UNCDF is the United Nations capital investment agency for the world’s least developed countries. With its capital mandate and instruments, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development. UNCDF’s financing models work through two channels: financial inclusion that expands the opportunities for individuals, households, and small businesses to participate in the local economy, providing them with the tools they need to climb out of poverty and manage their financial lives; and by showing how localized investments—through fiscal decentralization, innovative municipal finance, and structured project finance—can drive public and private funding that underpins local economic expansion and sustainable development. By strengthening how finance works for poor people at the household, small enterprise, and local infrastructure levels, UNCDF contributes to SDG 1 on eradicating poverty and SDG 17 on the means of implementation. By identifying those market segments where innovative financing models can have transformational impact in helping to reach the last mile and address exclusion and inequalities of access, UNCDF contributes to a number of different SDGs; UNCDF are currently implementing a project in Lao PDR financed under the UNJP SDG Fund that is supporting the development of the Integrated National Financing Framework (INFF) for Lao PDR. The project Efficiency and Optimization of Lao PDR’s Public Budget to Finance the SDGs Through the National Plan provides the technical framework for the mission as a diagnostic exercise to inform the financing strategy of the current implications and requirements for domestic and foreign direct investments into the Lao economy - Update the previous UNCDF commission legal analysis for investments,
- Determine if local government entities can access capital markets (direct or indirect) as stipulated under the appropriate law,
- Verify the status of local governments as originators and participants in PPPs,
- Verify if local governments can take on external loans issued through development and or commercial banks and finance institutions.
NOTE: Individuals from Legal firms and lawyers specializing in investments and project advisory including legal structuring and financing being registered and practicing in Lao PDR are encouraged to apply OBJECTIVE UNCDF Local Transformative Finance (LTF) practice works to unlock regional and domestic capital to finance productive infrastructures at sub national level and within municipal territories that compliment and support the national development projects and the 9th National Socio-Economic Development Plan. UNCDF’s advisory and financial instruments are ankle to be deployed to originate, financially close and implement economically feasible projects that can be developed solely by the private sector or local governments or via public private partnerships. The objective of the mission is to develop and provide a technical report that updates a previously UNCDF commissioned study to determine the legal base and its current status of promulgation and implementation associated with national and sub national investments and FDI. Within this context, the technical review needs cover: - - An over-view of current investment law(s), to examine their application and known bottlenecks that are being encountered in terms of domestic and external investments;
- Highlight the current government institutional gateways for investments (foreign and domestic)
- Process map of current registration of domestic companies and joint ventures that include a national company
- Provide a brief over-view of the taxation systems – i.e. what taxes are required to be paid by domestic joint ventures, and solely foreign investors, highlight any tax breaks and specify geographical location / limitation (i.e. Special Economic Zones)
- Provide a brief overview and current status of PPP legislation and provide examples (if available) of active PPPs in national and sub national government
- Detail and summarise contents of enacted legislation that permits local governments to apply for commercial loans and usage of local government assets including land as collateral to secure such loans
- Provide a definitive legal guide, referencing associated legislation, for local governments (as legal entities) to form or be shareholders in Special Purpose Vehicles (SPVs), highlight any associate law related to SPVs especially; (i) formation and registration, (ii) restrictions for SPVs to facilitate investments into multiple projects, (iii) share distribution and (iv) SPV responsibilities and legal binding in case of default, and (v) SPV liquidation / closure
- Highlight, in simple form, with reference to associated legislation, procedures and geographical location for arbitration in case of loan default and project failure.
The study should be a maximum of 20 pages with reference materials being provided within an annex and be accompanied with an electronic presentation.
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