World Bank and COVAX to the rescue

THE WORLD BANK AND THE COVAX GLOBAL VACCINE DISTRIBUTION PROGRAM
HAVE TEAMED UP AND LAID BARE A JOINT FINANCING PLAN to accelerate vaccine
supply in developing countries. According to a Reuters report the World Bank and COVAX noted
that developing states are trailing their richer counterparts in the COVID-19 inoculation rates.
The joint World Bank/COVAX financial plan will allow the latter to make advance purchases with
funding from the World Bank and other multilateral development banks at competitive prices based
on aggregated demand across countries.
The vaccines will be procured directly from vaccine manufacturers
“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,” Reuters said
quoting World Bank President, Mr. David Malpass.
“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,” Malpass
said in a statement.
The World Health Organisation (WHO) and the Global Alliance for Vaccines and Immunization
(Gavi) backs the World Bank’s financial compact with COVAX. The concord will help low- and
middle-income countries access additional doses of vaccines, in addition to the existing fully-
subsidised doses they are receiving.
According to the Reuters report, the World Bank/COVAX financial agreement was brokered in the
context amid mounting concerns about the sloth of vaccinations in low-income countries.
It said just 1.1 percent of the populations in low-income states receive at least one dose, compared to
26.9 percent of the total global population, using figures from Our World in Data.
Unless larger numbers of people globally are vaccinated, health experts warn that the pandemic will
spread exponentially and spawn new variants.
Under the joint arrangement, countries that already have World Bank-approved vaccine procurement
projects will request vaccine purchases through COVAX, and ask the World Bank to pay on their
behalf using the existing project financing.

According to the terms of the financial concord, World Bank confirmation will reduce risks and
uncertainties in demand and financing, enabling COVAX to purchase larger quantities of vaccines
from manufacturers at more concessional prices.
COVAX made it possible recently for 92 low and middle-income countries to buy their own vaccine
doses, in addition to receiving shipments paid for by other donors.
Reuters said “COVAX plans to make available up to 430 million additional vaccine doses under its
Advance Market Commitment (AMC) program through late 2021 and mid-2022.”
“Countries will have the opportunity to select and commit to procuring specific vaccines aligned with
their preferences under the AMC program,” it said.