A. BACKGROUND 

Mongolia has been implementing the Strengthening Fiscal and Financial Stability (SFFS) Project a financed from the credit from the International Development Association (IDA). The objective of the SFFS Project has been to contribute to the Government of Mongolia’s efforts to strengthen fiscal and financial stability and improve the quality of expenditure. The project is designed into five components: (A) Strengthening Macroeconomic and Fiscal Management; (B) Improving the Efficiency of Public Financial Management; (C) Enhancing Financial Sector Stability; (D) Strengthening the Social Protection System; (E) Project Management and Monitoring. For more details, please refer to the Project Appraisal Document Report No PAD2269.

Subcomponent B4 of the project aims to strengthen Public Investment Management (PIM) in Mongolia by supporting the Development Financing and Investment Department (DFID) of the Ministry of Finance (MOF) in developing the required guidelines and methodology for enhanced investment project planning, appraisal, selection/prioritization, and budgeting processes. The MOF is responsible for overall coordination and results monitoring in the implementation of public investment projects. Specifically, the DFID of the MOF is in charge of developing project 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 in line with the national and regional development policies; conducting studies on needs assessment and sources of financing for public investments; and developing the national budget framework for investments for the year, the medium-term, and future years.

One of the major challenges affecting the core PIM functions in the country was the lack of a formal project appraisal and selection process based on feasibility studies (economic and financial analysis). Therefore, under the Subcomponent B4 of the SFFS Project international and local consultants developed a new regulation and methodologies in this regard. The Finance Minister approved this new regulation and methodologies in 2018 (by the order #295 "Regulation on assessing, prioritizing and selecting investment projects and activities to be financed by the state budget", "Methodology for re-evaluating the investment projects being implemented with state budget financing", "Methodology for estimating the economic benefits and social significance of investment projects to be financed by the state budget", and "Methodology for assessing, prioritizing and selecting the new investment projects to be financed by the state budget”). With this regulation and methodologies, it was made possible 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. Additionally, to fill the gaps in the currently limited capacity at line ministries and agencies to carry out the required studies, project appraisal, selection and prioritization, the DFID has been organizing training for the relevant national and local government officials on the regulation and the methodologies as well as the associated detailed guideline.

Within the context above, in connection with the recently approved Law on State Saving and the New Recovery Policy, it is required to further refine and improve the current practice of public investment management in response to the current economic downturn, and to conduct the relevant research and studies towards identifying measures for further actions.

B. OBJECTIVE OF THE ASSIGNMENT 

The main objective of this consultancy service is to support refining and improving the current practices of  public investment management by conducting the necessary research, providing implementation support, producing recommendations on further improvements in all stages of the public investment management; and providing inputs to the Public Investment Division towards finalization of the draft methodology for pre-screening for approval.

C. SCOPE OF THE WORK

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

1. Develop a work plan acceptable to the MOF including specific tasks, schedule, and other details;
   
2. Conduct research and studies on international experiences in public investment management during the downturn of the economy; identify the strategies and further actions to be taken;
3. Identify the current challenges and issues related to PIM cycle and the relevant procedures in Mongolia;
4. Support the task of updating the PIM regulations and methodologies including the procedures for public investment planning, implementation and financing;
5. Support the Public Investment Division in finalizing the draft methodology for pre-screening of the public investment project towards approval;
6. Support the PID in reviewing in annual budget formulation procedure for 2023 as well as the effectiveness of the methodology;
7. Provide technical assistance to the DFID in formulation of annual budget planning and in its subsequent execution;  
8. Provide translation and interpretation support as necessary and as requested; and
9. The consultant may also deliver written outputs consistent with the scope of work, undertake any other tasks as reasonably requested by the DFID under Sub-Component B4.

D. DELIVERABLES

Based on the contracted assignment and a detailed contract implementation plan to be approved by DFID, the national consultant shall be responsible for the following deliverables:

1. Review and analysis report prepared as a result of the carrying out the technical tasks #2 & 3 included in Section C above;
2. Consultation meetings organized with stakeholders to discuss findings from the current practice and recommendations for updating the methodology;
3. Finalized and approved methodology for pre-screening of public investment projects;
4. Report on the support provided for updating the PIM regulations and methodologies including the procedures for public investment planning, implementation and financing
5. A final report for the consultancy incorporating all tasks performed, supported by all the deliverables and documents produced upon completion of the assignment.

E. CONSULTANT’S QUALIFICATIONS

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

Education: A suitable candidate should have a bachelor’s degree in one or more of the following relevant fields: Finance, Business Management, Economics;

Experience: Incumbent should have at least 1 year of relevant professional experience. A data analyzing experience would be an advantage. Candidates who have held positions in the financial and economic sector and experience of working in central government agencies or for donor projects would be preferred; 

Language skills: Mongolian citizen with fluent written and spoken skills in both English and Mongolian, IELTS or TOEFL score would be an advantage;

Other skills: Be proficient in PC-based applications such as Word, Excel, Power Point and have excellent web research and navigation skills; Excellent analytical, organizational, communication and interpersonal skills with the ability to function effectively and collaboratively in a team environment; high integrity and accountability; and be able to work overtime if required.

F. SUPERVISION AND REPORTING 

The consultant will report directly to the Head of the Investment Division of the Development Financing and Investment Department, MOF and will work on a day-to-day basis with the staff and consultants of the Investment Division of the MOF. The Director-General of the DFID will meet regularly with the consultant to review progress of the work program and to resolve any outstanding issues.

The consultant will work closely with respective officials and consultants not only from the MOF but also of key line ministries and agencies.

All information provided to the consultant will be regarded as confidential and the information shall not be shared with any outside individuals or organizations. 

The consultant will prepare monthly progress reports detailing the achievements and impediments in executing the entire work plan effectively. These progress reports will be discussed with the director of the DFID.

G. CONTRACT DURATION 

The consultancy assignment is expected to commence in June 2022. The total duration for this consultancy service will be 10 months. 

H. INSTITUTIONAL ARRANGEMENTS

DFID will provide office space and will work closely with the consultant on a day-to-day basis. The consultant will have access to the necessary data/information to perform the tasks detailed in this TOR.  

I. SCHEDULE OF PAYMENTS 

The schedule of payments is specified below (subject to contract negotiations):

• Twenty percent (20%) of the total contract price shall be paid upon the Client’s approval of Deliverable #1 specified in Section D;
• Twenty percent (20%) of the total contract price shall be paid upon the Client’s approval of Deliverable #2 specified in Section D;
• Twenty percent (20%) of the total contract price shall be paid upon the Client’s approval of Deliverable #3 specified in Section D;
• Twenty percent (20%) of the total contract price shall be paid upon the Client’s approval of Deliverable #4 specified in Section D.
• Twenty percent (20%) of the total contract price shall be paid upon the Client’s approval of Deliverable #5 specified in Section D.

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