A. BACKGROUND OF THE PROJECT AND THE ASSIGNMENT

Mongolia has been implementing the Strengthening Fiscal and Financial Stability (SFFS) Project financed through 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: (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; and (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 main objective of subcomponent A.3.1 is to strengthen the capacity for debt management and external development financing operations of the Ministry of Finance (MOF) and the government of Mongolia with a view to, among others, achieving the intermediate result indicator of the SFFS Project on preparing for the Parliament’s approval of the  Government Medium-Term Debt Management Strategy 2019-2022.

Public debt management was sparsely coordinated where its fragments were reflected in various laws in regulations until Feb 2015 when the first Public Debt Management Law was approved building the foundation of the integrated debt management coordination and policy. Nevertheless, there are many areas that need to be improved where performance indicator criteria are to be met and sustained thoroughly. It is essential to regularly maintain debt management activities and make its operations as a routine that will assist the Debt Management Office (DMO) in transitioning from goal-oriented operations to functional routines. Developing documented procedure manuals and regulations for various debt management operations will also facilitate the implementation of the Debt Management Reform Plan.  

Under the project’s objective of strengthening the government’s reporting and transparency of fiscal and financial information, the Debt Management Division (DMD) of the MOF (Ministry of Finance) sees a realistic need to identify and sort through the variety of financial instruments and tools the government uses that impose a range of risks that may affect the budget and essentially the ability of the government to achieve its fiscal targets. Hence, it will be essential to assess the fiscal risks of such financial instruments and tools with contingent liability implications, so as to address and manage their risk exposure in the budget. Identification of the risk level would entail an analysis of those instruments and quantifying the risks to measure their effectiveness.

Moreover, from the side of assets of the budget, the Government of Mongolia has shares in major financial organizations such as the European Bank of Reconstruction and Development, the Asian Infrastructure Investment Bank, the Asian Development Bank, and many other major institutions. Therefore, to mitigate contingent risks relating to the share management policy of the Governor, who represents the country in the above-mentioned financial organizations, the DMD seeks to engage a National Consultant, who can help advance the above-mentioned agenda on risk assessment from the perspective of policy, regulations, and methodology. 

B. OBJECTIVE OF THE ASSIGNMENT

The main objective of this consultancy service is to conduct a gap analysis on the implementation of the Governor’s share management policy and strengthen the capacity building of DMD in areas of operation in relation to external financing activities.

C. SCOPE OF THE WORK

The Consultant is expected to undertake the tasks including, but not limited to, the following: 

Task # 1: To facilitate the DMD and build its relevant capacity in activities related to external borrowings, such as liaising and coordinating operations with investors, partner countries, and international institutions, e.g. negotiating and contracting external concessional loans.

Task # 2: To assist the front office in developing/adopting an approach to preparing and executing the annual borrowing plan and setting the borrowing calendar.

Task # 3: To research other membership options besides existing institutions e.g. research international shareholder profiles and standards to broaden the share management standards etc.

Task # 4: To facilitate drafting recommendations and guidelines on Governor’s share management, which would include improving the decision-making process by reacting to share assessment e.g. realistically assessing needs for new shares, and implementing measures to prevent the ineffective use of current shares, etc.

Task # 5: Undertake any other tasks as reasonably requested and/or assigned by the Head of the DMD.

• Provide written and oral translations as necessary and as requested by the Client as it pertains to the assignment.
• Undertake such other tasks as reasonably requested and/ or assigned by the Director of FPD and head of DMD as it pertains to the assignment.

D. DELIVERABLES

The Consultant is responsible for the following deliverables: 

• Report on the activities undertaken in support of conducting and building capacity in external borrowing activities such as liaising and coordinating operations with investors, partner countries, and international institutions and negotiating and contracting external concessional loans. 
• Support drafting an annual borrowing plan and the borrowing calendar.
• Research report on expanding membership to new institutions.
• Recommendations and guideline drafts on improving Governor’s share management based on share assessment.
• Monthly progress reports on the tasks performed under the assignment and other reports and translation materials as reasonably requested by the Head of the DMD.

E. CONSULTANT’S QUALIFICATIONS/ SELECTION CRITERIA

Education:  A suitable candidate should have an undergraduate degree in a relevant field: Business administration, international relations, finance, or economics;

Experience: Incumbent should have at least one-year of work experience where sound research and analytical skills were put into practice. Past experience in International institutions and central government agencies would be an advantage;

Language skills:  Fluent written and spoken skills in English, Russian and Mongolian;

Other skills: Be proficient in Microsoft Office, specifically Word, Excel, PowerPoint, and 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 Head of the DMD while simultaneously reporting to the Project Implementation Unit (PIU) coordinator. The consultant will work on a full-time basis during the period of the contract.

In the event of project restructuring occurring during the contract duration which affects the Sub-Components currently set (i.e.Sub-Components may be absorbed, eliminated, or newly added), the PIU, at its own discretion might arrange how the assignment might be altered accordingly or appointed elsewhere.   

The DMD and PIU (SFFS/SGM) shall evaluate the consultant’s performance on an output basis and approve invoices for delivered outputs. 

The Consultant must prepare and submit monthly and quarterly reports detailing achievements and, when appropriate, also include details of the impediments in the execution of the entire assignment as requested and on time. 

All reports shall be prepared in both English and Mongolian, in electronic and hard format, which shall be submitted to the DMD and the PIU.

G. CONTRACT DURATION 

The consultant work is expected to commence in October 2022. The duration of the assignment is 6 months. 

H. INSTITUTIONAL ARRANGEMENTS

The Ministry of Finance (MOF) will provide office space and the consultant will work with DMD staff and consultants on a day-to-day basis. In particular, the consultant is expected to communicate and coordinate his/her work with the Senior Consultant and another national consultant who will be supporting the implementation of key activities under the sub-component, particularly on the agenda of contingent liabilities. The consultant shall be provided with all necessary data and information to perform the tasks detailed in this TOR.

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