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: (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 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. For more details, please refer to the Project Appraisal Document Report No. PAD2269 . 

The overall objective of Component A of the Project is to strengthen fiscal responsibility and support the implementation of relevant policy measures toward (a) improving the quality of expenditure management, (b) strengthening macroeconomic and budget policy-making capacity, and (c) improving regulatory processes. Within this component, there are also specific activities planned for furthering tax reform including by introducing the latest international taxation rules and regulations.

The Government of Mongolia (GoM) has been undertaking revenue mobilization measures to support the fiscal consolidation efforts in recent years including tax and customs policy reforms as well as revamping of key information technology infrastructure at the tax and customs administrations. Considering the economic and fiscal challenges posed by the COVID-19 pandemic, the GoM will be planning to take further and additional revenue mobilization measures to ensure and accelerate post-pandemic recovery and support fiscal consolidation. In this regard, the GoM is focusing not only on tax revenue but also on reviewing non-tax revenue items to expand the revenue basis. In particular, the MOF and the Government Agency for Policy Coordination on State Property are working in close coordination to improve the efficiency, transparency, and governance of State-Owned Enterprises (SOEs) and increase the revenue contribution by these entities.

There are over 110 SOEs operating in key industries, such as mining, electricity, banking, communication, aviation, and transport with total assets of more than MNT 32 trillion according to the latest financial statements provided to the MOF. Some SOEs are managing and developing mega projects in the mining and infrastructure sectors. Given the size of the total assets, sales, and monopoly of the SOEs, the return on total assets and equity have remained relatively low combined with low profitability and insufficient contribution to the government budget.          

Against the background above, as instructed by the Parliament and the Government, the Ministry of Finance (MOF) is planning to take on a new assignment to review financial soundness of SOEs and to prepare and formulate recommended measures towards improving profitability and revenue contributions by these entities.    

In this regard, the MOF is seeking a local consultant to contribute to carrying out a comprehensive financial analysis on the activities of state-owned enterprises (including mega projects) and other revenue mobilization measures.

B. OBJECTIVE OF THE ASSIGNMENT

The objective of the assignment is to assist the MOF in developing and formulating a financial model for evaluating structure of mega projects including budget analysis and revenue collection in collaboration with officers and local consultants of the Fiscal Policy and Planning Department (FPPD) of the MOF.

C. SCOPE OF WORK

The scope of work that the Consultant is to carry out is to contribute to conducting a comprehensive financial analysis on the activities of state-owned enterprises (including mega projects) and other revenue mobilization measures. Key tasks under the assignment will include, but not be limited to, the following:

1. Review and update the business registration of SOEs in close cooperation with the Government Agency for Policy Coordination on State Property, local government bodies and other respective government agencies;

2. Compile and create detailed datasheets for fiscal contributions made by SOEs including taxes, royalties, dividends and other forms of revenues to the budget; 

3. Collect the necessary data and information and populate/create a database needed for conducting financial and other related analyses on the financial statements and other reports provided by the SOEs;

4. Develop assessment tools to efficiently review financial ratios, profitability, and other indicators to evaluate financial performance of the SOEs;

5. Carry out financial and tax statement analysis as part of the performance review of the SOEs;

6. Support the MOF in assessing the impact of mega projects undertaken by the SOEs and their financial and economic impacts in the medium and long terms;

7. Support the MOF in creating revenue estimation tools and models to forecast short-and-medium term revenue contributions to be made by the SOEs; 

8. Review laws, regulations and other policy documents governing business activities of SOEs and prepare draft recommendations for improving efficiency and profitability of SOEs;

9. Assess the existing financial models and provide recommendations for improvements and modifications;

10. Provide inputs to a proposal for the relevant transparency, public disclosure and governance standards, which can be applied to Mongolian SOEs to increase efficiency and profitability and avoid the principal/agent problem and moral hazards;

11. Assist the MOF in formulating a legislation draft related to undertaking the SOE reform; and

12. Other assignments related to the activities above as reasonably requested by the Client. 

D. DELIVERABLES

The following deliverables shall be submitted to the Client:

1. SOEs business registration database revised containing key registration and stakeholder information;

2. Multi-year SOE tax payment data series and other fiscal contribution statistics;

3. Multi-year SOE financial statement database and other relevant statistics;

4. Financial toolkit to review financial ratios and evaluate financial soundness and performance of the SOEs;

5. Develop mega project financial model by modifying and improving the previously developed models;

6. Revenue projecting models for estimating fiscal contributions by the SOEs by each revenue item;      

7. Assessment report on existing financial models and recommendations for improvement and modifications;  

8. Comprehensive recommendations and a draft proposal for improving legislative environment for SOEs; and

9. Summary report outlining completion of assignment. 

E. CONSULTANT’S QUALIFICATIONS/ SELECTION CRITERIA

• Education: The suitable candidate should have bachelor’s degree  in relevant field: economics, finance, mathematics, accounting or public administration;

• Experience: The incumbent should have at least four (4) years of relevant professional experience including in the areas of financial management and taxation. Knowledge of technical terms of tax and budget as well as working experience related to SOE management or mega projects would be an advantage. CPA, ACCA or CFA designation would be preferred.

• Language skills:  Fluent written and spoken skills in English;

• Other skills: 

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

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

c. Familiarity with the IT system particularly, with fiscal management information system is essential; and

d. Be able to work overtime if required.

F. SUPERVISION AND REPORTING 

The Consultant will report directly to the Head of the Budget Revenue Division (BRD) and the Director-General of the FPPD, MOF and will work on a day-to-day basis with officers, international and local consultants of the FPPD on all matters related to the assignment. The Head of the BRD and the Director-General of the FPPD will meet regularly with the Consultant to review progress with the work program and to resolve any outstanding issues. The consultant is expected to provide monthly reports to the Client with the relevant detailed deliverables and documents enclosed as per Section D above. 

G. CONTRACT DURATION AND PAYMENT CONDITION 

The assignment is expected to commence in August 2021. The total duration of the consultancy service rendered is estimated to be least seven (7) months with a possible extension period based on business needs and satisfactory performance.

The consultant will be required to carry out his/her tasks in line with the approved Work plan, which will serve as a basis for measuring progress on desired outcomes and goals. The monthly reports against the approved work plan will then be the basis for the monthly payments for the consultancy service. 

H. INSTITUTIONAL ARRANGEMENTS

The Client will provide office space and will work with the Consultant on a day-to-day basis. The consultant shall be provided with all the necessary data and information to perform the tasks specified in Section C. All information provided to the Consultant will be regarded as confidential and information shall not be shared with any outside individuals or organizations without the Client’s prior consent.

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 PM,  August 09, 2021.

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

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 #205, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia. Tel: 70120582 or via email to: procurement@sffs.mn