A world fund set up to head the fight against Aids, tuberculosis and malaria made its largest ever award on Friday of $866 million for 60 countries fighting the killer diseases, but then warned it was running out of cash.

The Global Fund, launched a year ago at the urging of UN Secretary-General Kofi Annan, said 60 per cent of the money would go to buying drugs and financing Aids prevention campaigns, mainly in Africa.

So far the Fund, which works with non-governmental organisations and charities as well as governments, has agreed to finance some $1.5 billion of schemes for tackling the three scourges which kill some six million people a year.

But with these projects entitled to additional financing if they prove successful, the full $2.2 billion with which the Fund started out has been committed.

"Before it can approve a third round of grants in October 2003, the Global Fund will require new contributions," the Geneva-based organisation said in a statement.

According to executive director Richard Feachem, the Fund needs a further $6.3 billion during 2003 and 2004, but so far only some 20 per cent of that has been pledged by donors.

Earlier last week, US President George W. Bush announced a $10 billion initiative to boost the fight against Aids in what US officials called the largest amount ever, American or otherwise, devoted to helping sufferers in African and Caribbean countries.

But only $1 billion would go to the Global Fund over two years, leading some health activists to question the US administration's continued backing for what many regard as the best vehicle for tackling the epidemics.

But Washington has rejected any suggestion of waning support and, underlining its commitment, lobbied hard and successfully to have Health Secretary Tommy Thompson elected to the rotating one-year chairmanship of the Fund board this week.

Together with the $630 million granted in the first round of awards last year, the second grant should ensure a sixfold increase to some 500,000 in the number of Aids sufferers with access to antiretroviral treatment, the Fund said. (Reuters)

But that is only a small percentage of the more than four million Africans living with the disease. Worldwide, some 42 million people are infected with the Aids-causing HIV virus, and 70 percent of them live in sub-Saharan Africa.

Ethiopia received the largest single award, with $93.3 million over two years to combat Aids and malaria. Mozambique will get $54 million and Namibia $26.1 million to support 150,000 orphans and children affected by HIV.

In Asia, the largest grant went to India where health experts have warned an epidemic as devastating as that of southern Africa is in the making.

It received $38.8 million over two years for tuberculosis and Aids, with the latter focusing on campaigns of prevention and care for pregnant women.