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Greening Health Services:
  Procurement and Supply Chain

                        Dr. Christoph Hamelmann
       UNDP ECIS Practice Leader HIV, Health and Development, BRC



Resident Representatives and Country Directors Meeting: Global Fund Partnership
                            Dubai, January 10, 2012
Profile Summary Linkedin



“I like this quote: ‘Let me state the goal clearly: No
policy should be promulgated, no program initiated, no
alliance sealed, no purchase made, no machine
designed or built, no land use permitted, no product
introduced, no law passed, no politician elected unless
the action is a step forward to reduction and reversal of
the effect of greenhouse gases.’ Gary Braasch”
UNDP Environmental Procurement Guide


      Key environmental              Management tasks for
           challenges                     procurement
•   emission of greenhouse      •   consumption of raw
    gases                           materials and energy
•   emission of hazardous       •   chemicals and radiation in
    chemicals and radiation         products
•   overconsumption and         •   polluting emissions
    waste                       •   waste
•   depletion of ozone layer                   Over the
•   reduction of biodiversity             WHOLE LIFE CYCLE
                                       of the product / service
What does it have to do with us? (1)


                       Example: Health sector ECIS region
• accounts for 7.5 % of GDP
• technology intensive with significant consumption of
  resources, associated with environmental pollution and
  degradation
• accounts for an estimated 4.2 % of greenhouse gases (GHG) in
  the ECIS region
• up to 25 % of these GHG can be reduced within short-
  term, more through long-term measures
• reductions have also direct positive impact on life-years saved
Ministerial European Environment and Health Task Force Meeting, Bled / Slovenia 2011
What does it have to do with us? (2)

                                        GF Partnership: Procurements in US $

 Description                   2008                 2009                   2010              2011

 Pharmaceuticals              36,131,584              40,730,863             50,343,211      64,318,230

 Health products
 (non-pharma-                 22,664,462              36,319,625             69,921,736      72,303,829
 ceuticals)

 Civil works                     NA                    6,490,317                   218,144    7,095,562


 Other services                  NA                    4,573,245               2,431,624      2,601,420


 Total:                    58,796,046             88,114,050 122,914,715 146,319,041

Volker Welter, Sviatlana Kavaliova, Global Fund Partnership, PSO/BOM, Copenhagen
Procurement Categories Overview

 Pharma-                        Other health
                                                              Civil works Other services
 ceuticals                       products
                                diagnostic reagents
      HIV medicines                                          facility renovations transport/distribution
                                    & supplies


   malaria medicines              clinical supplies          other renovations        warehousing


                                                                   hospital
      TB medicines                   equipment                                          cleaning
                                                                 construction

                                                                  laboratory
       OI medicines                    bed nets                                        QC testing
                                                                 construction

                                                                  warehouse
           others                    insecticides                                        rentals
                                                                 construction

Volker Welter, Sviatlana Kavaliova, Global Fund Partnership, PSO/BOM, Copenhagen
Market power
Bidding Process
      for Products and Services


•   TOR of proposed contracts
•   environmental specifications
•   selection criteria for bidders
•   contract criteria for bidders
•   contract performance clauses
Influencing Use and Waste



• mainly on country level
• within our own UNDP operations
• within operations of our sub-
  recipients
First Objectives



• identify high volume – high impact
  products/services, bidding/use process
• prioritize by feasibility
• develop project proposal for funding
• engage in advocacy and policy review
Start-up Team

• Volker Welter, Senior Advisor, PSO/POM
• Christoph Hamelmann, Practice Leader
  HHD/BRC
• Elaine Blair, Chief, Regional Advisory
  Committee on Procurement, BRC
• Tom Twinning-Ward, Practice Leader (a.i.)
  Global Environmental Facility, BRC
Economic Commission for Europe
  Report Regional Preparatory Meeting

              Public procurement
47. Sustainable public procurement was supported as a
first critical step to further the green economy at the
national as well as the sub-national level. Concrete
progress was proposed in the form of sustainable public
procurement targets that could be met by an increasing
number of countries over the years.

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Greening Health Services - Procurement and Supply Chain

  • 1. Greening Health Services: Procurement and Supply Chain Dr. Christoph Hamelmann UNDP ECIS Practice Leader HIV, Health and Development, BRC Resident Representatives and Country Directors Meeting: Global Fund Partnership Dubai, January 10, 2012
  • 2. Profile Summary Linkedin “I like this quote: ‘Let me state the goal clearly: No policy should be promulgated, no program initiated, no alliance sealed, no purchase made, no machine designed or built, no land use permitted, no product introduced, no law passed, no politician elected unless the action is a step forward to reduction and reversal of the effect of greenhouse gases.’ Gary Braasch”
  • 3. UNDP Environmental Procurement Guide Key environmental Management tasks for challenges procurement • emission of greenhouse • consumption of raw gases materials and energy • emission of hazardous • chemicals and radiation in chemicals and radiation products • overconsumption and • polluting emissions waste • waste • depletion of ozone layer Over the • reduction of biodiversity WHOLE LIFE CYCLE of the product / service
  • 4. What does it have to do with us? (1) Example: Health sector ECIS region • accounts for 7.5 % of GDP • technology intensive with significant consumption of resources, associated with environmental pollution and degradation • accounts for an estimated 4.2 % of greenhouse gases (GHG) in the ECIS region • up to 25 % of these GHG can be reduced within short- term, more through long-term measures • reductions have also direct positive impact on life-years saved Ministerial European Environment and Health Task Force Meeting, Bled / Slovenia 2011
  • 5. What does it have to do with us? (2) GF Partnership: Procurements in US $ Description 2008 2009 2010 2011 Pharmaceuticals 36,131,584 40,730,863 50,343,211 64,318,230 Health products (non-pharma- 22,664,462 36,319,625 69,921,736 72,303,829 ceuticals) Civil works NA 6,490,317 218,144 7,095,562 Other services NA 4,573,245 2,431,624 2,601,420 Total: 58,796,046 88,114,050 122,914,715 146,319,041 Volker Welter, Sviatlana Kavaliova, Global Fund Partnership, PSO/BOM, Copenhagen
  • 6. Procurement Categories Overview Pharma- Other health Civil works Other services ceuticals products diagnostic reagents HIV medicines facility renovations transport/distribution & supplies malaria medicines clinical supplies other renovations warehousing hospital TB medicines equipment cleaning construction laboratory OI medicines bed nets QC testing construction warehouse others insecticides rentals construction Volker Welter, Sviatlana Kavaliova, Global Fund Partnership, PSO/BOM, Copenhagen
  • 8. Bidding Process for Products and Services • TOR of proposed contracts • environmental specifications • selection criteria for bidders • contract criteria for bidders • contract performance clauses
  • 9. Influencing Use and Waste • mainly on country level • within our own UNDP operations • within operations of our sub- recipients
  • 10. First Objectives • identify high volume – high impact products/services, bidding/use process • prioritize by feasibility • develop project proposal for funding • engage in advocacy and policy review
  • 11. Start-up Team • Volker Welter, Senior Advisor, PSO/POM • Christoph Hamelmann, Practice Leader HHD/BRC • Elaine Blair, Chief, Regional Advisory Committee on Procurement, BRC • Tom Twinning-Ward, Practice Leader (a.i.) Global Environmental Facility, BRC
  • 12. Economic Commission for Europe Report Regional Preparatory Meeting Public procurement 47. Sustainable public procurement was supported as a first critical step to further the green economy at the national as well as the sub-national level. Concrete progress was proposed in the form of sustainable public procurement targets that could be met by an increasing number of countries over the years.