ADB launches $9-B financing facility to help member-countries access, distribute COVID-19 vaccines

Manila-based multilateral lender Asian Development Bank (ADB) on Friday launched a $9-billion vaccine financing initiative to provide support to its developing member-countries in procuring and delivering coronavirus disease (COVID-19) vaccines.

“As ADB’s developing members prepare to vaccinate their people as soon as possible, they need financing to procure vaccines as well as appropriate plans and knowledge to be able to safely, equitably, and efficiently manage the vaccination process,” ADB president Masatsugu Asakawa said in a statement.

“[The] APVAX (Asia Pacific Vaccine Access Facility) will play a critical role in helping our developing members meet these challenges, overcome the pandemic, and focus on economic recovery,” Asakawa said.

More than 14.3 million positive cases have been identified in Asia and the Pacific, causing more than 200,000 deaths, according to the ADB.

As the pandemic persists, economic growth in developing Asia is projected to contract by 0.4% in 2020 — the first regional gross domestic product contraction since the early 1960s, it said.

The lender said vaccination programs can break the chain of virus transmission, save lives, and mitigate the negative economic impacts of the pandemic by restoring confidence in people’s ability to work, travel, and socialize safely.

Comprehensive framework

The ADB said the APVAX provides a comprehensive framework and resource envelope for supporting developing Asia’s vaccine access, using two complementary components.

First is the Rapid Response Component, which will provide timely support for critical vaccine diagnostics, procurement of vaccines, and transporting vaccines from the place of purchase to ADB’s developing members.

The second, Project Investment Component, will support investments in systems for successful distribution, delivery, and administration of vaccines along with associated investments in building capacity, community outreach, and surveillance.

This may include such areas as cold-chain storage and transportation, vehicles, distribution infrastructure, processing facilities, and other physical investments, according to the ADB.

The component may also be used to develop or expand vaccine manufacturing capacity in developing members, it said.

ADB said its financing for vaccines will be provided in close coordination with other development partners including the World Bank Group, World Health Organization (WHO), COVID-19 Vaccines Global Access Facility (COVAX), GAVI, and bilateral and multilateral partners.

“APVAX promotes safe and effective vaccines to be accessed in a fair manner. For a vaccine to be eligible for financing, it must meet one of three criteria. It must be procured via COVAX, prequalified by WHO, or authorized by a Stringent Regulatory Authority,” the lender said.

“Additional access criteria, such as a vaccination needs assessment, a vaccine allocation plan by the developing member, and a mechanism for effective coordination among development partners also help ensure that vaccine support under APVAX can be fairly and effectively implemented,” it added.

Apart from APVAX, the ADB said it is also making available a $500 million Vaccine Import Facility to support the efforts of its developing members “to secure safe and effective vaccines, as well as the goods that support distribution and inoculation.”

The said facility is part of ADB’s Trade and Supply Chain Finance Program. It said guarantees available through the program’s vaccine import facility will mitigate payment risks and facilitate import of such goods.

ADB, established in 1966, is owned by 68 members—49 from the Asia Pacific region. — RSJ, GMA News