Background

With the changing global development finance landscape, Lao PDR sees its graduation from LDC status by 2020 as an opportunity to demonstrate the effectiveness of its public policies and economic performance that will enhance its capacity to effectively mobilise, manage, and deliver a wider range of development finance. In the period of 2005-2010, domestic tax as a percentage of total government expenditure averaged around 59.4 per cent per year while ODA in the form of grants was 14.1 per cent. Beyond ODA, Foreign Direct Investment (FDI) has been considered as a major source of development finance in the current National Socio-Economic Development Plan (7th NSEDP 2011-15).

More recently, the Government of Lao PDR recognizes the need to already be operating in a post-graduation mode prior to 2020 to indicate its readiness. Addressing the development financing gaps needed to achieve the MDGs by 2015 and to implement development priorities in the 7th NSEDP including the vulnerabilities to meet LDC graduation threshold related to the graduation criteria are necessary. The Government under the leadership of Ministry of Planning and Investment is in the process of formulating the 8th NSEDP (2016-2020) with LDC graduation objective a center. As such, the Government will commission a Development Finance and Aid Assessment (DFAA) - a comprehensive assessment of current and future flows of development finance in particular ODA trend including climate finance.

In doing so, the DFAA will explore the kinds of institutional arrangement that will be required in Lao PDR across public and private institutions with a wider development finance landscape and a more globally integrated Lao PDR economy.  A core aspect of this part of the assessment is the scope, nature, and capacity that will be required in the future in terms of the planning and budgeting strategy, framework and processes and how they are better linked with public investment program, and development cooperation forum (such as the Round Table Meetings). Exploring ways that allow Lao PDR to draw data synergies from various sources of development finance using existing systems and tools such as those in Ministry of Finance (MoF), Ministry of Planning and Investment (MPI), and line ministries for tracking, monitoring, and reporting on future flows needs are critical.

Duties and Responsibilities

Purpose of the Assignment:

To conduct a DFAA is to undertake an evidence-based analysis that helps Lao PDR with a number of existing key policy questions and understanding the potential implications of the policy measures being explored. Specifically, the DFAA will capture data on development assistance flows, map and analyse the trends and critical policy implications with regard to the achievement of national priorities and goals in the 7th NSEDP, and provide key findings and recommendations to inform the:

  • Formulation of an Aid or Development Cooperation Policy for 2015-2020 and beyond;
  • Review of definitions of ODA and related modalities that make sense for Lao PDR country context given new sources and mix of providers and for beyond 2015;
  • Feasibility of ODA as a key source for the implementation of the 8th NSEDP (2016-2020) and sharpening the 8th NSEDP focus financing strategy and fiscal policy for development;
  • Prioritization and focus of Lao PDR’s 8th NSEDP and Post-2015 development goals in term of resources included; and
  • Lao PDR LDC graduation by 2020 strategy.

Scope of Work:

The Development Finance and Aid Assessment (DFAA) will focus on a macro level assessment of the overall flows of development finance into and within Lao PDR which maps the trends in the changing nature of such flows to Government priority sectors as articulated in the 7th NSEDP and other key policies. The assessment will provide predictions of future flows, especially the ODA in relation to the policy objectives and priorities outlined in the DFAA purpose and results. Key findings would then inform the policy, institutional recommendations, technical systems and tools and human resource capacity required to enable Lao PDR to better anticipate and manage the evolving flows of development finance sources, and in putting in place measures to strengthen its management and technical capacity to mobilise, manage, and deliver current and future development sources especially ODA, South-South Cooperation, private investment and PPP.

The exercise will be undertaken in the context of a regional project managed by UNDP Asia Pacific Regional Centre (UNDP APRC) which will include similar assessment being conducted in parallel in other countries of the region including Bangladesh.

The study team comprising of international and national consultants will undertake their work with a view to having a Lao PDR DFAA report presented at the 2014 Annual Round Table Implementation Meeting (November 2014), informing Laos preparations for the UN General Assembly meeting on MDGs and Post-2015 dialogue and the Third International Conference on Financing Development (July 2015).

The process will need to be highly consultative as managing development finance effectively requires a collective effort from many parts of government, a number of development partners as well as from the private sector, civil society and other actors (see Annex 1 for preliminary stakeholder analysis).

As part of the assessment a process of consultation, data collection and analysis will be undertaken over a period of months. The assignment begins with desk work (2 weeks) and to be formally launched with an inception workshop. The workshop is to familiarize stakeholders with the study purpose, outputs, and targeted results. Validation of the study key findings and recommendations by stakeholders can be undertaken by a validation workshop facilitated by MPI/MoF as co-lead of the study and core group with support from UNDP.

The study will make use of the broad range of relevant analysis that already exists within Lao PDR. An initial mapping of this work will be undertaken to ensure all existing and proposed analysis is drawn from and contributed to. This range of analysis will relate to development finance and aid flows past, present and future; ODA reports; public financial management and budget related analysis at national level.

