APD | Nepal eyes China to buy vaccines after 'commission row' with Indian company

APD NEWS

text

By APD writerShristi Kafle

Nepal is considering buying two million Vero Cell Covid-19 vaccines from China.

The latest move comes after Nepal failed to receive one million doses of the purchased Covishield vaccines from India in last couple of months.

According to an official of the Ministry of Health and Population, the process has already been initiated to buy vaccines from the northern neighbor.

Though it has not been formally announced, it is learnt that the ministry has sent a letter to the concerned agency in China through the channel of the Ministry of Foreign Affairs. It is further informed that the Nepali Embassy in Beijing is coordinating with the Chinese side for the purchase.

As per local reports, in preliminary talks, China has responded saying it can deliver one million doses of the vaccines by the first week of June.

China had provided 800,000 doses of Vero Cell vaccines to Nepal in grant assistance in March. Nepal had utilized the same vaccine to inoculate its large number of population in April, while the second dose is being administered from this week.

However, it had not taken any initiation to purchase the vaccines from China as it was waiting for the arrival of Covishield vaccines from the Serum Institute of India.

Initially, Nepal had received one million doses of vaccines as a gift from the Indian government. Following this, Nepal purchased two million doses of vaccines at $4 per dose by the Pune-based Serum Institute of India via G2G process. The delivery schedule was–1 million in February and remaining 1 million in March.

shutterstock_285186332_.jpg

Considering the then situation, the government was even looking forward to buy additional 5 million doses at $5.5 per dose.

Out of the two million purchased, Nepal received only one million doses in the first phase in February, but hasn’t received the second installment even in months. It was later revealed that some insiders and commission agents obstructed the vaccine purchase process. The purchase was halted after the agents demanded a ten percent as commission.

The Nepali Minister for Health and Population Hridayesh Tripathi spoke openly in several media interviews about the involvement of influential agents and the commission row which delayed in delivery of Covishield vaccines from India. However, he didn’t reveal the names, saying they are powerful.

Nepal government had agreed to provide ten percent as commission to the private sector in vaccine purchases. However it hadn’t agree to pay a commission on the vaccine purchased directly from the factory, following which the agents moved to actively block the purchase.

As per the local media report, Nepal's Hukum Distribution company quoted its price at $5.5 per dose, and it quoted 10 percent (0.55 cents) as “administration, coordination and distribution margin”, making the total cost as $6.05 per dose.

"The agent’s payment terms were: 80 percent advance, 20 percent before shipment, in favour of Hukum Distribution. It meant Hukum, as a local distributor, wanted the commission on the total transaction without investing a cent," The Kathmandu Post reported.

The Indian side has remained mum over the issue, citing huge demand within India itself with the deadly second wave, and the ban on vaccine exports.

Health experts in Nepal have warned that at a time when the death toll from the second wave of COVID pandemic is surging, Nepal must move ahead with the vaccine procurements. Amid this pressure, now, it seems the government is finally eyeing towards China to purchase the needed vaccines.

According to a high official at the ministry, “If the vaccination drive had taken momentum as per the plan with expected vaccines from India, our human casualty would not be this at this scale.”

Nepal's death toll due to COVID-19 infection has already crossed 5,000 mark, which more than that of China, while it has registered over 450,000 positive cases.

"Nothing is important than people's life. Vaccine is the only solution and China is capable to supply at present. I hope the wisdom prevails to the people in the power over all kinds of arguments for holding on," Leela Mani Paudyal, Former Nepali Ambassador to China, remarked.

He further urged the government, particularly Foreign Minister Pradeep Gyawali, through his social media platform, "Please allow clinical trial for a vaccine through shortest possible method by ensuring required quantity of vaccine for us on priority. A request is pending for a long."

(ASIA PACIFIC DAILY)