1. CONFIDENTIAL
Bridge Financing for
Global Health:
Maximizing Donor Aid through
Domestic Innovative Financing
Pledge Guarantee for Health Overview
Addis Ababa - November 2013

2. CONFIDENTIAL
F4D’s focus is to leverage innovative financing to bring about funding
efficiency in the product and service markets of international
development
• Bilateral/Multilateral Donors
Products
• Foundations
• Sovereign/National
• Private Sector
• Hybrids (SMOs)
Services
Funding
2

3. CONFIDENTIAL
In a resource constrained world, there is a need to recapture the value
we lose due to inefficiencies
Advocacy
Procurement Mobilization
T.A./Training
3

4. CONFIDENTIAL
PGH uses bridge financing to address cash flow problems in
development
Advocacy
Procurement Mobilization
T.A./Training
Commercial bank
Funding source
4
Donor funds arrive and pays bank
(e.g. Donor)
2
1
Commercial bank
supplies Letters of
Credit (and
payment) on behalf
of MoH
Guarantor
Guarantees 50% of
donor funding
3
1
MOH uses Letters of Credit
to purchase order,
manufacturer delivers
supplies
Manufacturer
(e.g. Pharmaceutical
company)
Ministry of Health / Civil Society
(PGH customer)
4

5. CONFIDENTIAL
PGH uses bridge financing to address cash flow problems in
development
Advocacy
Procurement Mobilization
T.A./Training
5

6. CONFIDENTIAL
PGH uses bridge financing to address cash flow problems in
development
Advocacy
Procurement Mobilization
Advisory
T.A./Training
Transactional
A Procurements
Without
Transactions
Nigeria
Comoros
Islands
Ethiopia
Zambia
B
Policy
Advancements
D
Senegal
C
Pricing
Discounts
Facilitated
Transactions
Ethiopia
Philippines
6

7. CONFIDENTIAL
PGH intends to promote knowledge transfers that will enable
sustained interventions
Advocacy
Procurement Mobilization
T.A./Training
7

8. CONFIDENTIAL
The PGH value proposition is already starting to see quick wins
Leverage private
capital to smooth
donor funding
flows
Reduce
business risk
for suppliers to
incentivize
investments in
increased
quality,
affordability
and access
Increase
procurements
that have
greater value
for money
baked in
Accelerated
Empowered
Efficient
Ability to rapidly issue
bridge funding while
waiting for donor
disbursement to avoid
stock-outs which can
have dangerous impacts
on both patients and the
community
Allow buyers to remove
inefficiencies in the
procurement process
that cause suppliers to
price in premiums (e.g.
better payment
certainty, pooled
procurement, etc)
Increase aid
effectiveness
With better control of the
procurement timing
recipients will be able to
avoid emergency
production and delivery
which are costly and
come at the expense of
additional beneficiaries
8

9. CONFIDENTIAL
PGH’s M&E methodology is routed in a theory of change driven on
delivering value for money in both Health and Financial systems
irrespective of deals
a)
Advocacy
Output:
Outcomes:
1a/b/c: $ saved, extra
product procured
(i.e. Comoros)
Health System
Value-for-Money
b) NonGuarantee Deals
Impact Indicators:
2a/b/c: Health/social impact
(deaths averted, CYP)
3a/b/c: Supply chain speed (time
to delivery, time to disbursement)
$ mobilized
(i.e. Philippines)
4a/b/c: Financial efficiency ($
mobilized per Guarantee $)
c) Guarantee
Deals
(i.e. Zambia, Ethiopia)
Financial System
Value-for-Money
5a/b/c: Financial scale
(Net $ mobilized)
11

10. CONFIDENTIAL
With the help of our partners we are well on our way
9