A. BACKGROUND 

Mongolia has been implementing the Strengthening Fiscal and Financial Stability (SFFS) Project with a 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 PAD22691.

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 Public Investment Division, 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 have 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 will be 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. 

Another challenge which is affecting the PIM functions in Mongolia is the lack of a formal post project evaluation (PPE). In this regard, the DFID intends to develop a formal guideline/methodology for the PPE that allows evaluating the effectiveness of projects in realizing the proposed benefits as outlined in the economic appraisal and by introducing asset management to the PIM regulations. The introduction of the PPE and asset management would be useful elements of PIM implementation throughout its cycle.

Within the context above, the MOF intends to hire a consultant to help draft and implement a formal guideline/methodohology on post project evaluation and asset management towards creating an integrated public investment database in order for the current practices to become in convergence with the global good practice requirements.

B. OBJECTIVE OF THE ASSIGNMENT 

The main objectives of this consultancy service are to help: 

(i) introduce the concept of public asset management 

(ii) conduct studies towards improving the post project evaluation, 

(iii)  develop draft guidelines/methodology for PPE for approval,

(iv) conduct necessary research and create an integrated public investment database.

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. Review the PIM regulations and methodologies and identify the current challenges and issues related to post project evaluation;

3. Develop a proposal/recommendation for ex-post evaluation of the effectiveness of public investment projects in realizing the proposed benefits as outlined in the economic appraisal;

4. Identify opportunities for increasing public investment projects’ yield of benefits and to recommend actions required to achieve their maximisation;

5. Conduct research on international experiences for public asset management and its registration;

6. Conduct research and organize meetings with the respective officials of the Agency for Policy Coordination on State property and Regulation (PCSP) to introduce asset management into the PIM cycle: 

• Identify issues and gaps regarding the public investment asset registration;
• Identify which areas/parts of public investment projects should be registered as an asset;
• Identify issues when calculating the asset depreciation and relative period of maintenance after the handover of public investment projects;
• Develop guideline for making comparisons between the expected economic efficiency and the actual result;

7. Conduct the necessary research and create an integrated public investment and asset database on the PIMS platform for better transparency and tracking of the full cycle of the public investment management processes. 

8. Assist in organizing the annual training on Public Investment Efficiency;

9. Provide translation and interpretation support as necessary and as requested; and

10. 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 #2-5 included in Section C above;
2. Consultation meetings organized with stakeholders to discuss findings from the current practice and recommendations towards introducing asset management into the PIM practices;
3. Draft guideline/methodology for PPE of the public investment project;
4. Report on the research conducted and creation of an integrated public investment database
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 relevant professional experience. Candidates who have held positions in the financial and economic sector and experience of working in central government agencies and 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 Public Investment Division of the Development Financing and Investment Department (DFID), 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 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 July 2022. The total duration for this consultancy service will be 10 months. 

H. INSTITUTIONAL ARRANGEMENTS

The 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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