The World Bank Board approved a new fund for pandemic prevention, preparedness and response (PPR)

The devastating human, economic and social cost of COVID-19 has highlighted the urgent need for coordinated action to build stronger health systems and mobilize additional resources for pandemic prevention, preparedness and response (PPR).

The World Bank Board of Executive Directors today approved the establishment of a Financial Intermediary Fund (FIF) that will finance key investments to strengthen pandemic PPR capacity at the national, regional and global levels, with a focus on low- and middle-income countries. The fund will bring additional, dedicated resources to PPR, encourage countries to increase investment, improve coordination among partners and serve as a platform for advocacy. The FIF will complement funding and technical support provided by the World Bank, leverage WHO’s strong technical expertise, and engage other key organizations.

Developed with the leadership of the United States, Italy and Indonesia as part of their G20 presidencies, and with broad support from the G20 and beyond, more than $1 billion in financial commitments have already been announced for the FIF, including contributions from the United States, the European Union, Indonesia, Germany, the United Kingdom, Singapore, Gates Foundation and Wellcome Trust.

“I am pleased with the broad support of our shareholders for the new World Bank Financial Intermediation Fund,” President of the World Bank Group, David Malpass He said. “The World Bank is the largest provider of PPR financing with active operations in over 100 developing countries to strengthen their health systems. FIF will provide additional, long-term funding to complement the work of existing institutions in supporting low- and middle-income countries and regions to prepare for the next pandemic.”

“Access to funding for pandemic prevention and preparedness is critical. COVID-19 has exposed major gaps in preparedness capacity, which the Financial Intermediaries Fund can address in a coherent manner, as part of the global architecture for preparedness and response to health emergencies,” said WHO Director-General Dr. Tedros Adhanom Ghebreyesus. “WHO will play a central role in FIF, providing technical leadership for its work in close collaboration with the World Bank to realize this ambitious vision.”

FIF aims to provide funding to address critical gaps in pandemic PPR to strengthen country capacity in areas such as disease surveillance, laboratory systems, health workforce, emergency communication and management, and community engagement. It can also help address gaps in regional and global capacity building, for example by supporting data sharing, regulatory alignment and capacity for coordinated development, procurement, distribution and deployment of countermeasures and essential medical supplies.

In the coming weeks, the Bank and WHO will work closely with donors and other partners to develop the detailed scope and design of the FIF. The ongoing discussions will be based on extensive input obtained through stakeholder engagement (CONNECTION). The goal is to launch FIF in the fall of 2022.

Drawing on its financial and legal platform, program management and operational expertise, and experience in managing FIFs, the World Bank will serve as the FIF’s trustee and host the Secretariat, which will consist of the Bank and WHO. Drawing on its technical expertise, WHO will also lead the support and coordination of the work of the FIF Technical Advisory Committee. Implementing entities for FIF-financed projects, in addition to the World Bank Group, are expected to include the WHO, other multilateral development banks and United Nations agencies, as well as other organizations. The FIF will build on the existing global health architecture for PPR, within the context of the International Health Regulations (IHR 2005) and associated monitoring mechanisms, with WHO’s central technical role.

The key principles of the FIF will be to complement the work of existing institutions that provide international financing for PPR, drawing on their comparative advantages and catalyzing financing from private, philanthropic and bilateral sources. Furthermore, the FIF is expected to encourage countries to invest more in PPR, serve as an integrator of PPR efforts, and have the flexibility to work through various existing institutions and adapt over time as needs and the institutional environment evolve. The FIF structure will combine inclusiveness and agility and will operate with high standards of transparency and accountability.