A. BACKGROUND

The World Bank (WB) and the European Union (EU) has been implementing a hybrid Trust Fund aimed to support the efforts of the Government of Mongolia (GOM) to improve fiscal discipline, public financial management (PFM), and 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: The first one is to complement and expand the ongoing technical assistance the WB is providing through the Strengthening Fiscal and Financial Stability (SFFS) Project with a number of activities that are deemed critical to support Mongolia in achieving the objectives the country has agreed to in its Economic Recovery Plan (ERP) as well as the development partners’ support including the Economic Management Support Operation (EMSO) of the World Bank and the Extended Fund Facility of the IMF. The second purpose of this TF is to support 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. 

Against this background, Component 2 of the TF complements the work already initiated under Component B of the SFFS Project and focuses primarily on supporting the specific needs of the GOM to establish sound fiscal discipline, to improve expenditure management by strengthening the budget credibility, to establish the foundations for medium-term budgeting, and to re-orientate public investment to strategic projects linked to the diversification of the economy. Three priority areas will constitute the core of the component: (i) improve budget preparation and execution, (ii) improve the management of contingent liabilities, and (iii) strengthen public investment management.

Public-Private Partnerships (PPPs), commonly referred to as concessions in Mongolia, have been widely used in recent years prior to a good practice regulatory framework being put in place. Most of the concessions so far have been under a Build-Transfer (BT) arrangement, a practice since halted, while a smaller number of very large projects have been signed as Build-Operate-Transfer (BOT) or Build-Own-Operate (BOO) projects. In total, these signed commitments represent a capital investment of some USD7.6bn which is approaching 60% of GDP, although most have so far failed to reach financial close. Despite the fact that these BOTs and BOOs imply tremendous fiscal risks, the previous regulatory framework was unable to provide effective management and oversight. The amended Integrated Budget Law (IBL) addressed some of these weaknesses by requiring concession contracts that depend on repayments from the State and/or local budgets to be a part of the normal budgeting processes but even that improvement is not likely to include all PPP, or other externally financed arrangements which may incur indirect costs or involve substantial fiscal risks. 

Mongolia scores relatively poorly on the quality of its PPP framework, though this is a challenging area for many emerging market economies. Concessions in Mongolia present additional fiscal risks because they are currently selected through an entirely parallel process to other public investment projects; are susceptible to unsolicited proposals which are not always linked to strategic priorities; and are not subject to value-for-money or fiscal sustainability analyses. 

The major policy guidance for concessions in Mongolia is provided by the Government Action Plan (GAP) and the Mongolia Vision 2050. Yet, these policy documents are relatively broad and do not present detailed strategies for concessions. There is no published concession strategy or a set of criteria for entering into concession arrangements. 

More recently, a technical assistance mission from the IMF’s Fiscal Affairs Department (FAD) was conducted as a follow up to the 2016 Public Investment Management Assessment (PIMA) and assisted the authorities to strengthen the management of fiscal costs and risks from PPPs. Also, in 2020, a team of international and local consultants in collaboration with the World Bank experts conducted a review on the existing portfolio of signed BOTs and prepared a policy note for the government’s consideration including issues with the existing arrangements and projects and recommendations for addressing them in the short and the medium term. In 2021, the MOF introduced the summary reports and recommendations to the Cabinet meeting. In accordance with the government's decision, the Ministry of Finance in cooperation with the World Bank began drafting the Law on PPPs in July 2021 in compliance with the Law on Legislations. The draft law was researched and prepared with technical assistance from experts from the World Bank and the International Monetary Fund. Subsequently, the draft law was submitted to Parliament in April 2022.

Pursuant to amendments to the Law on Government of Mongolia dated November 12, 2021, the Ministry of Economy and Development was established and subsequently, new structures of the Ministry of Finance and the Ministry of Economy and Development were approved as per Government resolutions 75 and 76, respectively. Accordingly, the MED will be responsible for the planning, ensuring and monitoring of the implementation of the PPP legislation and the implementation of the agreements. However, the MOF will monitor the implementation, analyze the fiscal risk, assess the impact on the budget, and coordinate of PPP projects with the budget.

Within the context above, and in an effort to improve the fiscal governance and oversight of PPP projects, it is necessary to ensure the practices and procedures for future PPP opportunities are better aligned with fiscal policy; and to assess the fiscal costs and risks from PPPs.

B. OBJECTIVE OF THE ASSIGNMENT

The main objective of this consultancy is to advise on fiscal sustainability aspects through PPP secondary regulations and procedures after the approval of the PPP law by the Parliament, and to develop a fiscal cost and risk assessment and monitoring model for the PPP for submission to the Ministry of Finance.

C. SCOPE OF THE WORK 

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

1. Develop a fiscal cost and risk assessment and monitoring model in the relevant procedures after the approval of the PPP law by the Parliament, collaborating with the lawyer hired under the project.
2. Provide inputs to developing the secondary regulations for state support including government guarantees for partnership projects from the fiscal perspective.
3. Provide inputs to developing the secondary regulations for assessing and monitoring the PPP projects’ comprehensive analysis and authorization of partnership agreements and amendments after the approval of the law.
4. Collect comments and recommendations on the draft procedures and the assessment model from the relevant stakeholders and state organizations.
5. Organize meetings and discussions concerning the draft procedures and the assessment model.
6. Conduct research on the international policies and practices on assessing and monitoring the fiscal risks in PPP contracts.
7. Submit the draft procedure and fiscal risk assessment and monitoring model for approval by the Minister of Finance along with the required documents. 

D. DELIVERABLES

The national consultant shall submit the following deliverables to the MOF:

Deliverable 1: Note on the technical and fiscal advice provided and contribution to the drafting of secondary regulations for state support including government guarantees for PPP projects; 

Deliverable 2: Note on the technical and fiscal advice provided and contribution to the drafting of secondary regulations for monitoring PPP projects’ comprehensive analysis and authorization of partnership agreements and amendments;

Deliverable 3: Fiscal cost and risk assessment and monitoring model developed;

Deliverable 4: 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: At the minimum, a bachelor’s degree in Finance;
• Experience: Minimum of 5 years of professional experience. Knowledge of PPPs would be essential;
• Language skills: Mongolian citizen with strong written and fluent spoken skills in both English and Mongolian languages. A sufficient IELTS or TOEFL score would be an advantage;
• Other skills: Be proficient in PC-based applications such as Word, Excel, Power Point, Access and have excellent web research and navigation skills; Excellent 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 Director-General of the Development Financing Investment Department (DFID), MOF and will work on a day-to-day basis with officers in the Public 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 of the MOF, the legal consultant and key line ministries and agencies.
• All information provided to the consultant will be regarded as confidential and information shall not be shared with any outside individuals or organizations unless agreed with the PID. 

G. CONTRACT DURATION AND PAYMENT CONDITION

The consultant’s work is expected to commence in July 2022. The total duration for this assignment is 9 (nine) months. Payments will be released based on the submission of actual deliverables within the timeframe specified in a detailed Contract Implementation Plan.

H. INSTITUTIONAL ARRANGEMENTS

The Ministry of Finance will provide office space, a computer, and a printer. The consultant will have access to the necessary data/information and may need to bring his/her own laptop, when necessary.  

J. 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;

Thirty percent (30%) of the total contract price shall be paid upon the Client’s approval of Deliverable #3 specified in Section D;

Thirty percent (30%) of the total contract price shall be paid upon the Client’s approval of Deliverable #4 specified in Section D.

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, July 01, 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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