The Nepalese authorities are facing numerous challenges to get these Chinese vaccines as Chinese firms have insisted that Nepal sign a non-disclosure agreement for commercial procurement of these vaccines, putting officials in a fix.
On Wednesday, China announced that it would provide 1 million doses of Covid-19 vaccine under "aid" in Nepal as the Himalayan country struggles to find a vaccine amid recent Covid-19 outbreaks. However, obtaining these vaccines has become a daunting task for Nepali authorities, reports the Kathmandu Post.
In a telephone interview, Chinese President Xi Jinping reassured his Nepali counterpart Bidya Devi Bhandari of providing Chinese-made Sinopharm-based drugs in Nepal, which is struggling to cope with the Chinese epidemic. China's latest vaccine assistance comes just months after the Communist nation donated 800,000 doses of Sinopharm in Nepal, which also received 1 million jabs of AstraZeneca vaccine as a gift from India.
However, Nepali authorities are facing many challenges in obtaining the Chinese vaccine as Chinese firms have insisted that Nepal sign a non-disclosure agreement for the purchase of these vaccines, prompting officials to reconsider.
A confidentiality agreement is a legally binding contract that establishes a confidential relationship. If Nepal signs a non-disclosure agreement with China, that could mean secrecy, and neither of these parties can disclose the details, including the price.
Dipendra Raman Singh, Director-General of Nepal's Department of Health Services, said the Nepalese government had received a proposal for a non-disclosure agreement from Sinopharm. The proposed disclosure agreement contains more than ten issues, including price and specification.
The company will only inform Nepal of its quantity, price and delivery plan only after signing a non-disclosure agreement, the official said.
One of the biggest obstacles to accessing treatment under this confidential agreement is that Nepal currently does not have guidelines for signing such public procurement deals. The recently launched Covid-19 Crisis Management Ordinance is also silent on the non-disclosure agreement, however, it allows the government to buy directly from suppliers or manufacturers without bidding competitively under unusual circumstances.
According to Nepali experts, the undisclosed agreements are only signed when the government decides to purchase security-related, sensitive items from a national security perspective. Details of all other purchases must be disclosed in accordance with applicable law in Nepal, add.
The purpose of the procurement law is to ensure transparency and fairness, the official said, adding, "If any citizen wants the details of the procurement information through the Copyright Act, the government must provide that information."
Nepal's decision to look for other vaccines, including untested Chinese vaccines, after it failed to get any vaccines from India. Nepal had signed a trade agreement with the Serum Institute of India of India in February. However, SII was unable to donate one million of the 2 million doses Nepal has already paid for.
Interestingly, Nepal had agreed to buy 2 million doses from Serum for $ 4 per dose and the agreement does not include a non-disclosure agreement.
Signing non-disclosure agreements with China will only make matters worse in Nepal
Experts believe that such disclosure agreements with China will exacerbate Nepal's situation because it could make the country more difficult to access treatment in China. According to them, the country's procurement law is not silent on whether such an agreement is allowed, and secondly, Nepal plans to pay for the drugs from donor funds.
"Apart from defense-related purchases, Nepal does not participate in non-disclosure agreements," said Rameshore Khanal, a former finance secretary. If Nepal takes money from donor agencies, then it should disclose purchase details such as rate, cost and transportation, among other things, Canal said.
According to Nepal Department of Health officials, one of the provisions of the unintentional agreement is to disclose that information from the agreement cannot be disclosed to any third party, which is an important condition.
However, if Nepal intends to purchase any goods or services with funds received from donor agencies such as the World Bank and the Asian Development Bank, they must send all documents related to the purchase of goods to them. The Nepalese government intends to purchase Covid-19 drugs at a cost provided by international development partners.
On April 2, the government of Nepal signed a $ 75 million loan agreement with the World Bank to finance the availability of safe and effective Covid-19 vaccines in the country. According to officials from the finance and health department, the government is also negotiating with the Asia Development Bank for another $ 150 million Covid-19 purchase.
"It is also difficult to use government resources in purchasing undisclosed contracts because open questions may arise, as the public may ask how taxpayers' money is being spent," said a Nepali official.
Therefore, China's non-disclosure agreements have put Nepali's governments in a legal position. Several questions are also asked about the transparency of the agreement between Nepali and Chinese companies, as these agreements are full of secrecy. Critics believe that such a disclosure agreement gives manufacturers a vaccine, as government negotiators will not know what other countries are paying, which puts them at risk.
In fact, it is not the first time the Chinese have joined a suspicious vaccination agreement with other countries. In January this year, the Bangladeshi government rejected a Chinese vaccine - CoronaVac vaccine because of their explicit contracts. The Chinese company has also demanded that Dhaka share the cost of testing the Sinovac clinic conducted in the country.