Mongolia received a credit from the International Development Association (IDA) for the Strengthening Fiscal and Financial Stability Project (SFFSP). The Objective of the SFFSP is to contribute to the Government of Mongolia’s efforts to strengthen fiscal and financial stability and improve the quality of expenditure management. The project is designed with 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 the 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 .

Subcomponent B4 of the project aims to strengthen Public Investment Management (PIM) in Mongolia by supporting the Public Investment Department of the Ministry of Finance (PID, MOF) in developing guidelines and methodologies for enhanced investment project planning, appraisal, selection/prioritization, and the related budgeting processes. It also aims at supporting the development of a proposal to improve planning of budget liabilities of PPP projects in the medium-term fiscal framework as well as at building the technical capacity within the MOF and line ministries on PIM procedures.
Public-Private Partnerships (PPPs), commonly referred to as concessions in Mongolia, have been widely used in recent year prior to a well-established regulatory framework was put in place. Most of the concessions so far have been under the Build-Transfer (BT) arrangement while a small number have been Build-Operate-Transfer (BOT) or Build-Own-Operate (BOO) projects. While concessions imply tremendous fiscal risks, the previous regulatory framework was quite weak 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.
There are several areas of notable weaknesses with regards to concessions in Mongolia. First, public investment costs are inherently of medium-term nature due to the multi-year cycle for many projects, particularly for concessions. However, on medium-term budgeting for public investment, Mongolia scores well below the average of emerging market economies.

Second, Mongolia also scores relatively poorly on PPPs, though this is a challenging area for many emerging market countries. Concessions represent fiscal risks, are associated with higher costs, are poorly selected because they are approved outside the budget process (even though concession payments eventually are authorized in the annual budget) and are not subject to value-for-money analysis.

The major policy guidance for concessions in Mongolia is provided by the Government Action Plan (GAP) and the Sustainable Development Vision 2030. 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.
Published World Bank analysis shows that past BT projects turned out to be 25-30 percent more expensive than equivalent budget-funded projects that follow the normal budget processes and the government procurement procedures to finance and implement a project. Payment arrears increase costs due to late payment penalty clauses in contracts and additional interest costs. The recently revised Debt Management Law, however, has prohibited local governments from signing BT contracts. If the BT agreements have not already been concluded, these projects should be stopped or approved through the budget process. If the agreements have been signed, but have not yet become effective, the projects should be renegotiated with partners to either stop them or change them into other types of concessions, such as BOT.
The Concession Law requires cost benefit analysis to be carried out for concession projects but there are no standard criteria to guide the choice between traditional budget financing and concessions. The responsibility for concessions was transferred to the National Development Agency (NDA) in 2016. According to the IBL, concessions with a value of more than MNT 30 billion should be submitted to the NDA for a pre-feasibility study covering design, budget, and feasibility. The MOF has had limited involvement in these processes but has been responsible for indicating the repayment amounts of BT projects in the annual budget plan and financing it based on the audit of concessions contracts and the related audit recommendations. There is limited capacity in line ministries and agencies to evaluate the PPP project costs and to conduct independent review on project agreements and the related legal issues.

Within the context above, and in order to improve the arrangements related to PPP projects in compliance with the revised IBL provisions, it is required to assess the current practices of PPP projects including conducting a review of currently enforced procedures, methodology and outputs and developing a comprehensive proposal to improve planning of budget liabilities of PPP projects in the medium-term fiscal framework.

B. OBJECTIVE OF THE ASSIGNMENT
The main objective of this consultancy is to review and make an assessment of the current practices and legal issues related to PPP projects, conceptualize the international best practice on this matter, and develop a comprehensive proposal to improve planning of budget liabilities of PPP projects in the medium-term fiscal framework.

C. SCOPE OF THE WORK
Key responsibilities of the National Consultant will include, but not be limited to, the following:
Task 1
1. Develop a work plan acceptable to the MOF including the specific tasks under the assignment, the deliverables schedule, and other relevant details;
2. Review the Mongolia legal framework for PPP vis-à-vis some standard international good practices;
3. Collaborate with the staff of the MOF and NDA on reviewing and assessing the current situation of PPP projects and review the currently enforced legal issues, procedures, methodologies and recommendations;
4. Meet the relevant officials including those at line ministries and agencies who are responsible for sector investment and PPP projects and discuss needed revisions to the existing system of investment management for state budget and PPP projects;
5. Meet the Mongolian National Audit Office staff and conduct a study on the audit findings and recommendations for PPP projects;
6. Based on the review and analysis, produce a report on the current PPP project practices.

Task 2
7. Study international best practices on factors contributing to variation in price and develop a methodology to compare international prices.
8. Conduct studies on cost estimation of PPP projects and develop recommendations on how to estimate real costs of these projects and how to improve the integration between financing sources;
9. Compare the procurement selection and appraisal process, costs and benefits of PPP projects with traditional public sector comparator projects and propose necessary revisions and changes;
10.Conduct studies and do estimations on repayment plans for PPP projects and develop realistic repayment plans;
11.    Make a proposal for improving planning of budget liabilities of PPP projects in the annual budget and in the medium-term fiscal framework.
12.    Review international experiences on how to build a unified framework for public investment and develop recommendations on legal issues as well as planning and execution processes related to the PPP projects based on the international best practice.
11. Draft a proposal for PPP projects’ cost estimation and decision making on the financing source as well as selection of the PPP types;
12. Submit the draft proposal to the MOF for review and get comments;
13. Revise the submitted proposal in accordance with the client's comments; and
14. Finalize the proposal and submit to the MOF.

D. CONSULTANT’S QUALIFICATIONS
To be considered eligible, candidates should meet all the eligibility criteria listed below:
   - Education: A suitable candidate should have a university and a master’s degree in one or more of the following relevant fields: finance, economics and business administration.
   - Experience: The incumbent should have at least 10 years of professional experience with specific experiences in formulating strategies and policies for PPPs, identifying, developing, structuring, facilitating the financing processes for PPP projects. Candidates who have held positions in the financial, economic and PPP sector and worked in central government agencies would be highly preferred. Candidates who developed proposals on PPP project bid, evaluation, negotiation processes will be strongly preferred.
   - 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.

E. SUPERVISION AND REPORTING
The consultant will report directly to the Director-General of the Public Investment Department, MOF and will work on a day-to-day basis with officers in the Public Investment Department of the MOF. The Director-General of the PID will meet regularly with the consultants to review progress of the work program and to resolve any outstanding issues.
The consultant will work closely with respective officials of the MOF and key line ministries and agencies.
All information provided to the consultants will be regarded as confidential and information shall not be shared with any outside individuals or organizations.

F. CONTRACT DURATION
The consultant’s work is expected to commence in December 2018. The total duration for this assignment is 8 (eight) months with a probationary period of 1 month. The consultant will be selected in accordance with the World Bank’s Procurement Regulations for IPF Borrowers (July 2016).

G. 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.  

If you possess the above qualifications, please submit following documents:
    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. 2 reference letters from previous last two employers no later than 17:00, January 08, 2018.

The submitted documents will not be returned to the applicants. Please note that incomplete applications would not be considered for evaluation. Only selected candidates will be contacted. Candidates can be interviewed. Detailed terms of reference can be requested from procurement@sffs.mn Contact address: Attn: Ms.Bayarmaa, Procurement Specialist, Strengthening Fiscal and Financial Stability Project
Room #204, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia; Tel: 70120582

70120582