Pharmaniaga gets 25-month interim extension after concession ends

TheEdge Sat, Nov 09, 2019 01:10am - 1 year ago

PUTRAJAYA (Nov 8): The Government has agreed to provide a 25-month interim period for procurement of drugs to Pharmaniaga Bhd after its concession ends on Nov 30, said Health Minister Datuk Seri Dr Dzulkefly Ahmad.

He said the interim period from Dec 1, 2019 to Dec 31, 2021 was to ensure that there was no supply chain disruption in the supply and distribution of medicines to the Health Ministry's facilities nationwide.

Dr Dzulkefly said the 25-month period would also allow the Health Ministry to make the necessary preparations to undertake the services which were done previously by Pharmaniaga, whose concession was said to be a monopoly.

"If the Health Ministry is able to take over the role of Pharmaniaga in less than 25 months, then an open tender for procurement of medicines will be initiated early," he said at a press conference after his ministry's post-Cabinet meeting here today.

Dr Dzulkefly said the implementation of the interim period was decided at the Cabinet meeting today after he tabled a memorandum on Pharmaniaga’s concession, which ends on Nov 30.

Meanwhile, Dr Dzulkefly said that starting Dec 1, 2019, the Government will award Pharmaniaga a five-year contract for logistics and distribution of medicines based on the capabilities, performance and everything that Pharmaniaga has built until now.

"The Government has decided it as a matter of policy to award the contract for five years. After five years the situation depends.

"In the five-year period, the Government will build capacity through vendor development programmes and so after that, the Ministry will be able to make open tenders for medicine logistics concessions," he said.

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