Addressing The Supply Gap Regional Meeting to Enhance RHCS in Latin America and The Caribbean

1. Addressing The Supply Gap Regional Meeting to Enhance RHCS in Latin America and The Caribbean 24 Feb 2010 David Smith Chief Procurement Services Branch Copenhagen

2. AGENDA • Review Supply Base for Reproductive Health Commodities • Major Issues Affecting Efficient Procurement of Quality RHC’s • Access RH • Bridge Mechanism for Financing RHC Supply • Pledge Guarantee for Health (PGH)

3. RH Supply Base • Condoms • Male • Female • IUD’s • Injectables • Oral Contraceptives • Low Dose OC’s • Emergency Contraception

4. RH Supply Base cont’d • Implants • Jadelle, Implanon and Sinoplant • Pharmaceuticals • UNFPA LTA’s • Other Agencies LTA’s (UNICEF) • Medical Equipment • Maternal and Reproductive Health • Others inc Hospital Furniture

5. Major Issues • Quality Assurance • WHO Pre Qualification • Latin American Standards • Pre Shipment Testing and Inspection • In Country Testing Protocols and Capacity • Storage and Shipment • Receipt and Inspection • Medical Equipment

6. Major Issues • Lead Times • Manufacturing and Testing • Shipping and Customs Clearance • IPSAS • Lead Time Calculator • https://portal.myunfpa.org/web/psb

7. Lead Times

8. Payment • Problem UNFPA’s Financial Regulations and Rules Stipulate 100% Payment in Advance. • Solutions • Bridge Financing Mechanism • Pledge Guarantee for Health • WB Letter of Credit

9. Vision AccessRH offers: Affordable, high quality public sector RH commodities, improved delivery times to meet client needs, and provides contraceptive order and shipment information for a range of users

10. AccessRH Key Features • Managed inventory of select standard product(s), stocked by manufacturer on UNFPA’s behalf • Demand planning and inventory management functions added to PSB portfolio • Result: • Reduced lead times for these products • Better information for clients, PSB and suppliers • Reduced volatility in orders to suppliers • No need for new contracting modality

11. Key Features(cont’d) • With $5M - $7M, year 1, could start with standard male condoms • Years 2 and 3: Add standard products, building on success • Resources required from donor community to create a revolving fund for commodities • Cost Reductions – Modest for UNFPA, Significant for many third party cutomers.

12. Benefits • Success depends on demand planning and management of inventory • Builds on GCCP experience • Addresses procurement-related obstacle(s) to contraceptive supplies availability We will get the product out faster • Better PSB service to the country • Information management and visibility

13. Benefits (cont’d) Demonstrates UNFPA’s Mandate • Helps build country capacity for the longer term • We can give better service

14. Funding Requirements: Operations

15. Bridge Financing Mechanism • Bridge Financing will come out of the balance in the fund for Procurement Services. • Bridge financing will be used to initiate the third party procurement process in advance of receipt of 100 per cent of the funds required when necessary. • Bridge Financing will only be provided where there is an agreement between the beneficiary government and UNFPA. • Before Bridge Financing is released, the Country Office will obtain confirmation that the expenditure is in the budget of the Government. • Each transaction will not exceed 30% of the available resources subject to a maximum of $600,000. • In case there is need to exceed the 30% limit as above, each proposal would be considered on its merits by Director, DMS and Chief, Procurement Services Branch.

16. Pledge Guarantee for Health (PGH) • The Pledge Guarantee for Health is a financial product that enables aid recipients to access credit for health commodity procurement. • Available to governments, NGO’s & multilaterals • Managed by UN Foundation (UNF) • Kevin Starace [kstarace@unfoundation.org]