IMFIN brief 20: Azerbaijan, dramatic savings from a change in procurement

What has been the impact of Azerbaijan’s switch from direct procurement to using UNICEF Supply Division? How did the country evaluate the pros and cons? What implementation challenges did it face?

Key points

• After a careful and comprehensive review of pros and cons, Azerbaijan’s government moved from direct procurement of vaccines to delegating procurement to UNICEF Supply Division in 2014.
• The country’s spending on vaccines fell from US$3.3 million in 2013 to about US$1.3 million in 2014. The money saved went toward cold chain equipment upgrades, immunization of health care workers against hepatitis B, and immunization of adolescents against measles-rubella in 2014.
• Procurement from UNICEF Supply Division has ensured vaccine quality and steady supply.
• Challenges in the switchover included reconciling prepayment of vaccines with national procurement regulations. This was achieved by ensuring that payment and receipt of vaccines would occur in the same fiscal year.