XIX International AIDS ConferenceJuly 22, 2012

Dr. El Hadj Sidi DahPSM Technical Officer

Grant Management Solutions

Voluntary Pooled Procurement: Country Perspective

Why VPP?

• Low capacity of the PR to procure and supply medicines and health products in a transparent and timely manner;

• Risk of misuse of funds intended for the supply of medicines and related products;

• Global Fund’s Additional Safeguards Policy in place

• Investigation by Global Fund’s OIG

What Do Countries Think of VPP?

• Complicated, not voluntary, not pooled, and more expensive than expected

• Lead time > 10 months• Concurrent capacity building not always

provided• Unclear who is the process leader

among the Global Fund, procurement agents, and PRs

Regular Supply Process

Signature of grant

October 2011/Q1 =

T0

Procurement process

November 2011/Q1 = T0

+ 1

Receipt of products

April 2012/ Q3 = T0 + 6

Distribution process to treatment

sitesMay 2012/ Q3 = T0 + 7

Dispensing drugs to

patients May- June 2012/Q3

= T0 + 8

Best-Case Scenario(in months)

6 months

First results

Q4

Supply Process through VPP

Signature

October 2011

Application to PSSNovembe

r 2011

Request submitted to

PSS (Quantification, technical specification

s, incoterms,....

..

Quote Price

sent to PSA and start of

procurement

process

Proforma sent back

to PR

PSA submits proforma to

PSS to receive

payment in advance

PSA confirms order with

suppliers and programs delivery

Sometimes more than 10 months

Results in Q1 Year 2

Why Does VPP Take So Long?

PRs may find these areas challenging:

• Quantification

• Developing technical specifications

• Validating PSM plans and resolving CPs

• Understanding how VPP works

• Communication (language)

• Lack of motivation (frustration)

(continued)

Why Does VPP Take So Long?

• Many actors: PSS, PSA, PR, SR, suppliers, carriers, distributors…

• Inherent design of the process • Lack of commitment of all actors on the

ground (pharmacists, warehousing personnel, registration, tax authorities, PSM units, SRs)

• Lack of fitting procedures for VPP

(continued)

Why Does VPP Take So Long?

• Weaknesses in the country’s pharmaceutical system (regulations, registration procedures, tax exemption procedures…)

• Storage and distribution challenges (norms and capacity)

• Delays in distribution planning for products before they are received

Recommendations

1. Simplify processes2. Strengthen pharmaceutical systems3. Develop capacities4. Plan receiving and distribution of

products5. Continually assess how VPP works at

country level and of how it can be improved