REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – INDIVIDUAL CONSULTANT SELECTION)

Country: MONGOLIA                                                                                                   

Project name: STRENGTHENING FISCAL AND FINANCIAL STABILITY PROJECT

Credit No. 6084-MN; 6085-MN

Assignment Title: International Consultant to develop methodology for project appraisal and selection as well as rationalization.

Mongolia has received a credit from the International Development Association (IDA) for the Strengthening Fiscal and Financial Stability Project (SFFSP). The Objective of the SFFSP is to contribute to the Government of Mongolia’s efforts to strengthen fiscal and financial stability and improve the quality of expenditure management. The project is designed with five components: (i) Strengthening Macroeconomic and Fiscal Management; (ii) Improving the Efficiency of Public Financial Management; (iii) Enhancing Financial Sector Stability; (iv) Strengthening the Social Protection System; (v) Project Management and Monitoring. The objectives are to strengthen fiscal responsibility and implement the relevant policy measures; improve fiscal discipline; strengthen the resiliency of the banking system; improve public expenditure quality in social protection; and provide support for Project implementation, coordination, monitoring and evaluation, including, inter alia, audit arrangements, reporting requirements, procurement and financial management activities, respectively.

Subcomponent B4 of the project aims to strengthen public investment management in Mongolia by supporting the Public Investment Department (PID) to develop the required guidelines and methodology for enhanced investment project planning, appraisal, selection/prioritization, and budgeting processes. It also aims at supporting the development of a rationalization methodology to identify and restructure under-performing projects as well as to build technical capacity within Ministry of Finance (MoF) and line ministry on Public Investment Management procedures.

The MoF is responsible for the implementation of the public investment projects, including overall coordination and results monitoring. The PID at MOF is responsible for public investment project planning, financing and monitoring. Specifically, the department is in charge of developing projects, plans, policies, and legal provisions exclusively devoted to strengthening the administration and organization of public investments; taking care of completing the ongoing tasks; identifying the most priority investments for the national and regional development policies; conducting studies on needs assessment and sources for financing the public investments; and developing the national budget frameworks of investment for the year, medium-term, and future years.

According to the public investment output index  recently developed by the IMF, Mongolia scored lower than peer countries with comparable per capita capital stock. The study also found that volatile annual aggregate spending on public investment makes it difficult to plan over the project cycle of ongoing investment projects, resulting in large inefficiencies caused by project delays and cancellations.

One of the major challenges affecting the core PIM functions in the country is the lack of a formal project appraisal and selection process based on feasibility studies (economic and financial analysis). The existing planning and budgeting regulations set forth general principles but do not include standard guidelines on how to conduct project appraisal and selection. Without such methodology, it is very difficult to assess inter-sectoral and intra-sectoral priorities, and to determine which projects meet the economic and financial criteria to proceed with their implementation and which ones should be rejected. Moreover, additional to the lack of specific guidelines for project appraisal and selection, there is also limited capacity in the line ministries to conduct the required feasibility studies and lack of capacity within the Ministry of Finance, to conduct independent review on project appraisal results.

A revised version of the Integrated Budget Law (IBL) was approved by the Parliament in 2011. The IBL set forth general requirements for establishing priorities for the selection and approval of investments projects, including the need to take into consideration the economic benefits and social significance for the Mongolian population. It also clarifies how investment projects need to be presented in the budget proposal (i.e. including estimates of recurrent maintenance costs and full costs regardless of their financing sources, and an assessment of their impacts on the budget). The revised law has determined that the methodology for estimating the feasibility and impact of investment projects shall be approved by Cabinet Member in charge of Finance and Budget Matters (Minister of Finance).

Furthermore, currently there is ongoing rationalization exercise of the existing public investment portfolio with the support of the Asian Development Bank. This activity will assist MoF in rationalizing and streamlining its existing public investment program, including by review and stock-take of the existing public investment portfolio, preparation of criteria and methodology for prioritization and rationalization and identifying risks. Building on this experience, the government also needs to develop a rationalization guideline that would help carry out similar exercises in the coming years.

Within the context above, and in order to improve investment management procedures to comply with the provisions of the revised IBL it is required to assess current practice of investment budget planning including the review of currently enforced procedures, methodology and outputs and to develop a comprehensive methodology for investment project appraisal and selection as well as rationalization.

SCOPE OF WORK: 

The main objective of this international consulting service is to review and assess current practices and procedures on budget investment planning, as well as to map existing good practices across the world that could be relevant for Mongolia. Based on the assessment performed and informed by good practices, develop a new methodology for project investment appraisal and selection as well as rationalization so to build up the capacity of relevant actors to analyze, selection, execute, monitor and evaluate public investment programs more effectively and efficiently.

Duration of the contract is six months.

Key responsibilities of the Consultant will include the following, but not limited to:

THE SHORTLISTING CRITERIA ARE: 

To be considered eligible candidates should have all the eligibility criteria listed below:

• Education: A suitable candidate should have a post-graduate degree in Economics or Finance;
• Experience: A candidate should have at least 15 years of professional experience with 10 years of relevant experience on Public Investment Management (PIM). Candidates with practical experience in supporting countries with the development of Operational Guidance for PIM including methodology for project prioritization and evaluation would be preferred.

• Language skills:  Proficiency in English (both verbal and written).
• Other skills:  Excellent interpersonal skills with the ability to function effectively and collaboratively in a team environment; proficiency in PC based applications such as Word, Excel and data management, and knowledge of web-based data system analysis is strongly preferred.

CONTRACT DURATION: The consultant work is expected to commence in June 2018 and the total duration of the assignment is six months.

Interested consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. 

1. Cover letter indicating why she/he considers her/himself suitable for the position, 

2. Detailed CV highlighting relevant skills/experience, 

3. Copy of diplomas or certificates. 

The consultant will be selected in accordance with the World Bank’s Procurement Regulations for IPF Borrowers (July 2016).

Expressions of interest must be delivered in a written form to the address below by e-mail before 23:00 on June 20, 2018 (local time, Ulan-bator, Mongolia). ONLY SELECTED CANDIDATE WILL BE CONTACTED.

Further information can be obtained at the address below during office hours: 8:30 to 17:30 hours (local Ulan-bator time) or procurement@sffs.mn.

Attn: Ms.Khaliun, Procurement specialist, 

Project Implementation Unit

The World Bank – Strengthening fiscal and financial stability project,

Room #205, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia

Tel: +976-70120582

Fax: +976-70110582

70120582