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Procurement and Supply Management Policies. WHO/UNICEF Technical Briefing Seminar on Essential Medicines Policies, November 2009 Sophie Logez Pharmaceutical Management Unit. Presentation Outline. Global Fund grants: portfolio update and results
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Procurement and Supply Management Policies WHO/UNICEF Technical Briefing Seminar on Essential Medicines Policies, November 2009 Sophie Logez Pharmaceutical Management Unit
Presentation Outline • Global Fund grants: portfolio update and results • Global Fund approach to pharmaceutical and health products management
Financing 678 grants in 140 countries (Nov. 09) Status of Global Fund Grants Objective of the Global Fund “making a “sustainable and significant” contribution to the achievement of the Millennium Development Goals”
Rapid scaling up of results Global Fund Top 3 result indicators (2009)
Regional DistributionRounds 1-8, (July 2009) Global Fund Grant Resources by Region 100% = US$ 15.9 billion Percentages of total funds approved by the Board, including Phase 2 & RCC OP/140709/2
Disease Components DistributionRounds 1-8, (July 2009) Global Fund Resources by Disease Component 100% = US$ 15.9 billion Percentages of total funds approved by the Board, including Phase 2 & RCC OP/140709/3
How are Grant Funds Used? Resources by Expenditure Component (July 2009) Estimates from Rounds 2-8 proposals 100% = $8.2 billion USD OP/140108/6
The Global Fund Approach Pharmaceutical and Health Product Management • Principles and minimum standards, not detailed procedures “Operational principles for Good Pharmaceutical Procurement” • Build upon existing systems • Principal Recipients responsible for all PSM activities
Products Pharmaceuticals Health products Health equipment Equipment Services Registration Selection Forecasting Procurement Transport Quality assurance/QC Storage Distribution Monitoring Pharmacovigilance What it can include Activities • Procurement costs • Quality Assurance costs • Distribution costs • Training • Technical Assistance • Capacity Building
Outline • Global Fund principles on PSM • QA Policy for pharmaceutical products (1 July 2009) • Price & Quality Reporting
Policies and Principles • Quality-assured products • Lowest possible price • National laws and international agreements • Transparent, fair and competitive procurement Guide outlines what PRs need to do
Selection Process of ARVs, Anti-TB or Antimalarial products 2 or more A or B products Available? No ERP recommended Product available? Yes No Yes • Notify the GF • Receive no objection • Testing by GF Lab GF request an ad hoc ERP committee to review eligible product Procure A or B Product Procure ERP recommended Product Product unavailability: Inability to supply sufficient quantity of product within not less 90 days of the requested delivery date
Policies Perspectives • Study on the QA status of medicines other than ARVs, anti-TB and antimalarial products • Develop QA requirements for such medicines • Study on the QA status of Diagnostics • Development of a QA Policy for IVDs by 2010
Policies and Initiatives Objectives • Significantly increase speed of grant implementation and grant performance • Reduce the burden on recipient by easing procurement bottlenecks in country • Coordination with partners. • MDR-TB treatment • Green Light Committee support services • Voluntary Pooled Procurement and Capacity Building Services • Launched in June 2009 • Affordable Medicine Facility for malaria (AMFm) • Approved in November 2008
It is mandatory, as a part of the Grant Agreement that PRs enter procurement and quality data for key health products in the PQR • Health Products to be reported: • ARVs • Antimalarial medicines • Tuberculosis medicines • Bednets • Condoms • Rapid Diagnostics Kits
Monitor Price Price Comparison Quality Quality Monitoring Market Information Delivery Conditions Verify Data How PQR Works? The Global Fund Principal Recipients General Public Principal Recipient Reports Partners Local Fund Agent
Objectives • Monitor procurement price and quality information on key health products procured with Global Fund funds: • Inform implementers on market conditions • Monitoring Pricing and supplier performance • Monitoring QA Policy compliance • Make publicly available price and quality information • Inform procurement decisions by countries • Basis for stakeholders to develop long-term demand forecasts • Analyze procurement information for various policy and decision-making purposes
Work Plan • More features and reports are available (October 09) • Price analysis report • Price trend • Purchase price report • PQR usage & data audit status • QA Compliance regional comparison • Data quality monitoring and follow-ups with PR • Further Improve functionality and speed
Planning Technical support PSM plan preparation Team work Capacity building as planned • Technical support to prepare the proposal: • PSM experts • Laboratory experts • Regulatory authorities • IPR experts TA as planned TA as planned Proposal + Attachment B Phase 1 Phase 2 Phase 2 review Grant signature Proposal approved Preparation