COVAX and the World Bank have devised a new mechanism to accelerate COVID-19 vaccine supply for developing economies building on Gavi’s newly designed Advance Market Commitment (AMC) cost-sharing arrangement.
This new arrangement will allow AMC countries to purchase doses beyond the fully donor-subsidized doses they are already receiving from COVAX.
Accordingly, COVAX will be entitled to make advance purchases from vaccine manufacturers based on aggregated demand across countries. This will be done using financing from the World Bank and other multilateral development banks.
Furthermore, this will ensure greater transparency in vaccine acquisition, as participating developing countries will be privy to available vaccines, quantities available, and future delivery schedules. Thus, enabling them to secure doses earlier, prepare and implement vaccination plans more effectively.
“This important and timely financing mechanism, made possible now by the World Bank and Gavi teaming up on the AMC cost-sharing arrangement, will allow COVAX to unlock additional doses for low- and middle-income countries,” Dr. Seth Berkley, CEO, Gavi, the Vaccine Alliance indicated.
“As we move beyond initial targets and work to support countries’ efforts to protect increasingly large portions of their populations, World Bank financing will help us advance further towards our goal of bringing COVID-19 under control.”
Dr. Seth Berkley, CEO, Gavi, the Vaccine Alliance
Furthermore, this mechanism works by leveraging on COVAX’s ability to negotiate advance purchase agreements with vaccine manufacturers as well as the World Bank’s ability to provide predictable financing to countries for vaccine purchase, deployment and broader health systems. Therefore risks and uncertainties that clouded country demand and financing ability will be no more.
Benefits of the new mechanism to developing economies
The World Bank’s President, Mr. David Malpass also remarked that:
“Accessing vaccines remains the single greatest challenge that developing countries face in protecting their people from the health, social, and economic impacts of the COVID-19 pandemic.
“This mechanism will enable new supplies and allow countries to speed up the purchase of vaccines. It will also provide transparency about vaccine availability, prices, and delivery schedules. This is crucial information as governments implement their vaccination plans.”
David Malpass, World Bank’s President
Additionally, countries with approved World Bank vaccine projects that confirm the purchase of additional doses through COVAX will agree with COVAX on the number of doses of a specific vaccine including related delivery windows.
Meanwhile, the cost-sharing arrangement for AMC countries involves 92 low- and middle-income countries. Under the arrangement, COVAX plans to make available of up to 430 million additional doses, or enough to fully vaccinate 250 million people, for delivery between late 2021 and mid-2022.
Therefore, it is anticipated that there will be several supply offerings where countries will have the opportunity to select and commit to procuring specific vaccines that align with their preferences.
COVAX is co-led by the Coalition for Epidemic Preparedness Innovations (CEPI), Gavi, the Vaccine Alliance and the World Health Organization (WHO).
Also, the World Bank and COVAX will work in partnership with UNICEF and the PAHO Revolving Fund as key implementing partners. This will aim at ensuring safe vaccine delivery and supply of materials such as syringes, safety boxes and other items essential for vaccination campaigns.
With the spread of the delta variant resurrecting new fears across the globe, vaccine equity is highly required. Without successfully getting all populations across the world vaccinated, the fight against the COVID-19 pandemic will not be won.
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