Joint financing is a loan granted to a debtor or project by several banks. The joint funding consists of two types: the new Sustainable Development Performance Fund (SDG PF), which succeeds MDG PF, is managed by FMoH. As part of the National Plan for the Health Sector Transformation Plan (HSTP), specific grants are being provided to underfunded priority sectors to improve the quality and equity of health services across the country. Health Minister Dr Kesetebirhan Admassu praised the contributions of partners to Ethiopia`s success in improving the health of its people. “Without the WCO Performance Fund, we would not have been able to do so,” said the Minister. Ato Ahmed Shide, Minister of State for Finance and Economic Development (MOFED), thanked development partners and reaffirmed MOFED`s commitment to continue to strengthen Ethiopia`s health sector. — Syndicated loans: This is joint financing by several banks or financial institutions for the same debtor or project with an identical credit program and the same credit contract. Each union loan hires its agent and security guard. — Club Deal: This is a joint financing by more than one bank or financial institution, in which each debtor may have a different credit program and a separate credit contract from the other, but has the same collateral binding Agreement and is strengthened by a guarantee-sharing agreement. The new health funding commitment was signed in the presence of Ethiopian Health Minister Kesetebirhan Admasu; Ato Ahmed Shide, Minister of State for Finance and Economic Development of Ethiopia; Seén Sherlock, Minister of State for Development, Trade Promotion and North-South Cooperation of Ireland; as well as ambassadors, agency heads and other dignitaries from the UK Department for International Development, the European Union, Italian Cooperation, the Kingdom of the Netherlands, WHO, UNFPA, UNICEF and the World Bank. Ethiopia was one of the first countries to sign a national pact of the International Partnership for Health (IHP) in 2008 to improve the effectiveness of aid in the health sector. A year later, the government signed the first JFA with a number of IHP partners. The simplified funding mechanism, the MDG Performance Fund (WCO PF), has been a major success story for all stakeholders in the health sector and has contributed more resources to underfunded health programs.
On 15 July 2015, the Ethiopian Federal Ministry of Health (FMoH) and its development partners signed a Joint Financial Agreement (JFA) to allocate funds to a common health funding mechanism. The signing ceremony took place on the sidelines of the Third Conference on Financing for Development (FFD3) in Addis Ababa. “The revised joint financial agreement provides a unique opportunity to take advantage of the excellent cooperation between the Federal Ministry of Health and health partners in Ethiopia beyond the Millennium Development Goals and to advance Ethiopia`s ambitious health agenda,” said Dr Pierre M`Pelebou, WHO Representative in Ethiopia, on behalf of all UN organizations – UNICEF , UNFPA, World Bank and WHO – and representing the Population and Nutrition Group (HPN), which WHO chairs jointly with Spanish development cooperation.