1. Procurement and Supply Management Policies
WHO/UNICEF Technical Briefing Seminar on
Essential Medicines Policies, October 2012
Sophie Logez
PSM Hub

2. Global Fund Grants Objective of the Global Fund
Financial Status
Proposals
Approved
Grants signed
US$
Money disbursed
Global Fund financing (US$), November 2012
19.7 billion
16.4 billion
12.1 billion
61%
Objective of the Global Fund
“making a “sustainable and significant” contribution
to the achievement of the Millennium Development Goals”

3. Global Fund Top 3 result indicators (2010)
Intervention
June 2012
HIV: People receiving antiretroviral treatment
3.6 m
TB: new cases of infectious tuberculosis detected and treated
9.3m
Malaria: Insecticide-treated nets distributed
270 m
Malaria treatment delivered
260 m
The Global Fund to Fight AIDS, Tuberculosis and Malaria was created in 2002 to dramatically increase resources to fight three of the world’s  most devastating diseases and to channel the money to areas of greatest need.
While the majority of Global Fund investments support treatment and prevention efforts in the fight against HIV/AIDS, it has emerged as the predominant funder of tuberculosis and malaria programs, making up two-third of international commitments for these diseases.

4. Global Fund Approved Proposals
By Disease Component (End 2011)
Slide author: Ange-Joël DJOMAN (PIE Unit), January Data to be updated every 6 months.
Source: Proposals data (Ombeni).
Notes:
All data correct to end of 2011 (Rounds 1-10).
100% = US$ 22.8 billion.
Percentages of total funds approved by the Board, including Phase 2, RCC & NSA.
Source: Global Fund Grant Data 4

5. Global Fund Approved Proposals
By Region (2002 to mid-2011)
Slide author: Ange-Joël DJOMAN (PIE Unit), January Data to be updated every 6 months.
Source: Proposals data (Ombeni).
- All data correct to end 2011 (Rounds 1-10).
- 100% = US$ 22.8 billion.
- Percentages of total funds approved by the Board, including Phase 2, Rolling Continuation Channel and National Strategy Applications (NSA).
- NSA is an approach that enables funding requests to the Global Fund in the form of a national strategy; creating an incentive for country stakeholders to develop robust national strategies, eliminate parallel planning efforts and contribute to improving harmonization among donors.
Source: Global Fund Grant Data 5

6. Distribution of funding
Ttt to be increased with new ARVs treatment guidlines
37% of funds for health products

7. Outline Global Fund principles on PSM
QA Policy for pharmaceutical products
Price & Quality Reporting
This is a good introduction to present the revised GF QA policy for PP

8. Policies and Principles for PSM
Principles and minimum standards “Operational principles for Good Pharmaceutical Procurement”
Build upon existing systems
PSM activities
Outlines what PRs need to comply with
Quality-assured products
Lowest possible price
National laws and international agreements
Transparent, fair and competitive procurement
This is essential that applicants read the Guide on Policies before preparing the proposal- the guide exist in four langages.
Beside, Guidelines for proposal round 8 And Round 8 frequently asked questions

9. QA Policy for Pharmaceutical Products (as of 2009)
Quality Criteria
For all products
Authorization for use in the recipient countries
For ARVs, anti-TB and anti-malarial products
WHO Prequalified or authorized by a Stringent Regulatory Authority; or
Recommended for use by an Expert Review Panel,
Only If <2 WHO PQed or SRA authorized products available
Clinical Criteria
Medicines listed in WHO or national or institutional Standard Treatment Guidelines
Require applicants/ recipients to provide justification for selection of unlisted products in one of the STGs
Monitoring Quality
Monitoring quality of products all along the supply chain
Systematic random quality control testing
Recipients report testing results to Global Fund + +

10. Monitoring product quality
1. Clinical Criteria
2. Quality Criteria
3. Monitoring Quality
Monitoring product quality
“The quality of FPPs procured with Global Fund grant funds must be monitored.”
“PRs to conduct systematic random testing, and report testing results to Global Fund”
Principles of quality monitoring:
Concerns all products (including WHO-prequalified and SRA- authorized products)
Monitoring done all along the supply chain
Systematic random quality control testing (following a plan - not all products / lots will be tested)

11. 1. Clinical Criteria 2. Quality Criteria 3. Monitoring Quality
at country level
“Guidance for Reinforcing and /or Establishing Pharmaceutical Quality Control Systems and Related Stock Management Activities in Countries Supported by the Global Fund “ :
support implementation of the Global Fund’s QA Policy.
provide technical guidance to recipients on quality control testing activities
Frequently Asked Questions

12. Quality monitoring at country level
1. Clinical Criteria
2. Quality Criteria
3. Monitoring Quality

13. Publication of QC Results

14. Partnerships in Quality Assurance
Close collaboration with WHO PQ
Expert advice
QA Policy implementation: ERP management
WHO Disease Programs: HIV, Malaria, TB
Collaboration/information sharing with other donors and suppliers, such as UNICEF, UNDP
Working toward policy harmonization with partners eg. GDF
Regular communication with manufacturers: annual meeting
Monitoring QA activities and publication of results

15. Make publicly available price and quality information
Transparency
Informed procurement decisions
Basis to develop demand forecasts
Monitor price and quality information
Price analysis report
Price trend, regional comparison
Purchase price report
QA Compliance
Analyze procurement information for policy purposes
Health Products reported:
ARVs
Antimalarial medicines
Tuberculosis medicines
Bednets
Condoms
Rapid Diagnostics Kits

16. Global Fund Financed Procurement of key products since 2009
From , more than US$ billion1 of antiretrovirals, long-lasting insecticidal nets, antimalarial medicines and anti-TB medicines were delivered to Global Fund Principal Recipients and reported to the PQR.
Product Category
Total Product Cost (USD)
Bednet
$863,800,266
Anti-Retroviral
$816,509,939
Anti-Malaria Medicine
$145,187,211
Diagnostic test
$135,067,022
Anti-TB Medicine
$124,169,159
Condom
$37,407,498
Grand Total
$2,122,141,095
1 As reported to the PQR on 02 April 2012

17. Use of PQR in Grant Lifecycle
Budgeting & Grant negotiation
Proposal development, TRP Review, PSM Plan Review
Grant Implementation
Monitoring of compliance with QA Policy
Review by PRs of prices achieved versus peers
Grant Performance Reviews
Benchmarking of prices achieved versus peers
Review of QA issues
Identification of value for money opportunities
Transparency