News

$527m project to tackle medical supply chain challenges

April 22, 2026 5:02 pm

Medical supply shortages across Fiji and the wider Pacific are expected to ease under a new regional health initiative introducing a pooled procurement system aimed at improving the efficiency, availability, and pricing of essential medical supplies.

UNICEF, as the implementation partner for the Pacific Healthy Islands Transformation Project, will support participating countries in jointly purchasing medical supplies in bulk rather than through separate smaller orders.

PHIT is a $526.9 million regional investment that will be implemented by Fiji, Tonga, Tuvalu, and Kiribati, with support from the Pacific Community.

World Bank Senior Health Specialist Margreta Norris-Harrit says that under the system, UNICEF will combine procurement processes for medical supplies for the four participating nations before coordinated distribution across the region.

Article continues after advertisement

The World Bank is a financing partner in the project alongside the Asian Development Bank, OPEC Fund, and the Pandemic Fund.

“UNICEF will be an implementation partner – they will be able to support countries to pool some of the procurements that will be made, meaning that rather than having four small markets for a specific purchase, they would be able to make a procurement for all four and then facilitate the distribution and delivery.”

Pooling procurement is expected to improve the consistency of supply availability while also securing better pricing through bulk purchasing.

Norris-Harrit highlighted that supply chain issues in pharmaceuticals extend beyond procurement, with concerns around regulations and quality control, including ensuring that medicines delivered meet required standards.

These issues, she said, will be addressed through the project.

While global disruptions, including geopolitical tensions, may also place additional pressure on supply chains, World Bank Health Specialist Mesulame Namedre noted that Pacific countries are experienced in managing shortages through strategies such as pre-positioning essential supplies during emergencies and natural disasters.

However, he acknowledged that challenges such as limited storage capacity and logistics within health facilities remain key considerations in strengthening the system.

He said these issues will also be addressed through the project.

The PHIT Project will allocate a total of $400.3 million to Fiji to strengthen healthcare services and improve access to essential medical care.