A. BACKGROUND

Mongolia received a credit from the International Development Association (IDA) for the Strengthening Fiscal and Financial Stability (SFFS) Project. 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: (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 .

Sub-Component B.1 aims at improving budget credibility, predictability, and execution for better delivery of services by strengthening the Medium-Term Fiscal Framework (MTFF) preparation process, and its management and compliance; improving budget preparation and planning functions including regulations and processes to ensure preparation of realistic expenditure plans; supporting adequate implementation of the MTFF; improving budget execution processes; as well as enhancing budget control, internal audit, and risk management functions. The Ministry of Finance (MOF) is responsible for implementation of the Sub-Component B.1 of the SFFS Project.

Starting from 2020 the Ministry of Finance (MOF) has been implementing an ONLINE, TRANSPARENT AND EFFICIENT fiscal system reform to increase the quality of and access to public service, improve fiscal efficiency and enhance fiscal discipline and accountability.

In the education sector, Mongolia is performing better in terms of quantitative performance indicators such as enrollment, graduation and dropout rates while the quality and learning outcomes are still the most pressing issues. Main factors that influence the quality and learning outcomes are rural-urban differences, geographic location, living standards, cost of education, learning environment, teachers’ remuneration, learning facilities and training curriculum. Moreover, migration towards bigger cities, from soums to aimags and from aimags to the capital city, has negative impacts on the capacity and class size of schools. Public spending of general education based on the per-student variable cost is not equally distributed resulting in big variations in the per student variable cost between rural and urban schools. 

Financing mechanism for technical and vocational education and training (TVET) also utilizes input financing based on the cost per student. The current funding formula for TVET is not realistic and it does not account for cost of the program of study. As a result it cannot contribute effectively to implementation of the policy on reducing unemployment and training of skilled work force that meets the labor market demand. 

Hence, it has been agreed with the Ministry of Education and Science (MES) and the Ministry of the Labor and Social Welfare (MLSW), to implement jointly a reform program to resolve the the above issues faced in the education sector through budget funding mechanism moving from input financing to performance based financing system. 

B. OBJECTIVE OF THE ASSIGNMENT

Against the background above, the objectives of this assignment will be to support the MOF in undertaking necessary studies, analysis and estimation for development and implementation of a reform program to improve the quality of and access to education through funding mechanism of general education and TVET.

C. SCOPE OF WORK

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

1. Analyze the composition and inputs of variable costs, cost estimation of inputs, and normative expenditures used in the budget funding allocated to general education and TVET (hereinafter called “educational organization”) and prepare a report on the findings thereof;

2. Conduct comparative studies on international best practices, related papers, reports and recommendations with respect to education financing forms and methodology, education quality assessment, education financing management and information system and educational organization’s management;

3. Based on the above analysis and comparative studies, develop a proposal on funding solutions for educational organization;

4. Provide a technical support to the Budget Expenditure Division of the Fiscal Policy and Planning Department to develop a proposal on funding methodology that combines input (a number of students) and output (outcome, performance and quality) based financing for educational organization; and

5. Provide other necessary technical support to the Budget Expenditure Division, including a program structure for the education portfolio, preparing descriptions of programs and activities, development of performance indicators and targets, providing inputs to support the application of the gender responsive budgeting framework for Education, undertaking cost estimation, developing cost allocation models, organizing discussions with stakeholders and so on.

D. DELIVERABLES 

1. An analytical report on current situation of per-student variable cost financing mechanism for educational organization;

2. A report that covers (i) findings on the comparative studies on international best practices on financing mechanism used in educational organization including education financing forms and methodology, education quality assessment, education financing management and information system and educational organization’s management; and (ii) a proposal on funding solutions; and

3. A proposal on the method that combines input and output based financing for educational organization within a performance-informed program structure that takes supports a gender responsive budget framework. 

E. CONSULTANT’S QUALIFICATIONS/SELECTION CRITERIA

• Education: A suitable candidate should have a post graduate degree in a relevant field: business administration, financial management, public finance and/or other related field;

• Experience: The incumbent should have at least five (5) years of relevant professional experiences including the professional experience on establishment of norms and normative expenditures, undertaking of cost estimation and financial analysis. 

• Language skills: Fluent written and spoken skills in Mongolian and English.

• Other skills: 

a. An understanding of the concepts of good practice in public sector budgeting, including gender responsive budgeting, for example as set out in the PEFA framework is desirable.

b. Excellent interpersonal skills with the ability to function effectively and collaboratively in a team environment and high integrity and accountability;

c. Be proficient in PC-based applications such as Word, Excel and data management, and have excellent web research and navigation skills; 

d. Be able to work overtime if required.

F. SUPERVISION AND REPORTING 

The consultant will report directly to the Head of the Budget Expenditure Division (BED) and Director-General of the FPPD, MOF and will work with officers and local consultants of the FPPD on all matters related to the assignment. The Head of the BED and the Director-General of the FPPD will meet regularly with the consultant to review progress with the work program/tasks detailed under this TOR and to resolve any outstanding issues. The consultant will also work closely with relevant officials of the MES and local governments.

The consultant will be required to carry out his/her tasks in line with the approved Work Plan which will serve as the basis for measuring progress on desired outcomes and goals for the entire consultancy service.

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

G. CONTRACT DURATION AND PAYMENT CONDITION 

The assignment is expected to commence in October 2021. The expected duration of the consultancy service to carry out the various tasks in these TOR will be 4 months. 

The consultant’s approved work plan will serve as the basis for measuring progress on desired outcomes, goals and payments for the entire consultancy service. The Client will review the performance of the consultant in delivering the work and can make changes to the TOR, if deemed necessary, based on mutual discussion and agreement. 

The schedule of payments is specified below:

• 10% of the contract amount shall be paid upon the Client’s approval of Deliverable #1 as specified in Section D;
• 50% of the contract amount shall be paid upon the Client’s approval of Deliverable #2 as specified in Section D; and
• 40% of the contract amount shall be paid upon the Client’s approval of Deliverable #3 as specified in Section D.

H. INSTITUTIONAL ARRANGEMENTS

The FFPD, MOF will provide office space and will work with the consultant on a day-to-day basis. The consultant shall be provided with all necessary data and information to perform the tasks detailed in Section C.  

If you possess the above qualifications, please submit the 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. Two (2) reference letters from previous last two employers no later than 15:00, October 07, 2021.

The consultant will be selected in accordance with the Selection of Individual Consultants (INDV) method of the World Bank’s Procurement Regulations for IPF Borrowers. 

https://thedocs.worldbank.org/en/doc/178331533065871195-0290022020/original/ProcurementRegulations.pdf. 

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. Ariunaa G, 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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