The Government-led assessment will seek to draw together and inform development partner commissioned assessments including those underway or planned by development partners. The DFAA Team led by the International Public Finance Expert will:

 Key tasks:

  • Develop the Lao PDR DFAA methodology drawing from the generic methodology for Development Finance and Aid Assessments (as developed by the AP-DEF) and the specific methodologies used for Bangladesh, Papua New Guinea, the Philippines and Vietnam, adapting them in line with this and attached TORs and the Lao PDR context. (September 2014);
  • With the Government of Lao PDR (DIC/MPI) led DFAA Committee agree on final DFAA timelines for deliverables, management and oversight arrangements and roles (September 2014);
  • With guidance from the DFAA Committee conduct a stakeholder analysis to highlight the key partners to be consulted and to contribute to the assessment. See Annex 1 for an indicative matrix to form the basis of this analysis. (September 2014);
  • Map existing policy, data and analysis as it corresponds to the assessment framework and pull this together as an initial literature and data review. See table 1 for indicative matrix to form the basis of this mapping. (September 2014);
  • Finalise DFAA work plan including case studies. Organise an inception workshop to present the methodology, work plan and initial literature review, data analysis and stakeholder analysis for the exercise to a wider group of national stakeholders. (September 2014);
  • Conduct the DFAA exercise according to the work plan (2-3 weeks September/October 2014);
  • Share draft report (October 2014) and respond to comments and revisions (late October 2014);
  • Organise a validation workshop to finalise assessment findings and discuss the options for development finance strategies in the future. (October 2014);
  • Submit final report to DIC/MPI and relevant stakeholders including Department of Planning (DOP), Department of Investment Promotion (DOIP), the National Economic Research Institute (NERI), Ministry of Finance (MoF) and the Ministry of Industry and Ministry of Commerce before end of October in time for publication by early November, ahead of annual RTIM, November 2014.

Final Products:

The assessment is expected to be undertaken in two parts and to produce two key outputs in the form of a DFAA report comprising of part one and two of the study. The South-South Cooperation Specialist will contribute to Part of the Report and will be directly responsible for the report on the in-depth study on South-South Cooperation (SSC).

Part One:

The first part of the assessment will be to conduct an overall assessment of development finance and aid flows (domestic side: tax, non-tax, other income and domestic private investment; and on external side: ODA, SSC, public borrowing, private borrowing, FDI, and external philanthropy). An initial report will provide: 1) an introduction to and an overview of these development finance and aid inflow in Lao PDR; 2) future scenarios, prospects and feasibility of ODA in context of changing flows of development finance to Lao PDR in the period 2015-2025; and 3) key findings and credible recommendations (policies, institutional arrangements, and technical systems and tools). It is envisaged that key findings and recommendations from this and the second part of the assessment will also result in strengthening institutional arrangements for the mobilization, management, and delivery of development finance and aid over the medium term at national.

Part Two:

The second part of the assessment will focus on in-depth studies on ODA, SSC, private investments via FDI and domestic private investment, and Public Private Partnership (PPP) in Lao PDR.

  • ODA: The in-depth study will focus on analysis of the flows in particular climate finance, modalities, management  and delivery of ODA and the feasibility of each flow and appropriateness of the various modalities to achieve the targeted ODA volume in the 8th NSEDP financing strategy; the changing nature of the focus and portfolio of existing ODA providers to Laos PDR, identification and analysis of new providers that could complement existing mix; and review and provide possible definitions of ODA in Lao PDR that reflects the inclusive partnership in the country context.
  • SSC: This component will focus on mapping the data and information on the nature and in flows of south-south cooperation triangular cooperation, and regional cooperation; will help national stakeholders and policy makers  better understand the role of and demand for SSC as part of an expanded range of development cooperation initiatives supporting the achievement of national development priorities; capture the existing volume, Identify  ways in which this information is used in defining ODA and reflects inclusive development cooperation for Lao PDR beyond 2015, the management of SSC, within different sectors and at the national level; and assess policies, institutional arrangements, technical systems and tools, and human resource capacity necessary to effectively and efficiently manage SSC as part of a country’s development cooperation.
  • Public-Private Partnerships (PPP) and Private Investment: this will focus on mapping the existing forms of PPP and exploring future opportunities for PPP that relates to ODA but in more innovative ways or a catalytic role to attract private investment that make sense for Lao PDR.

Timeline:

Pre-Country Assessment and Mapping of Information on SSC (CAMI) and DFAA launch preparation to include support to DFAA international team leader and national team leader (Tentatively from 22 September 2014):

  • Provide feedback on proposed DFAA and finalizing component of methodology related to SSC and CAMI;
  • Finalise overall work plan including timeline for key outputs, implementing the CAMI including SSC case studies, and proposed schedule of meetings for the in-country consultations.

