ADB to take care of fund deficiency in buying Covid-19 vaccines

Dhaka (Dec 5, 2020): The Asian Development Bank (ADB) might consider fulfilling the deficiency in funds that the South Asian countries, including Bangladesh, are facing to buy Covid-19 vaccines.

The multilateral lender is likely to provide Bangladesh $1 billion to accelerate economic recovery and tackle the Covid-19 fallout. The assistance will be a part of its plan to provide the South Asian member nations with financial aid to fight Covid-19. 

However, the government seeks more funds from the lender as the vaccination of the whole country will cost more than $1.5 billion.

In this regard, ADB will organise a webinar on December 15 on Covid-19 vaccination readiness for South Asian countries to identify basic needs and shortage of fund for Bangladesh to buy Covid-19 vaccines from aboard, according to a letter received by Economic Relations Division (ERD) Secretary Fatima Yesmin from the ADB country chief on November 30.

During an event in Dhaka on Thursday, ADB Country Director Manmohan Parkash said the ADB has been working on a new programme to give $1 billion to Bangladesh for tackling the economic fallout caused by the pandemic in the last eight months.

The event on ‘Implement the government-announced incentive package aiming to revive the economy impacted by Covid-19’ was organised by the finance ministry.

Earlier, on September 29, the ERD and the ADB signed an agreement for a $3 million grant for procuring urgent medical supplies including the vaccine for the Covid-19.

The government had disbursed around half of the fund to the Ministry of Health and Family Welfare to buy three crore doses of potential Covid-19 vaccines being developed by Novavax and Oxford University/AstraZeneca.

Per dose of the vaccine costs $5 (Tk 423.85) with an extra $1.25 for publicity expenses, which include awareness programmes.

To battle the deadly virus, the government disbursed Tk 735.77 crore from the fund allocated in the current budget.

It so far rolled out 21 stimulus packages since March to absorb the economic shock due to the pandemic.

Of the packages, six involving Tk 34,458 crore were aimed at employment generation and revitalisation of the rural economy. Until November, the government disbursed 37.88 percent of the amount, according to the finance ministry.

On November 10, the Health Service Division wrote to the Finance Division seeking Tk1,589.43 crore to procure three crore doses of Novavax and Oxford/AstraZeneca Covid-19 vaccines.