MPs okay sh8b for AIDS firm
Apr 16, 2008
MEMBERS of the National Resistance Movement (NRM) party has endorsed the Government’s guarantee of $4.8m (sh8b) for the anti-retroviral (ARV) drug factory based in Luzira.
By Barbara Among
MEMBERS of the National Resistance Movement (NRM) party has endorsed the Government’s guarantee of $4.8m (sh8b) for the anti-retroviral (ARV) drug factory based in Luzira.
The $38m (sh64.6b) factory owned by Quality Chemicals Industries was set up in October 2007 to produce ARVs for the African market.
At its caucus meeting at Statistics House on Monday, the NRM legislators termed the move as a ‘strategic intervention’.
The MPs argued that the project was in line with the industrialisation policy.
They cited benefits such as technology transfer and employment opportunities.
Members argued that the investment was also in line with the Government’s commitment to fight HIV/AIDS and Malaria.
The factory, if fully operational, would provide medicine for over 200,000 HIV-positive and those affected by malaria.
In his presentation finance minister in charge of general duties, Fred Omach said the cost of importing ARVs had increased from $3m (sh5.1b) in 2004/05 to $54m (sh91.8b) currently.
The Government was importing the medicine mainly from China and India. Omach said it was necessary to help the company acquire the loan to guarantee steady supply of cheap ARVs and other generic drugs.
“In 2005, the Government committed itself to buy ARVs and artemisinin combination therapies produced by Quality Chemicals,†said Omach.
According to the agreement, the Government will buy the medicine for seven years at $45m (sh76.5b) per year.
Prior to the start of local production, the Government will buy ARVs from Quality Chemicals’ partner, CIPLA in India.
A total of sh8b has been provided and sh9b will be allocated in the next financial year.
Omach said Uganda’s ability to get cheap drugs was under threat because her main sources of generic drugs-China, India and Brazil had recently ratified the ‘Trade Related Intellectual Property Rights’ treaty of World Trade Organisation.
This treaty makes it difficult for the countries to manufacture such drugs without authorisation by holders of intellectual property rights.
Quality Chemical is a private joint venture between Quality Chemical Uganda (45% shares) and CIPLA of India (45%shares).
The other share holder is one Dr. Mayanja with 5% shares and the remaining 5% is unallocated.
MEMBERS of the National Resistance Movement (NRM) party has endorsed the Government’s guarantee of $4.8m (sh8b) for the anti-retroviral (ARV) drug factory based in Luzira.
The $38m (sh64.6b) factory owned by Quality Chemicals Industries was set up in October 2007 to produce ARVs for the African market.
At its caucus meeting at Statistics House on Monday, the NRM legislators termed the move as a ‘strategic intervention’.
The MPs argued that the project was in line with the industrialisation policy.
They cited benefits such as technology transfer and employment opportunities.
Members argued that the investment was also in line with the Government’s commitment to fight HIV/AIDS and Malaria.
The factory, if fully operational, would provide medicine for over 200,000 HIV-positive and those affected by malaria.
In his presentation finance minister in charge of general duties, Fred Omach said the cost of importing ARVs had increased from $3m (sh5.1b) in 2004/05 to $54m (sh91.8b) currently.
The Government was importing the medicine mainly from China and India. Omach said it was necessary to help the company acquire the loan to guarantee steady supply of cheap ARVs and other generic drugs.
“In 2005, the Government committed itself to buy ARVs and artemisinin combination therapies produced by Quality Chemicals,†said Omach.
According to the agreement, the Government will buy the medicine for seven years at $45m (sh76.5b) per year.
Prior to the start of local production, the Government will buy ARVs from Quality Chemicals’ partner, CIPLA in India.
A total of sh8b has been provided and sh9b will be allocated in the next financial year.
Omach said Uganda’s ability to get cheap drugs was under threat because her main sources of generic drugs-China, India and Brazil had recently ratified the ‘Trade Related Intellectual Property Rights’ treaty of World Trade Organisation.
This treaty makes it difficult for the countries to manufacture such drugs without authorisation by holders of intellectual property rights.
Quality Chemical is a private joint venture between Quality Chemical Uganda (45% shares) and CIPLA of India (45%shares).
The other share holder is one Dr. Mayanja with 5% shares and the remaining 5% is unallocated.