A recent article on News You Should Know tells the story of the opening of a new factory in Uganda for the production of ACTs and ARVs. The joint venture between the local company and Cipla of India apparently involves an investment of US$ 40 million, half of which has been put up by the Indian company. The half put up by Quality Chemicals has apparently been secured by loans from local banks, and implicitly guaranteed by the Ugandan Government, i.e. a very soft loan.
The Ugandan Government has also apparently given assurances to Quality Chemicals that it will source all its requirements for ACTs and ARVs from the factory for the next 8 years. The question is, does this mean that there will be no competitive tendering for these drugs in Uganda for the forseeable future? Where does this leave the donors of funding for HIV and malaria interventions in Uganda, such as the Global Fund? Do they not prefer that money they provide be used in a transparent manner?
It remains to be seen whether the price of these drugs will decrease in Uganda as claimed by Quality Chemicals if no competitive bidding takes place.
