Background

UN Capital Development Fund (UNCDF)

UNCDF provides investment capital and technical support to both the public and the private sector. It provides capital financing -- in the forms of grants, soft loans and credit enhancement – and the technical expertise to unleash sustainable financing at the local level. 

Financial Inclusion Practice Area

UNCDF’s work on inclusive finance seeks to develop inclusive financial systems and ensure that a range of financial products are available to all segments of society, including low income men and women, at a reasonable cost, and on a sustainable basis. UNCDF supports a wide range of providers (e.g. microfinance institutions, banks, cooperatives, money transfer companies) and a variety of financial products and services (e.g. savings, credit, insurance, payments, and remittances). UNCDF also supports newer delivery channels (e.g. mobile phone networks) that offer tremendous potential for scale.

SHIFT Programme

The SHIFT Programme seeks to transition at least 6 million low-income individuals, micro-entrepreneurs, and small and medium businesses, including women and young people in the ASEAN region, from using informal financial mechanisms to more formalized financial services by the year 2020.  It seeks to achieve this through applying a market systems approach to financial inclusion.

Remittances

Remittances are an important source of development finance. In 2015, remittance transfers to developing countries are estimated at USD440 billion, exceeding official development assistance (ODA) and foreign direct investment.

In September 2015, Heads of State and Government adopted a new and ambitious global development agenda, the Sustainable Development Goals (SDGs). Its successful implementation will require an equally ambitious financing framework. Under the new development framework, all sources of finance are expected to make a contribution to sustainable development; they are complements and not substitutes for each other.

The Addis Ababa Action Agenda of the 3rd International Conference on Financing for Development recognizes the role of remittances in sustainable development. Remittances are vital in improving the livelihoods of millions of people in the developing world. These contribute to the welfare, food security, and health of recipient families, and support families to invest in local businesses, creating jobs and accelerating local economic development.  Remittances also play an important role at a time of increased volatility, helping people to cope with economic and environmental shocks and crises. The regular flow of remittances provide a lifeline and safety net for people exposed to food security crisis.

In 2014, G20 leaders recomitted to reduce the average cost of transferring remittances to five per cent* and agreed to a G20 plan to facilitate remittance flows. In 2015, each G20 member developed a National Remittance Plan to strengthen efforts to facilitate remittance flows.  Within the framework of SDGs, more countries, both sending and receiving countries, will need to equally scale efforts towards reducing transfer costs, by promoting competition of money transfer operators and encouraging innovation.  This is particularly critical for LDCs and other developing where remittances contribute significantly to GDP and foreign exchange reserves. The role of technology and other innovations can enable individuals, even in the most rural areas, to be engaged in the formal financial sector. Interoperability of financial systems and institutions, and harmonisation of cross-border payments infrastructure, could also help overcome remittance transfer challenges.

(In 2010, G20 leaders committed to help reduce the average cost of transferring remittances from ten to five per cent by 2014. The global remittance average cost reached a record low by November 2014 at 7.99 per cent).

Objectives

The Consultant will closely with UNCDF’s Financial inclusion Practice Management in NY and with the SHIFT Programme team to undertake assessments, studies and develop remittance programming frameworks for UNCDF and for its partners that have requested support.

Duties and Responsibilities

Key work areas will include:

  • Scoping and assessments;
  • Discussions with stakeholder and partners;
  • Programming framework and action plandevelopment.

Scoping and assessments:

  • Global scoping and assessment: Building on UNCDF’s initial scoping and review of “promoting Remittances for Development” and UNCDF’s on-going initiatives (MAP, MM4P etc…), identify what could be UNCDF’s strategic positioning in the area of remittances. On that basis, explore potential partnership / engagement with other donors / partners in that area (IFAD, WB, foundations, bilaterals etc…);
  • ASEAN assessment: Undertake a full assessment of the remittances in the ASEAN, including the demand/ supply market, the regulations and the  issues in the cross-border remittances market in the ASEAN region. Specifically, identify how to maximise the potential of remittances to accelerate financial inclusion in the ASEAN region that can translate into welfare benefits of households, women, and local economies. The analysis will be used to contribute to policy development through the ASEAN Working Committee on Financial Inclusion, ASEAN Working Group on Payment Systems, and other national level policy processes;
  • Australian remittance corridors: Analyse technological and innovative solutions to address remittance costs and flows, and determine their applicability to the Australian remittance market. Specifically, identify how to increase the flow of remittances from Australia to six developing countries: Fiji, Samoa, Tonga, Vietnam, Philippines, and Sri Lanka. The solutions identified will focus on initiatives the Australian Government could take forward both domestically, and/or in partnership with other countries and the private sector to support the economic development and welfare of developing countries.

Stakeholder and partners consultations:

  • Undertake meetings and discussions with major stakeholders and partners to validate scoping, assessments and analysis, and secure inputs for the development of programming frameworks. This will include a combination of key informant interviews over skype and phone, perception surveys, and meetings.

Programme development:

  • Building on the initial review by UNCDF on “Promoting Remittances for Development Financing”, develop a UNCDF global programming document and approach  on Remittances and Financial Inclusion, positioning UNCDF in that area and proposing a concrete strategy of intervention in select LDCs.

ASEAN - develop concrete set of costed actions to:

  • Facilitate changes at the financial sector policy level at regional and country levels through ASEAN forums and national processes;
  • Develop and demonstrate innovative cross-border business models and partnerships that support market development;
  • Engage non-financial sector ministries and sector-support actors around the eco-system of remittance markets to deepen impact of remittances on welfare and local economic development.

