Sputnik V: Ministry raises objection to conditions of supply deal
The health ministry has raised objection to some conditions or sections of the supply agreement in procuring 'Sputnik V' vaccine from Russia, officials have said.
The Russian government company, Management Company of Russia Direct Investment (RDIF), prepared the draft agreement.
The health ministry said national interests will be harmed if the draft agreement sent by RDIF is accepted.
In such a situation the health services division of the health ministry has sent the 18-page agreement letter to the law ministry and the experts concerned.
Officials at the foreign ministry and the health ministry said the health services division is closely examining the draft of the agreement.
Highest priority has to be given to national interests in such an agreement.
It has meanwhile raised objections to eight sections and sub-sections.
The officials concerned think there is scope to bargain as the prices of the vaccine is quite high.
The foreign ministry sources said as part of vaccine supply process, RDIF has sent a draft agreement of 18 pages.
Earlier, the health services division of the health ministry and Management Company of Russia Direct Investment (RDIF) inked a deal of confidentiality on 25 April.
According to the agreement, Bangladesh will not be able to disclose confidential information to any third party. Clinical data and facts and figures and content of agreement have been described as confidential. A copy of the draft agreement was handed over to the Bangladesh ambassador in Russia.
Objection to the sections of the draft agreement
According to sub section 2.4 of supply agreement, 'component-1' and 'component-2' meaning two doses of vaccines will be sent separately. But it is not clarified whether their specification is separate or not.
Besides, the agreement says the seller will not be liable if the supply is delayed due to the low production and crisis of raw materials. Rather the deadline will be extended until the production is raised adequately.
Sub-section 2.7 mentions it is mandatory to purchase the entire amount of vaccines committed at the primary stage. In this case the vaccines must be accepted even if the supply is delayed.
Sub-section 2.8 mentions advance payment has to be made for 50 per cent of total purchasing price ahead of the first consignment. But there is no recompense if the suppliers fail to supply in time.
According to section 5, all information of side effects for using vaccines has to be shared with the sellers. However, the buyers have to bear all liabilities of side effects. In this regard, questions have been raised why the information has to be shared with the suppliers if they do not shoulder the liabilities.
In section 6, the 'liability' of suppliers will be maximum 1 dollar or not more than 10 per cent of purchasing price if the vaccine is not effective or less effective. The health ministry questions, "How has this been specified?" Is it not logical to specify the maximum liability whereas millions of dollars have to be paid?
In section 9, no action can be taken against the suppliers if they violate the agreement.
In sub-section 10.3, in some circumstances the suppliers have been given the right to close the agreement. But the buyer has no such scope.
About the objection of the health ministry, chairman of Bangabandhu Sheikh Mujib Medical University (BSMMU)'s pharmacology department, Sayedur Rahman, said highest priority has to be given to national interests in such an agreement.
Previous situation
In a letter issued on 2 May, foreign secretary Masud Bin Momen requested health secretary Lokman Hossain Mia to sign the deal immediately. His letter mentioned some steps in the process of bringing vaccines and the Russian vaccine is expected to reach the country after all these steps are completed.
The foreign secretary said that the government of Bangladesh has to pay in advance the price of the first consignment of vaccines manufactured by Russia. Arrival of vaccines is possible within five to seven days after specification approval and advance payment. RDIF has said that it will be possible to supply one million (10 lakh) doses of vaccine in each consignment.
Given the circumstances, foreign secretary Masud Bin Momen has urged the concerned authorities to sign the supply agreement and take necessary steps on an emergency basis. The foreign minister talked with the prime minister in this regard.
Speaking to Prothom Alo regarding the import of the coronavirus vaccine from Russia, foreign minister AK Abdul Momen said, “We've urged the health ministry to take quick steps. They stall every document sent to them, and it is true in every aspect. We've accomplished all the arrangements. If they do not sign the agreement quickly, we will miss this chance.”
On 27 April, Bangladesh approved emergency use of Russian manufactured Covid-19 vaccine Sputnik V.
A committee formed by the health ministry gave the approval at a meeting of the Directorate General of Drug Administration (DGDA), paving the way for import and use of the vaccine in the country.
The committee mentioned the Sputnik V vaccine is 91.6 per cent effective. The vaccine is being used in 91 countries. The price of each dose is 10 to 20 USD.
This report, originally published in Prothom Alo print edition, has been rewritten in English by Rabiul Islam.