New tender for bednets produces projected savings of $93 million over two years
As a result of a new tender for insecticide-treated mosquito nets, The Global Fund projects that it will achieve savings of $93 million over the next two years. The Global Fund expects to make $350 million in mosquito net purchases in that time period through its pooled procurement mechanism.
The tender resulted in the selection of 10 suppliers. By signing an agreement with these suppliers, the Fund has achieved a 38% reduction in the cost of the nets compared to the previous tender in late 2013.
This information was contained in a news release issued by the Fund.
The agreement includes volume commitments from The Global Fund and performance contracts from the suppliers. According to the news release, the agreement creates a level of certainty for suppliers, allowing them greater visibility and planning time to manufacture and deliver nets. The $93 million in projected savings is equivalent to about 40 million additional nets.
Christopher Game, Chief Procurement Officer at The Global Fund, said: “We worked closely with partners to strike the balance between achieving cost savings, promoting sustainable supply, and recognizing manufacturer investment in the development of new products to fight malaria.”
The agreement is geared to purchase nets from multiple suppliers, reducing risk and encouraging local production, which reduces transport costs. About one-fifth of the nets to be procured will be manufactured in Africa. For the first time, the nets will be color-coded, allowing their durability to be tested at six-month intervals. The data collected from this research creates the possibility for future product innovation, the Fund said.