Prepare for launch workshop including support to inputs to National Team Leader on selecting stakeholders (30 September - 11 October 2014):

  • Undertake first mission (inception) to Lao PDR as part of the DFAA Team and support to DFAA international team leader to include;
  • Provide inputs to preparations for launch workshop including support to selecting CAMI/SSC related stakeholders;
  • Finalized methodology and work plan for assessment to include a detailed schedule of meetings focused on the picture of SSC and development finance flows as part of the broader DFAA exercise (NB where possible the work plan will draw on existing national/sub-national consultative processes and data collection limiting the need for additional meetings);
  • Produce the Initial CAMI Paper.

Contribute to preparation of and write-up of draft DFAA report as agreed with international and national team leader including the drafting of the Case Studies on SSC and development finance (13 - 15 October 2014):

  • Submit draft CAMI report for Lao PDR to AP-DEF Secretariat and DFAA international and national team leaders.

Join the international team leader on 2nd mission to Vientiane including preparation for and presentation of CAMI as part of the DFAA at the relevant Forum:

  • Finalise SSC component of the draft DFAA report and CAMI report and share with DIC/MPI and DFAA Reference Group (16 October 2014);
  • Submit final draft DFAA to MPI, UNDP and ADB (21 October 2014)
  • Prepare and present CAMI report at the Annual RTIM 2014 or its pre-consultation forum (November 2014)
  • Submission of final CAMI report including inputs to a government foreword as necessary and acceptable to AP-DEF Secretariat, DFAA Committee and UNDP.
  • Support national and international team leader to finalise SSC case study as part of the DFAA report for publication (30 November 2014).

Competencies

  • Excellent analytical skills; and
  • Ability to synthesize information from a number of sources;
  • Excellent ability to write clearly, insightfully and persuasively in an accessible, journalistic style;
  • Ability to work independently, against tight deadlines;
  • Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
  • Highest standards of integrity, discretion and loyalty.

Required Skills and Experience

Qualifications:

  • Master's Degree in Economics, Finance, Development Studies, or related area and at least 7 years of relevant professional work experience.

Professional Experience:

  • More than 7 years of work experience in development cooperation in particular South-South Cooperation (SSC), Triangular Cooperation (TrC) and knowledge sharing;
  • Research and data collection experience with a focus on SSC, TrC and knowledge sharing platforms and means as modalities of development cooperation;
  • Knowledge of financial flows as part of SSC, TrC and knowledge sharing;
  • Experience working in Lao PDR or Asia.

Language:

  • Fluency in written and spoken English.

Note:

UNDP is committed to achieving workforce diversity in terms of gender, nationality and culture. Individuals from minority groups, indigenous groups and persons with disabilities are equally encouraged to apply. All applications will be treated with the strictest confidence.

Contract Duration:

The South-South Cooperation Specialist’s assignment will be up to a maximum of 25 days during the period commencing on 22 September 2014 to 1 January 2015 and to be home based but requiring travel to Lao PDR and if needed Bangkok, Thailand.

Provision of Monitoring and Progress Controls:

The International Public Finance Expert will report directly to the Climate Governance and Development Advisor on the work progress.

The DFAA Team led by the will International Public Finance Expert through the National Public Finance Expert will submit the first draft of the final product (DFAA Report: Parts One and Two) to the DIC/MPI who in consultation with the UNDP and ADB would provide quality assurance (technical review) of the report. They would then present he draft DFAA report to the DFAA Committee prior to presenting/validating the same by the wider group of stakeholders. The DFAA Committee, chaired by DIC will have oversight of the process with the drafting, analysis and consultations. The UNDP and ADB as DFAA partners and possibly the World Bank (WB) would also be part of the DFAA Committee.

The Working Groups or Sector Committees (an existing institutional mechanism) that meet on a quarterly basis would provide an additional layer of technical assurance. The draft DFAA report could be reviewed in their Q3, 2014 meeting including validation of data and analysis contained in the report.

Documents to be included when submitting proposal:

Interested individual consultant must submit the following documents/information to demonstrate your qualifications:

  • Cover Letter: Brief motivation letter explaining why the applicant thinks is an outstanding candidate for the job;
  • Financial proposal: indicating lump sum professional fee in USD;
  • Personal CV and/or signed P.11: including past experience in similar projects and the name and contact details of 3 references.

Financial Proposal:

The financial proposal will specify the lump sum professional fee in USD and payments will be made to the Individual Consultant upon completion of the agreed deliverables.  In the event of unforeseeable travel, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between the respective business unit and Individual Consultant, prior to travel and will be reimbursed.

Evaluation:

The award of the contract will be made to the individual consultant whose offer has been evaluated and determined as:

  • Responsive/compliant/acceptable;
  • Having received the highest score out of a pre-determined set of weighted technical and financial criteria specific to the solicitation.

Technical Criteria weight; 70%:

Experience related to services: 70 points;
Expertise & Availability: 30 points;
Financial Criteria weight; 30%.

Only candidates obtaining a minimum of 350 technical points would be considered for the Financial Evaluation.