This is the biggest ever investment in medical supplies and distribution system.
But this funding will be spent in accordance with an agreed 2 year procurement plan that Minister for Health and HIV, Sir Puka Temu will consider.
Minister Temu said Area Medical Stores are an important part of the medical supplies system.
He stressed this during the launch of the 100 percent Medical Kit Supplies (MSK) to the Badili Area Medical Store on Thursday.
Temu noted the Badili AMS refurbishment of K1.5 million, as evident to that commitment by the government.
Area Medical Stores act like a central base for medical supplies, from which are distributed to facilities through the country.
Bibi Miere, Badili AMS technical advisor, said the AMS operate with two systems:
1. Normal pool system
2. 100 percent MSK
He said the Badili AMS supplies only to Southern Region - Milne Bay, Gulf, Central, NCD and Western Provinces.
It also steps in to assist AMS’ in other provinces, and also houses the national vaccine store.
Despite the K1.5 million refurbishment, Miere says challenges still remain - Stock availability and Storage space.
Meantime, the K266m also funds the construction of a new Area Medical Store in Kokopo and rehabilitation works for stores in Mt Hagen and Lae as well as transit stores in Jiwaka, Manus and Central Provinces.