Australian remittance corridor - Recommend practical, innovative technological remittance solutions for the Australian Government, partner countries and the private sector, drawing on global practices focused on:

  • Recommendations to reduce remittance costs and increase flows from Australia to each of the six countries, such as cashless Remittance services, and other business models;
  • Innovative remittances players and start-ups with unique platforms and capabilities globally for adaptation in the Australian remittance market.

Volume of work: 

  • An estimated volume of work for the individual consultant for one year is expected not to exceed 220 days.

Final Deliverables & Outputs:

  • Global: UNCDF strategy for engagement in the area of remittances defined through a short concept note . Donors and partners identified to support that strategy;
  • Global: UNCDF programmatic engagement in the area of remittances finalized through a global program document;
  • ASEAN remittance market analysis report (30-40 pages with data annexes);
  • ASEAN remittance market analysis power-point deck;
  • Proposed action-plan for formal ASEAN level policy groups to facilitate remittances and financial inclusion (15 pages);
  • Concept note to test 6 innovations in remittance business models in ASEAN (10 pages);
  • Australian remittance corridor report (25 pages).

Contract duration:

  • One year, with possibility of renewal for a second year based on performance.

Duty Station and Travel

NY, with mission travels to Asia and possibly Europe as follows:

Destinations with estimation of number of tirps and estimation of total number of days: (Thailand, 2 trips), (Vietnam, 1 trip), (Fiji,1 trip), (Solomon Islands, 1 tirp), and possibly Europe. Overall estimated number of days is around 30 days in total.

The schedule of travel will be negotiated with the consultant according to the requirements of the programme. Mission travels shall be arranged by UNCDF Office in accordance with UNCDF travel rules and regulations.

UNCDF does not accept travel costs exceeding those of an economy class ticket. Should the IC wish to travel on a higher class, he/she should do so using his or her own resources.

Furthermore, the Individual Consultant who is at the duty station at the time of hire is ineligible for travel to join, and who remain at the duty station after contract completion is ineligible for repatriation travel.

For 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.

Provision of Monitoring, Progress Controls & Payments:

The consultant will work under the direct supervision of the Director Financial Inclusion Practice and SHIFT Programme Manager.Payment will be made on periodical basis in accordance with number of days worked and upon satisfactorily achieved deliverables. All payments are subject to the clearance and approval of the direct supervisor. Final payment shall require a signed performance evaluation of the consultant.

Competencies

Corporate Competencies:

  • Demonstrates integrity by modeling the UN’s values and ethical standards and acts in accordance with the Standards of Conduct for international civil servants;
  • Advocates and promotes the vision, mission, and strategic goals of UNCDF;
  • Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
  • Treats all people fairly without favoritism.

Functional Competencies:

  • Knowledge about the UNCDF programmes would be an advantage;
  • Strong analytical and writing skills and track record in producing relevant reports and other material.

Required Skills and Experience

Education:

  • A Master’s degree ideally combining exposure to international affairs and international finance / economics.

Experience:

  • At least 4 years of professional experience in the area of international Financial consulting and or remittance field.

Language:

  • Strong oral and written skills in English.

Other Qualifications:

  • Positive performance references;
  • Ability to work independently without the need of close supervision;
  • Ability to consult, discuss and negotiate with others in a professional manner.

Ability to facilitate discussions and conflicting view points.

Application process:

Interested individuals must submit the following as proposals in order to demonstrate their qualifications: (NOTE: the system does not allow multiple uploads of document. Applicants must make sure to upload all documents in one PDF file).

  • Updated CV;
  • A letter indicating why the candidate considers himeself/herself suitable for the required consultancy. This could be indicated online;
  • Filled in and duly signed letter of Intent including a financial proposal which can be downloaded from the following link: http://procurement-notices.undp.org/view_notice.cfm?notice_id=26874;
  • Two signed references or three references contact details;
  • Samples of your work you consider to be the best and most relevant examples of reports. (not to exceed 2 examples).

 Incomplete applications will not be considered. Please make sure you have provided all requested materials.

Individual consultants will be evaluated based on the following methodology:

  • Preliminary Evaluation - Step I: Screening;
  • Technical Evaluation Weight - 70% x (Step II: 70 Points + Step III: 30 Points = 100 Points);
  • Financial Evaluation Weight - 30%  = Step IV.

Step I: Screening

Applications will be screened and only applicants meeting the following minimum criteria will progress to the pool for shortlisting:

  • Submission of CV with two signed references or three references contacts;
  • Samples of original works by the applicant;
  • A Master’s degree ideally combining exposure to international affairs and international finance / economics;
  • At least 4 years of professional experience in the area of international financial consulting and or remittance.

Step II: Shortlisting by Desk Review: (70 Points)

UNCDF will conduct a desk review to produce a shortlist of candidates and technically evaluate candidates as follows:

  • 20- Education/Qualification;
  • 30- Functional competencies for assignment (analytical and writing skills);
  • 20- Experience (years of experience in International affairs, and experience with financial and specifically remittance systems.

As applicable, only the first top 4 ranked applicants achieving minimum 49 points shall be invited for an interview.

Step III: Interview: (30 Points)

A competency-based Interview shall be conducted for the top 4 shortlisted candidates.

Only candidates obtaining a minimum of 21 points in the interview will be considered as technically qualified and will be reviewed further for financial evaluation.

Step IV: Financial Evaluation: 30%

The following formula will be used to evaluate financial proposal:

Lowest priced proposal/price of the proposal being evaluated x 30%.

Award Criteria

The contact shall be awarded to the applicant whose offer have been evaluated and determined as:

  • Responsive/compliant/acceptable; and
  • Having received the highest combined weight (technical proposal & Interview) 70% + financial 30%.

The successful candidate will be asked to fill a P11 form. The P11 form can be downloaded at the following web address:  http://sas.undp.org/documents/p11_personal_history_form.doc;