A. BACKGROUND

The World Bank (WB) and the European Union (EU) have been implementing a new hybrid Trust Fund (TF)-financed Strengthening Governance in Mongolia (SGM) project aimed to support the efforts of the Government of Mongolia (GOM) to improve fiscal discipline, public financial management (PFM), as well as transparency and accountability processes for strengthened governance in Mongolia.

This TF, through both Recipient Executed (RE) and Bank Executed (BE) interventions, serves two main purposes. Firstly, it complements and expands the ongoing technical assistance the WB is providing through the Strengthening Fiscal and Financial Stability (SFFS) Project. Secondly, this TF supports the GOM in advancing the current efforts toward increasing transparency, participation, and accountability in fiscal matters as well as in strengthening its capacity to deal with non-technical drivers of the reform process that prevent state agencies from implementing policies and regulations as intended.

Sub-Component 1.3 “Taxation and revenue management” aims at improving the existing tax legal framework through reviewing the related fiscal laws and introducing new fiscal relations to address the inconsistencies in tax laws, introducing international best practices in the tax laws such as transfer pricing and base erosion and profit shifting (“BEPS”), and building comprehensive revenue forecasting and financial models for economic analysis of large-scale megaprojects.

With the current Covid-19 outbreak, Mongolia has been facing consequent lockdowns and border closures and the Government of Mongolia has been facing major issues in fiscal revenue management from the mining sector, which has a major impact on the economy as well as budget revenue. Consequently, there has been a dire need for carrying out an analysis extensively of the demands and prices of the main commodities exported to the key trading partners to facilitate the proper formulation of tax policy decisions. The needed analysis includes aspects of the trading partners’ trade policies including matters concerning their commodity imports and exports, as well as their functions, outputs, supply chain, commodity export logistics, and price expectations.  

The Tax Policy Department (TPD) within the Ministry of Finance, Mongolia is a newly established department responsible for overall tax policy issues including changes to domestic tax laws, international taxation issues, implementation, and compliance issues, and tax expenditure. In the coming years, the TPD is expected to make several tax policy changes for the mining industry to better adjust the tax environment in relation to the current challenges faced due to the Covid-19 pandemic and other relevant circumstances globally. Hence, it is crucial for the MOF team to develop a good understanding of the current situation and formulate an adequate tax policy plan.

B. OBJECTIVE OF THE ASSIGNMENT

The objective of the assignment is to provide support to the MOF in carrying out an analysis on the demand and price of the main commodities exported towards facilitating the formulation of sound tax policy decisions.

C.   SCOPE OF WORK

Key responsibilities under this assignment will include the following tasks at the minimum:

1. To carry out an analysis of the main trading partners’ commodity imports and exports;
2. To identify the major buyers of Mongolian mineral commodities and their functions in the supply chain and respective outputs;
3. To study the trading partners’ trade policies and information about possible changes;
4. To identify logistics issues related to the Mongolian commodities including issues related to border ports and identify and propose possible solutions;
5. To study commodity price volatility and expectations;
6. To provide advice on potential tax policy measures in response to the issues mentioned above;
7. To organize local training activities on mining taxation issues as requested;
8. To provide just-in-time technical support to the work conducted by the Tax Policy Department with regard to the overall tax policy issues; and
9. To undertake other tasks related to activities mentioned above as reasonably requested by the Client.

D.   DELIVERABLES

The following deliverables shall be submitted to the Client:

1. A final report on the analysis related to tasks #1-5 stated in the Section C;
2. A final report on potential tax policy measures proposed in relation to the mining sector; and
3. Monthly progress reports outlining completion of the assignments defined above;

E.   CONSULTANT’S QUALIFICATIONS/ SELECTION CRITERIA

Education: The suitable candidate should have at least a bachelor’s degree in economics, finance, or mathematics;

Experience: The incumbent should have at least five (5) years of directly relevant professional experience in mining, public finance, or taxation. Work experience in the area of cross border trade would be desirable;

Language skills:  Fluent in Chinese and Mongolian, good command of English is a plus;

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.    Be able to work overtime if required.

F.    SUPERVISION AND REPORTING

The Consultant will report directly to the Director-General of the Tax Policy Department (TPD), MOF, and will work on a day-to-day basis with officers and the local consultants of the TPD on all matters related to the assignment.

Director-General of the TPD will meet regularly with the Consultant to review progress with the work program and to resolve any outstanding issues. The Consultant will be required to carry out his tasks in line with the approved Work Plan which will serve as a basis for measuring progress on desired outcomes and goals for the entire consultancy service.

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.

G.   INSTITUTIONAL ARRANGEMENTS

The Ministry of Finance (TPD) 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. 

H.   CONTRACT DURATION AND PAYMENT CONDITION

The assignment is expected to commence in June 2022. The total duration of the consultancy service is estimated to be 10 months.

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, goals and monthly payments for the entire consultancy service. 

I. 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 the previous last two employers no later than 15:00 PM, May 31, 2022.

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. The only selected candidate will be contacted.

Address for submission of Expression of Interest: Attention to Ms.Zolzaya.B, 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_sgm@sffs.mn

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