In a ground-breaking approach to procuring tools to fight AIDS, tuberculosis and malaria, the Global Fund and partners have established a new framework to systematically organize the purchase of massive amounts of mosquito nets, anti HIV drugs and other useful products that will improve delivery and make significant savings
In a first step, the
Global Fund will sign contracts with 7 manufacturers for the largest-ever bulk
purchase of mosquito nets treated with insecticide, with immediate costs
savings of USD51.2 million, and projected overall savings of USD140 million for
the Global Fund over two years.
The initial contracts,
for 90 million mosquito nets, will be part of an overall purchase of 190
million nets by partners in 2014.
The new framework
reduces base prices across the board, for all partners, and also reduces
bottlenecks and shortages in countries where malaria threatens the lives of
millions of children under the age of 5.
By using large-scale
purchasing power, the new framework provides tremendous value for money. It is
expected to lead to greater savings for all partners, and that can translate
into even greater impact against malaria.
"We can defeat
malaria, if we all work together," said Mark Dybul, Executive Director of
the Global Fund. "This kind of collaboration across sectors, between
partners and manufacturers, is essential to controlling malaria and sharply
reducing the number of children who die from it each year. And it's good
business, too."
The new framework
emerged from a special partnership launched in May 2013 between the Global
Fund, the UK's Department for International Development, the U.S. President's
Malaria Initiative and UNICEF, who collectively represent about 87 percent of
the purchases of insecticide-treated nets.
Other partners also
participated, including the Clinton Health Access Initiative (CHAI), Roll Back
Malaria Partnership and the office of Raymond G. Chambers, the UN Secretary-General's
Special Envoy for Financing the Health MDGs and for Malaria.
Christopher Game, Chief
Procurement Officer of the Global Fund, is directing a more proactive approach
to sourcing and procurement, which accounted for roughly USD2 billion of $3
billion in grant expenditures by the Global Fund last year.
He said that long-term
contracts in the new framework improve visibility, production, capacity
planning, and competitive pricing.
The initiative will
assist developing countries such as Tanzania, in which in a recent years has
shown huge interest of combating HIV/Aids, tuberculosis and malaria across the
country.
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