
SECRETARIAT BUDGET 2021 -2020
Agenda item: 02 b
Category: For Decision

Classified as Internal #
Gavi Alliance Board Workplan
Gavi Board Paper Type Mar/Apr June Nov/Dec Mar/Apr June Nov/Dec Mar/Apr June Nov/Dec Mar/Apr June Nov/Dec Mar/Apr June Nov/Dec
A.Strategy/Performance/Risk/MELCEO's Report CEO's Report Discussion 2021-2025 Strategy 2021-2025 Strategy, Partnerships and Programmes Discussion Discussion Discussion Discussion Discussion Discussion Discussion Discussion Discussion Discussion Discussion 2021-2025 Strategy Gavi 5.0 Decision Measurement Framework (Targets & Indicators) Measurement Framework Decision Decision Decision Funding Policies* Gavi 5.0: Operationalisation Decision Decision Decision Innovation (including private sector partnerships) TBD TBD Middle Income Countries (MICs) TBD Decision Decision Civil Society and Community Engagement Approach TBD TBD TBD VPD Surveillance TBD Decision Decision Risk and Asurance Report Risk and Assurance Report Decision Decision Decision Decision Decision Decision B.Vaccines & SustainablityTyphoid TBD Information Information Pneumococcal AMC (Advance Market Commitment) TBD Information Inactivated Polio Vaccine (IPV) co-financing approach TBD TBD TBD Malaria TBD Information Information Guidance Update on vaccines for epidemic preparedness and response TBD Discussion Discussion Vaccine Investment Strategy TBD Decision Decision Decision Decision COVAX Development (details TBC) TBD Decision Decision Decision C.PolicyFragility, Emergencies, Refugees Policy TBD Decision Decision Supply & Procurement Strategy Review of Gavi's Supply and Procurement Strategy Decision Decision Transparency and Accountability Policy Decision D.Country ProgrammesNigeria TBD Information Information Information Information Information Information PNG TBD Information Information Strategic Partnership with India TBD Decision Guidance Decision Post-Transition Support (e.g. Angola, Timor-Leste) TBD Information Fiduciary risk assurance and financial management capacity building TBD Decision Decision E.Finance/Audit & Investigations Annual Accounts Annual Financial Report Decision Decision Decision Decision Decision Decision Financial Forecast Financial Update, including forecast Decision Decision Decision Decision Decision Decision Budget Financial Update, including forecast Decision Decision Decision Decision Decision Decision Audit & Investigations Report Audit & Investigations Report Information Information Information Information Information Information F.GovernanceBoard Chair Appointment Board Chair Appointment Decision Board Vice Chair Appointment Consent Agenda Decision Decision Decision Decision Committee Chair Appointments Consent Agenda Decision Decision Decision Decision Decision Decision Board and Committee Appointments Consent Agenda Decision Decision Decision Decision Decision IRC Appointments Consent Agenda Decision CEO Appointment Consent Agenda Decision Decision Secretary Appointment Consent Agenda Decision Treasurer Appointment Consent Agenda Decision Amendments to Governance Documents (Statutes, By-Laws, Committee Charters) Consent Agenda Decision IRC Terms of Reference TBD Decision Audit & Investigations Terms of Reference TBD Decision G.ReportingCommittee Chair Reports Committee Chair and IFFIm Board reports Information Information Information Information Information Information Information Information Information Information Information IFFIm Chair Reports Committee Chair and IFFIm Board reports Information Information Information Information Information Information Information Information Information Information Information Replenishment/Resource Mobilisaton TBD Discussion HR Report Closed Session Information Information Information Information Information Information Annual Report on Implementation of the Gender Policy TBD Information Information Information Information Information Information CEPI Progress Report Annex to Board pack/On BE as additional materials Information Information Information Information Information Information Information Information Information Information Information Board and Committee minutes Annex to Board pack/On BE as additional materials Information Information Information Information Information Information Information Information Information Information Information H. Pre-Board Technical Briefing SessionsTBCTBC
*Includes Eligiblity & Transition Policy, Co-Financing Policy, HSIS Support Framework, CCEOP
Last updated - 2 December 2020
Next Board Meetings : March/April 2021, TBD (Board Retreat) 23-24 June 2021, Geneva 1-2 December 2021, Geneva
2021 2022 2023 2024 2025 Gavi 5.0
Board-2020-Mtg-6-Doc 01h

