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

As a result, the World Bank’s Board of Executive Directors on Friday approved the establishment of an intermediary financial fund (FIF) that will finance critical investments to strengthen pandemic PPR capacities at national, regional, and global levels, with a focus on low- and middle-income countries.

 The Bank in a statement says the fund will bring additional, dedicated resources for PPR, incentivize countries to increase investments, enhance coordination among partners, and serve as a platform for advocacy.

 The FIF will complement the financing and technical support provided by the World Bank, leverage the strong technical expertise of WHO, and engage other key organizations.

Developed with leadership from the United States, and from Italy, and Indonesia as part of their G20 Presidencies, and with broad support from the G20 and beyond, over $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, the Gates Foundation and the Welcome Trust.

“I’m pleased by the broad support from our shareholders for a new Financial Intermediary Fund at the World Bank,” World Bank Group President David Malpass said.

“The World Bank is the largest provider of financing for PPR with active operations in over 100 developing countries to strengthen their health systems. The 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 financing for pandemic prevention and preparedness is crucial. COVID-19 has exposed major gaps in preparedness capacities, which the Financial Intermediary Fund can address in a coherent manner, as part of the global architecture for health emergency preparedness and response,” said WHO Director-General Dr. Tedros Adhanom Ghebreyesus.

“WHO will play a central role in the FIF, providing technical leadership for its work in close collaboration with the World Bank to realize this ambitious vision.” He added.