Alliance welcomes new International Drug Purchasing Facility
05 September 2006
A new International Drug Purchasing Facility, launched on 19 September 2006, can play a key role in efforts to achieve universal access to treatment by 2010, according to the Alliance. The new, innovative financing mechanism, developed by Brazil, Chile, France, Norway and the UK (the UNITAID Group), will use revenues from air passenger duty to establish new, stable and continuous sources of funding to respond to HIV, tuberculosis and malaria, and will help support the scaled-up sustainable response to global epidemics.
Welcoming the launch, Alliance senior policy advisor Anton Kerr said the initiative would also aim to induce significant reductions in the prices of essential medicines for poor countries and hence facilitate access to treatment.
How will the International Drug Purchasing Facility work?
The UNITAID Group will establish an international air ticket levy that will support the International Drug Purchasing Facility. Initiated by Brazilian President Luiz Inácio Lula Da Silva and French President Jacques Chirac and adopted at the Paris Conference on Innovative Financing for Development on 28 February and 1 March 2006, this levy is set to be implemented in 14 countries (Brazil, Chile, Congo, Cyprus, Gabon, Ivory Coast, France, Jordan, Luxembourg, Madagascar, Mauritius, Nicaragua, Norway and the United Kingdom). It will be supported by multi-year budgetary assistance from other countries.
Why is the International Drug Purchasing Facility important?
Both long term predictable finance and access to affordable medicines are key to achieving universal access to treatment by 2010 as endorsed by the United Nations Millennium + 5 Summit in September 2005 and reaffirmed at the UNGASS +5 summit in July 2006.
The new source of funding will be used to drive down the cost of essential medicines and commodities needed to fight the three diseases in resource poor counties where the brunt of the three epidemics are felt. The key beneficiaries and implementing partners of the initiative will be recipients of funds from the Global Fund to fight AIDS, Tuberculosis and Malaria. Currently, 45% of Global Fund money goes on the high cost of medicines and commodities needed to deliver an effective response to the epidemics.
As well as the cost of medicines, the logistical, bureaucratic and legal complexities of international drug procurement are a major barrier to reaching universal access. For example, the implementation of the average Global Fund country programme is delayed by up to 18 months due to the difficulties in effectively and reliably procuring essential medicines. The International Drug Purchasing Facility initiative aims to address the key international barriers that hamper the timely and cost effective procurement and delivery of medicines to those most in need.
Working in partnership
The UNITAID Group are committed to working in partnership with key institutions and organisations involved in the response to the epidemics. These include the World Health Organization; UNAIDS; the Global Fund to Fight AIDS, Tuberculosis and Malaria; UNICEF; and the Clinton Foundation. There is also a commendable commitment to openness and transparency in the development and operation of the International Drug Purchasing Facility. Two of the nine members of the new Board of UNITAID/International Drug Purchasing Facility will represent the communities of people affected by the diseases as well as the NGOs engaged in addressing the pandemics.
For more information, visit the UNITAID website
Contact: Anton Kerr, Senior Policy Advisor – Civil Society Development, International HIV/AIDS Alliance
