More patients treated as UNDP reports 98% of procured medicines delivered

Oct 12, 2016

United Nations Development Programme (UNDP) and the Ministry of Health of Ukraine (MOH) presented the one-year review of UNDP emergency medicine procurement: as of October 12th, 2016, the volume of drugs shipped to Ukraine reaches 98% of the total amount contracted, with budget savings and leftovers of over USD 4 million, allowing for additional procurement of life-saving treatments.

Kiev – October 12, 2016: MOH, UNDP, UNICEF and Crown Agents partnered on emergency medicines procurement, as part of a broader healthcare system reform, since late 2015. The partnership started with signing agreements of up to USD 39 million for UNDP to procure medicines under 8 national medicine programs: TB diagnosis, TB treatment, HIV diagnosis, child and adult viral hepatitis B and C, children hemophilia, children orphan diseases, and immunization. The number of Ukrainian patients registered within the hepatitis, TB and HIV health programs alone exceeds 300,000 across the country.

As a result, UNDP’s transparent, open and competitive tender processes have brought about fair competition and increased the cost-effectiveness of medicine procurement in Ukraine, by strictly applying a “best cost for value” principle. Ukrainian and international manufacturers or dispatchers were all given equal opportunities to submit bids, resulting in many more actual manufacturers participating in the tender process compared to previous years.

All tender results (supplier names, contract amounts and quantity of goods), delivery progress and remaining funds are publicly available on UNDP Ukraine’s website, and updated on a regular basis. Medical deliveries started on 1 April 2016, and the volume of medicines shipped to Ukraine to date has reached 98% in dollar terms (Table 1 below).

In total, UNDP procured 166 medicines and medical products, manufactured in 16 countries including Ukraine, with some USD 4 million saved after deducting logistics costs for storage and delivery performed by the two State enterprises (1.35% and 1.5% respectively), and UNDP 5% administration fee as per the Cost Sharing Agreement signed with the Ministry of Health.

Following MOH instructions, with the savings UNDP has already purchased additional 5-in-1 combination vaccine against diphtheria, tetanus, pertussis, polio and Haemophilus influenza type b, as well as medicines required under the orphan diseases program, whose delivery to Ukraine is expected within weeks (Table 2 below). 

Also on MOH request, with these savings UNDP is now striving to procure more medicines under other medicine programs before the end of the project’s 1-year lifecycle. Should satisfying conditions not be found for the manufacture and delivery of these additional medicines, the remaining funds will be returned as per MOH instructions.

Despite a number of logistical and legal challenges that UNDP and other procuring organizations have faced during this first procurement year, lessons learned and cooperation between UNDP, MOH, patients’ community and of many other partners has allowed to efficiently supply life-saving medicines and prevent treatment interruption in Ukraine.

HE the Minister of Health a.i. Ulana Suprun mentioned: “In 2015 we made great steps towards transparent medicines procurement in Ukraine. UNDP helped us to conduct efficient procurement of medicines for 2015 state budget funds – Ukrainian patients received high-quality and affordable treatment. With this procurement, we managed to supply clinics with necessary medicines and tests, and to provide patients with treatment necessary for their health. Yesterday we signed a new contract for 2016 state budget funds with UNDP, and we look forward to continue our fruitful cooperation in procuring medicines and health products.”

UNDP Country Director Janthomas Hiemstra commented: “Turning to UNDP to assist in emergency medicine procurement was a very bold and smart move from the Government and the Ministry of Health. The breadth of our experience, as the United Nations Agency with the largest procurement capacity, has delivered results that speak for themselves. We are looking forward to pursue this fruitful cooperation into 2017 and to further support the MoH in the broader reform of Ukraine’s healthcare, notably through the establishment of a fully functioning Ukrainian medicine procurement system.”

Contact information

Yevgeniy.zelenko@undp.org

Tel.: +38 044 253-9363, ext.141

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