In the Ternopil region 5 facts and 5 myths about international procurement

Two years ago the Verkhovna Rada adopted the law on public procurement of medicines through international organizations, which ordered the Ministry of health to delegate to these organizations the acquisition of a number of drugs. The justification of such step is proved by practice – involvement in international Affairs to procurement resulted in a saving of budgetary funds by purchasing medicines without corruption schemes, patients received more drugs for treatment. However, this time around the process of procurement of drugs, a lot of myths. Given the hard facts regarding the international procurement of drugs and refute the most common myths. FACTS The Ministry of health eliminated the corruption of the tenders. Tenders for the purchase of a number of medications centrally should purchase the health MINISTRY carried out an international organization that do not have a direct interest in the procurement. The MINISTRY of health now receives cheaper drugs, and the tenders already awarded to the company from 15 countries. Successful experience in implementing such reform in Ukraine has inspired the neighboring Moldova, which this year also decided to start procurement of medicines through international organizations. International organizations are buying meds cheaper. Currently, the international organization for MZ buy medicines at prices lower than in 2014, when procurement is conducted by the Ministry. Just for the procurement of 7 types of vaccines and antiretroviral drugs UNICEF has saved Ukraine $ 4 million from the budget of 2015 allocated to this program. Patients receive more drugs for free. The total number of purchased medicines through international organizations in 2015 has increased by almost 55%. Savings in the procurement of funds purchased additional drugs and vaccines. In 2016 for the procurement of medicines through international organizations allocated from the budget of 4 billion UAH. in 2017 – 5.9 billion UAH. Almost half of the drugs purchased from international manufacturers. 45% of drugs from international procurement of the Ministry of health receives directly from the producers. This means that Ukrainians receive quality products at market prices. The MINISTRY of health spends less resource to the procurement organization. Earlier, the MINISTRY of health slightly more than 60 working groups on procurement, and now she is the only one. The rest of the process involved international organizations. That is the professionals do it. Ukraine has gone another corrupt scheme, because the working groups on procurement often put to tender non-competitive conditions, which allowed to win “their” company. Myth 1. The purchase of medicines given to God knows who Organizations that engage in procurement, a well-known and have considerable experience in this field. The Ministry of health cooperates only with those organizations which are set out in the adopted by Parliament law. This is UNICEF, the United Nations development Programme and Crown Agents company. UNICEF, for example, works in all corners of the world, providing drugs to children from the countries of Western Europe, USA, Australia, Africa and Asia. UNDP operates in 170 countries, helping in their global and national development. Crown Agents operates in more than 100 countries and has 185 years of experience in international procurement. Myth 2. Drugs from the international procurement of lower quality Not true. All drugs purchased by international organizations to Ukraine, qualified by the world health organization. And, therefore, their quality is already proven. Besides “cheaper” in this case doesn't mean “less quality”. International purchases allowed to participate in tenders to foreign companies that offer competitive prices. So the MINISTRY is able to obtain quality products without paying. Moreover, eliminated corruption from the procurement process. Now allocated from the budget funds fully going to purchase drugs, and not into the pockets of corrupt officials. Myth 3. Through international procurement suffering Ukrainian pharmaceutical manufacturer International procurement motivate domestic producers to make products that meet international quality standards and prices. International organizations are buying the drugs from a producer who offers the best price for a particular drug. What matters is only the price and the quality of the drug and not the country of origin of the manufacturer. This corresponds to the competition law and provides effective use of taxpayers ' money allocated for the purchase of medicines. Myth 4. International organizations earn on the medicines big money International partners only receive funds for their work is 5% of the total value of the procurement. For the money international partner organizes the tender and finds for Ukraine the best offer for the price. So, 5% of the total amount is a lot of money, but such payment international organization saves the budget a much greater amount - hundreds of thousands of dollars. Therefore this payment is justified. Myth 5. International procurement opaque - MINISTRY of health hides treaties No, the MINISTRY does not hide the agreements with international organizations. According to the law, which regulates the public procurement of medicines through international procurement agencies, the MINISTRY of health should work “under the internal rules and procedures of such organizations.” And their internal rules provide that such contracts are working documents and may not be made public. This was reported in the Ternopil regional state administration.

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Source: http://uzinform.com.ua/

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