A. BACKGROUND   
Mongolia has received a credit from the International Development Association (IDA) for the Strengthening Fiscal and Financial Stability Project (SFFSP). The Objective of the SFFS Project is 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: (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: Strengthening fiscal responsibility and implementing relevant policy measures, improving fiscal discipline, strengthening the resiliency of the banking system, improving public expenditure quality in social protection, providing support for Project implementation, coordination, monitoring and evaluation, including, inter alia, audit arrangements, reporting requirements, procurement and financial management activities respectively. For more details, please refer to the Project Appraisal Document Report No. PAD2269.
Mongolia's economic development has been delayed due to its mining-oriented economic structure, a banking-oriented one-sided financial market and high policy rates. Thus, for the economy to take a leap forward, the task is to diversify the industrial structure by expanding investment in non-mineral sectors and to raise long-term economic development funds by revitalizing the capital markets. It is not enough for the country to rely on short-term high-cost banking resources to ensure long-term sustainable growth and diversify the economy. Moreover, domestic resources are not sufficient to support non-mining sector’s investment in capital markets. The GDP growth rate of Mongolia reached 15 percent in 2012, when the portion of foreign investment in the stock market exceeded 90 percent, but the economy has been losing growth momentum since 2013 as foreign investment had plunged. For further development of the economy and stabilize the investment base and sustainable investment to the capital markets, we need to carefully analyze the legal framework, macroeconomic fundamental and capital markets infrastructure and its cost to attract long-term foreign investment in the market.
In 2017, the EBRD together with the Ministry of Finance of Mongolia implemented a project for evaluating money markets and capital markets. The project identified two essential measures to support the development of the capital markets: the first, to improve the legal environment, and the second, to introduce the “DvP/T + 2” principle in the payment system. According to the recommendations, the MOF successfully introduced the DvP/T+2 system in 2020. Therefore, Mongolian capital markets have laid the groundwork for returning to the FTSE Frontier market watch list and for attracting foreign investors. Moreover, since 2019, the MOF has been cooperating with local consultants through the SFFS project to improve the relevant legal environment of the stock markets and formulate draft amendments to the Securities Market Law and other relevant laws.
In order to attract the foreign investors to invest in the Mongolian capital markets the country needs to overcome obstacles that hinders the foreign portfolio investment to Mongolia. The Ministry of Finance (MOF) is seeking to hire a professional national individual consultant to develop research and recommendations on the capital markets development issues. Generally, the MOF needs an expertise on capital markets on a regular basis. The reviewing process will be closely supervised by MOF throughout the period of the consultancy service and in addition, the consultant is expected to coordinate the work with the Financial Regulatory Committee and other organizations.  

B. OBJECTIVES OF THE ASSIGNMENT
The main objective of the National Individual Consultant is to assist the Financial Market and Insurance Division (FMID) of Financial Policy Department of Ministry of Finance (MOF) for carrying out research and recommendations for identifying challenges and obstacles for foreign investors to invest in the Mongolian Capital Markets and offer solutions to the issues.

C. SCOPE OF WORK
The consultant shall carry out the following tasks, but not limited to:
1. Conduct research on best international practices for foreign portfolio investments in Reference Countries;
2. Determine the current status of capital markets and analyze the obstacles for Foreign Investments in Mongolian capital markets;
3. Conduct research on identifying investment opportunities in Mongolian Capital Markets;
4. Examine the current laws and regulations on the local custody and investment infrastructure and identify advantages and disadvantages;
5. Provide professional expertise on capital markets on a regular basis to the FMID, FPD, MOF during the consultancy service;
6. Undertake such other tasks including coordination of other activities relating to the assignment as reasonably requested and/or assigned by the Director of FPD and Financial Market and Insurance Division head;

D. DELIVERABLES
The Consultant shall provide the following deliverables in regard to the aspect of this assignment:
      I.    Provide a full report of international best practices for foreign portfolio investments in Reference Countries;
     II.    Provide research for Mongolian capital markets investment opportunities;
    III.   Submit a comprehensive recommendation report for overcoming the obstacles of foreign investments in capital markets;    
   IV.    Submit a comprehensive report for legal environment of local custody and investment infrastructure;
    V.    Submit a recommendation report on the incentives to promote Foreign Portfolio Investment;

Consultant will be selected in accordance with the Individual Consultant Selection Method set out in the Procurement Regulations: The following is the link to the World Bank’s website: https://policies.worldbank.org/sites/ppf3/PPFDocuments/Forms/DispPage.aspx?docid=083b3f94-a932-4395-a410-834f8bc14f8c

E. CONSULTANT’S QUALIFICATIONS/ SELECTION CRITERIA
    - Education: A suitable candidate should have a bachelor or higher degree in the fields of Finance and Economics and Investment. Additional academic or professional background on specializing in the capital markets would be highly preferable.
    - Experience:  Incumbent should have at least 8 years of relevant professional experience with the skill of developing legislation, conducting financial (capital markets) and economic analysis; and an excellent understanding of Mongolian capital market’s current condition, and its challenges, laws, and regulations.
    - Language skills: Fluent written and spoken skills in English and Mongolian.
    - Other skills:
      a. Excellent skills in research, facilitation of workshops, and consultations.
      b. An additional language skill would be an asset.
      c. With excellent skills and abilities to function effectively and collaboratively in a team environment.
      d. Be proficient in PC based applications such as Word, Excel and data management, and have excellent web research and navigation skills.

F. SUPERVISION AND REPORTING
The consultant will report directly to the director of FMID of MOF. The senior specialist on financial markets tasks in collaboration with the head of the FMID will provide input to the evaluation of the consultant’s performance.

G. CONTRACT DURATION
The consultant is expected to commence working effective from October 2020. The duration of the assignment is 6 months.

H. INSTITUTIONAL ARRANGEMENTS
The relevant counter specialist of FMID shall provide necessary data and information to the consultant for performing the assignment. The MOF will provide office space with furniture, internet access, computer, and printers.

I. PAYMENT SCHEDULE

    • 30% of the total contract amount – will be paid upon successful completion of the deliverable (i,ii) stated in the ToR conditional on the Client’s approval;
    • 40% of the total contract amount – will be paid upon successful completion of the deliverable (iii, iv) stated in the ToR conditional on the Client’s approval;
    • 30% of the total contract amount – will be paid upon successful completion of the deliverable (vi) stated in the ToR conditional on the Client’s approval;

If you possess the above qualifications, please submit following documents via email to procurement@sffs.mn:
    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; and,
    4. 2 reference letters from previous last two employers no later than 17:00, September 25, 2020.

The submitted documents will not be returned to the applicants. Please be noted that incomplete applications would not be considered for evaluation. Only selected candidate will be contacted.

Address for submission of Expression of Interest: Attention to Ms.Bayarmaa L, Procurement Specialist, Strengthening Fiscal and Financial Stability Project, Address: Room #204, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia. Tel: 70120582 or via email to: procurement@sffs.mn

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