The League of Cities of the Philippines (LCP) has asked President Rodrigo Duterte to issue an executive order allowing their local government units to make advance payments to drug manufacturers for the COVID-19 vaccines they contracted ahead of a Feb. 24 deadline.
This developed as a panel in the House of Representatives approved the tax provision of a bill filed by Speaker Lord Allan Velasco authorizing LGUs to directly purchase vaccines against the coronavirus from manufacturers without having to go through the long process of a public bidding.
In a resolution passed on Feb. 4 but released to the media on Monday, the LCP appealed to the President to authorize their members to pay for the vaccines they ordered from drugmakers, particularly AstraZeneca, under the government’s “A Dose of Hope” Program last Jan. 14.
The advance payments for these orders, signed by 24 LCP member-cities under a tripartite agreement with the National Task Force for COVID-19, is due on Feb. 24, the group said.
They noted that according to Presidential Decree 1445 issued by Duterte, cities need the express authorization of the President to allow them to procure jabs and pay the vaccine manufacturers, including any advances.
“The LCP members seek the urgent action of the Office of the President to issue the necessary Executive Order at the soonest possible time,” added the resolution attested by the group’s president, Bacolod City Mayor Evelio “Bing” Leonardia.
The resolution came after the League’s Special General Assembly on Jan. 12, attended by mayors of 114 cities. Zamboanga City Mayor Beng Climaco moved for the resolution seconded by Pagadian City Mayor Sammy Co and certified by Calapan City Mayor Arnan Panaligan, the LCP’s Secretary General.
Leonardia said Bacolod’s COVID-19 vaccination plan will be as comprehensive as possible to ensure that everyone gets inoculated.
“I’m excited to share the progress we’ve made in Bacolod ever since I approved the creation of a CoVac Council and signed a deal with AstraZeneca for 650,000 doses of their vaccines,” Leonardia said.
The mayor was one of the first local government executives to set up a local COVID-19 Vaccination (CoVac) Council as early as December last year.
“We are comprehensive in our approach such that we’ve considered every step in the process of getting all Bacolodnons vaccinated against COVID, from the logistics and storage down to awareness campaigns and simulation exercises,” Leonardia added.
The mayor presented Bacolod City’s vaccine plan during a webinar entitled “Getting Cities Ready for the Vaccines” on Feb. 24.
Leonardia, as president of the League of Cities of the Philippines, has been at the forefront of advocating the local procurement of vaccines to ensure timely delivery.
He underscored the need for “teamwork” between the national and local governments in implementing the massive vaccination drive.
LCP Vice-President and Quezon City Mayor Joy Belmonte, LCP PRO and Ormoc City Mayor Richard Gomez, and Makati City Mayor Abigail Binay will be joining the Bacolod mayor at the webinar.
The event is part of a series of online sessions organized by the Liveable Cities Challenge together with the LCP and Globe Telecom.
The series aims to gear up cities with insights to design better solutions for their communities under the new normal.
Meanwhile, The House Committee on Ways and Means, chaired by Albay Rep. Joey Sarte Salceda, said Section 6 of House Bill 8648, or the proposed Emergency Vaccine Procurement Act of 2021, provides tax exemptions for the procurement, importation, storage, transport, distribution, and administration of COVID-19 vaccines by LGUs.
These vaccines will be exempted from customs duties, value-added tax, excise tax, and other fees provided that the shots to be acquired by LGUs “shall only be used for their residents and constituents, and not for commercial distribution,” Salceda said.
HB 8648 provides exemptions to compliance by LGUs with the procurement requirements under Republic Act 9184 or the Government Procurement Reform Act in the purchase of COVID-19 vaccines and other much-needed supplies during the pandemic.
As an additional exemption to the guidelines of RA 9184, concerned LGUs are authorized to engage in an advance payment mechanism for purposes of procuring COVID19 vaccines from foreign manufacturers.
The bill allows provinces, cities, and municipalities to make advance payments not exceeding 50 percent of the contract amount for the procurement of COVID-19 drugs and vaccines, unless otherwise directed by the President.
Under the bill, the LGUs may only purchase vaccines that are registered with the Food and Drug Administration or issued with an emergency use authorization (EUA) status.
The deployment of vaccines in every province, city and municipality must be in accordance with the national guidelines implemented by the Department of Health and the National Task Force Against COVID-19.
Last Thursday, the House Committee on Appropriations, chaired by Rep. Eric Yap of ACT-CIS, also approved HB 8648, which seeks to expedite the purchase and administration of COVID-19 vaccines by allowing LGUs to directly purchase the life-saving shots from foreign manufacturers.
Speaker Velasco said this mechanism would ensure that COVID-19 vaccines are “procured and administered in an expeditious, effective, efficient and equitable manner.”
“The next crucible in the fight against the COVID-19 pandemic is the speedy procurement and effective administration of vaccines against the deadly disease,” Velasco said.
“Time is of the essence. Each day of delay is very costly for the government and leaves many of our vulnerable countrymen exposed to the dangers of this disease,” he added.
According to Velasco, the LGUs play an important role in ensuring “people are protected, lives are saved, economic losses are stemmed and mitigated, and public trust and confidence in our institutions is restored.”
He said the crucial fight against COVID-19 is the vaccination of a significant part of the population to attain herd immunity and return to normal, noting that the country could no longer absorb the economic losses of any further restriction in economic activity.
The measure also provides that the requirement of Phase IV trials for COVID-19 medication and vaccine stipulated in the Universal Health Care Law is waived to expedite the procurement of said medication and vaccine, provided these are recommended and approved by the World Health Organization and other internationally recognized health agencies.
Another important feature of the bill is the creation and administration of an indemnification fund for the adverse events following immunization or AEFI.
Along with the monitoring of individuals who will receive the vaccine, Epidemiology and Surveillance Units of the Department of Health shall continuously survey and investigate incidents of AEFI.