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Report to the Board


Board -2020 -Mtg -6-Doc 02a -Annex B
Annex B: Terminology and rounding
Terms used in this paper have the meanings described below, and are relevant to
Gavi?s Board Approved Programme Funding Policy:
a) Assured Resources comprise:
? Cash and investments of Gavi, in the amount that exceeds the Cash and
Investments Reserve (see (g) below)
? Expected proceeds from IFFIm, based on existing donor pledges
? Expected AMC and any other contributions that are contingent on
programmatic expenditu re included in the expenditure forecast
? Confirmed direct contributions to GAVI Alliance that are pledged under
already -signed agreements or otherwise confirmed in writing.
? Projected investment income
b) Allowance for Further Direct Contributions (for the purpose of approving
funding decisions): An allowance for further expected direct contributions
from existing donors who have not confirmed their pledges for each year,
based on current overall contribution levels. The allowance is mandated by
the Pro gramme Funding Policy and is important towards enabling
programme funding decisions to be made while pledges have yet to be
completed for particular years. The allowance assumes that in years where
currently confirmed direct contributions total less than t he current level,
further contributions will bring the total to that level.
c) Qualifying Resources : The sum of Assured Resources and the Allowance for
Further Direct Contributions (i.e. (a) plus (b) above) .
d) Existing Programmes : Country programmes (for vaccine and cash -based
programmes and investment cases) that have already been approved for
support by Gavi, the Partners? Engagement Framework and the Secretariat
budget.
e) New Requests : Projected demand from country applica tions that are
currently being recommended by the Independent Review Committee for
approval.
f) Expected Future Requests: Projected demand from countries expected to
request Gavi support in the future for the currently approved portfolio of
vaccines and cash -based programmes. It does not include any additional
vaccines that Gavi may consider for support in the future.
g) Cash and Investments Reserve : The reserve required by the Programme
Funding Policy to be maintained at a minimum equalling eight months of
expected annual expenditures.

Board -2020 -Mtg -04 1
Minutes



Gavi Alliance Board Meeting
30 Ju ly 2020
Virtual meeting


1. Chair?s Report

1.1 Finding a quorum of members present, the meeting commenced at 14.1 4 Geneva
time on 30 July 2020. Dr Ngozi Okonjo -Iweala, Board Chair, chaired the meeting.

1.2 The Chair welcomed the Board to t his exceptional Board meeting, noting the
importance of the Board c oming to an agreement on the decisions being presented
in relation to the COVAX ( COVID -19 Vaccine Global Access ) Facility structure and
governance and the COVAX AMC ( Advanced Market Commitment ).

1.3 Standing declarations of interest were tabled to the Board (Doc 01a in the Board
pack ).

1.4 It was noted that Item 2 would be discussed after Item 4 as per the Revised
Agenda share d with the Board in advance of the meeting.

------

3. Financial Forecast

3.1 David Sidwell, Audit and Finance Committee (AFC) Chair, presented this item,
informing the Board that the AFC had looked at a revised financial forecast for
2020 -2021 and r eviewed the assumptions underpinning the forecast .

3.2 He noted the forecast refle cts the outcome of the replenishment and implications
from COVID -19 including decisions taken by the Board in 2020 to support
countries through initiatives such as H ealth System Strengthening reprogramming,
UNICE F pre -financing and the rescheduling of vaccine campaigns. He further
noted the forecast will be updated as additional decisions are made by the Gavi
Board in relation to the COVAX Facility, COVAX AMC and any new Gavi 5.0
strategic investments as presently the forecast does not r eflect any amounts
related to these with exception of COVAX AMC and COVAX Facility administrative
costs which are being presented to the Gavi Board for consideration at this
meeting .

3.3 Mr Sidwell reported that the full impact of delayed vaccine introdu ctions and
campaigns remains uncertain but it is anticipated that additional expenditures will
be required to maintain and restore routine immunisation programmes.

3.4 Referring to an estimate of resources and expenditures , Mr Sidwell reported the
availa ble amount for strategic investments is US$ 368 million for 2016 -2020 and

Board -2020 -Mtg -6-Doc 00a




G avi Alliance Board Meeting
15 -17 December 2020
Virtual Meeting

Tuesday 15 December : 13.30 -16.00 Geneva Time Closed Session
Tuesday 15 December : 16.15 -18.30 Geneva Time
Wednesday 16 December : 14.00 -18. 15 Geneva Time
Thursday 17 December : 14.00 -18. 30 Geneva Time
Quor um: 14

Document list ? UPDATED

No. Document
00a Document list
00b Agenda
01a Declarations of interest
01b Minutes from 24 -25 June 2020
01c Minutes from 30 July 2020
01d Minutes from 29 -30 September 2020 (To follow)
01 e No Objection Consen t D ecisions
01f Consent Agenda
01g Consent Agenda: Gavi 5.0: Measurement Framewor k
01h Workplan
02a Financial Update, including forecast
02b Partners ? Engagement Framework & Secretariat Bud get 2021 -2022
03 Committee Chair and IFFIm Bo ard reports
04 CEO?s Re port
05 a Strategy , Programmes and Partnerships and calibration of Gavi 5.0
05b Accelerating efforts to reach zero -dose children and missed communities in Gavi 5.0
06 Risk Managemen t Update
07 Gavi ?s approach to engagem ent with f ormer and never -eligible Middle -Income
Countries (MICs)
08 COVAX Facility operationalisation and vaccine programme
09 AMC Resource Mobilisat ion
10 COVAX AMC Support to India
11 Review of decisions ? No pape r
12 Clos ing remarks ? No paper