Background

Background

At a time of unprecedented global challenges, sustainable finance is a driving force for social, economic, and environmental resilience. Domestic and international public and private finance are essential for recovery from the COVID-19 pandemic and for the achievement of the Sustainable Development Goals (SDGs). Rallying private sector participation and strengthening private and public sector networks for achieving sustainable and inclusive economic growth has taken new urgency. National resource mobilization and increased commitments from private investors and enterprises will be needed for recovery from the impact of the pandemic, while maintaining progress towards the achievement of the SDGs by 2030.

Achieving the Sustainable Development Goals (SDGs) by 2030 requires at least US$2.5 trillion annually. The COVID-19 pandemic brought an additional shortfall of USD 1.7 trillion for developing countries in the financing they would need to keep on track on the SDGs, making the total annual need for SDG financing USD 4.2 trillion in developing countries. Accounting for over 60% of GDP and 90% of jobs. In line with this large responsibility, innovative business models have been emerging to couple business-as-usual with positive impact. In the recent years, impact investing and SDG-anchored investments have been recognized as an active way of catalyzing increased financial resources for development by engaging the private sector to generate social and environmental impact. 

SDG Impact is a Sustainable Finance Hub (SFH) flagship initiative designed to accelerate progress towards the SDGs with game changing tools and insights that unlock private capital and direct it to concrete SDG-enabling opportunities with a focus on developing countries. The initiative focuses on eliminating barriers and driving integrity for SDG-enabling investment at scale. It does so by developing global practice standards for SDG enabling investment, market intelligence on localized SDG investment opportunities, and by unlocking private capital in specific countries to achieve the SDGs, aligned with national priorities. SDG Impact focuses on three main pillars that address the main barriers to SDG achievement: (i) Impact management, (ii) Impact intelligence and (iii) Impact facilitation.

In this connection, UNDP Iraq in collaboration with UNDP Istanbul International Center for Private Sector in Development (IICPSD) and the SFH SDG Impact seek the services of a consultant to support the research, analysis, synthesis, and consultations for SDG Financing in Iraq which will provide data and insights for the private sector to contribute to sustainable development goals in the country.

Rationale

Despite significant growth globally, the impact investing space in the Middle East and North Africa (MENA) region remains in its infancy, with only 2% of global impact capital allocated to the region in 2020. At the same time, the region has been experiencing an influx of capital for impact investments growing at a compound average growth rate of 19% according to the GIIN 2020 Annual Survey. Improvements in impact investing in the region are strengthened by the growing number of incubators, financial authorities, and local investors who have increasingly become more aware of sustainable financing. Moreover, venture capital funding exceeded USD 1 billion during 2020, a first in the region’s history. Increased activity of venture capital firms who are aligning investment strategies with impact principles presents a promising trend for the impact investing ecosystem in MENA.

Iraq demonstrates considerable urgency to channel private sector funds and efforts towards pressing development needs. The country’s economy predominantly relies on extractive industries, with oil rents constituting approximately 39.6% of the GDP. The need for economic diversification, particularly towards more sustainable sectors is clear. Moreover, following years of conflict with destabilizing forces such as the Islamic State, Iraq’s infrastructure is in dire need of recovery. In 2018, the World Bank has estimated the cost of reconstruction and recovery in the country to be near USD 88.2 billion. Housing is among the areas that requires a substantial amount of funds to be mobilized. Iraq is also among the Middle East’s most populous countries, hosting a great potential for local agri-food market development. Yet, the current investment environment demonstrates important challenges. Iraq ranks 172 out of 190 countries in the World Bank’s Ease of Doing Business Index. The Index evaluates the local enabling environment for establishing and conducting business in different country contexts. Iraq ranks low in metrics such as starting a business, enforcing contracts, completing tax filings and access to credit. Net FDI inflows to the country remain negative. The COVID-19 crisis has reversed an upwards trajectory of FDI that Iraq was experiencing in recent years. To address such challenges and improve its business environment, Iraq has recently initiated a reform process. In 2020, the Government adopted the White Paper for Economic Reform to re-evaluate the economy’s structural issues. Overall, there is existing momentum and policy initiatives to incubate an enabling ecosystem for private sector investments and clear demonstrable needs towards which such investments are to be allocated.

Promoting SDG investing in Iraq could become instrumental in helping diversify the country’s economic activity and investment landscape, while unlocking international SDG-focused private capital. In efforts to establish an enabling environment for such targeted investments, it is important to take a snapshot of the current impact investing landscape in the country and identify impact investment opportunities to attract international and domestic investors. Moreover, as high-risk perception and limited access to market intelligence are among the main deterrents before investments in least developed and developing country contexts, increasing access to information and building a pipeline of bankable projects remain essential to mobilize private sector momentum towards SDG financing in such setting.

Objective

Accelerating finance for the SDGs and impact-oriented businesses in Iraq is underpinned by the need for economic diversification as well as Covid-19 recovery and reconstruction efforts. Increasing capital inflows with conducive ecosystem for innovative and impact financing in Iraq accentuates the need for accessible market intelligence and improved advocacy efforts.

UNDP Iraq, IICPSD, and SFH SDG Impact pursue a holistic approach to creating an enabling environment for SDG investments and attracting investors towards the SDG-anchored investment opportunity areas trough four activities:

• Impact Investing Ecosystem Study
• Implementation Support for the SDG Investor Map
• Project Pipeline Development and Innovative Financing Mechanisms
• Investor Convening.

Four activities are placed to tap into private sector investment opportunities and unlocking private capital for the SDGs in Iraq with the following objectives assigned:

• Implementation support for the SDG Investor Map and the impact intelligence activities by identification of priority sectors, subsector, and target regions, and to establish actional data points of SDG-factored business models to help domestic and international private investors to identify investment opportunities and business models that will accelerate the achievement of SDGs and support recovery from COVID-19 pandemic, as aligned to national development priorities.

• Synthesis of research, data collection, and validation meetings to highlight potential areas for impact-oriented growth, detailing and engaging with the relevant stakeholders, and to identify challenges and intervention areas to foster capacity and support the Impact Investing Ecosystem Study in Iraq.

• Structuring data collection and screening of businesses and activities for Project Pipeline Development for SDG enabling investments in Iraq.

• Impact facilitation and mobilizing private sector capital for the SDGs by bringing private and public parties together around SDG gaps.

Duties and Responsibilities

Scope of Work

The consultant will work with UNDP Iraq, IICPSD and SFH SDG Impact for SDG financing in Iraq which builds on engaging and enabling investors to direct capital towards the achievement of SDGs by providing research in terms of impact and market intelligence and through advocacy and impact facilitation initiatives.

The overall responsibility of the national consultant, who is sought under this TOR will be to support UNDP’s teams with context advisory on SDG investment needs and opportunities in Iraq and facilitating inputs from key public and private stakeholders in the country.

The scope of work will encompass:

1. Conduct the research and synthesis of the SDG Investor Map according the 8-step methodology in the SDG Investor Map Handbook including support to desk research (e.g., review of various documents) and analysis across multiple steps of the SDG Investor Map methodology (sector analysis; subsector analysis; subregion analysis; investment opportunity area analysis; etc.) and lead and participation in structured interviews with local, regional, and international investors, public and private stakeholders to deepen learnings from desk research and source additional insights on the bankability and viability of long-listed IOAs. Please see insights into the SDG Investor Map methodology and results from other countries on the SDG Investor Platform.

Assist the Government with the establishment of a high-level Advisory Committee to facilitate preparation of the Iraq SDG Investor Map and implementation of follow-up actions after completion in order to operationalize the market intelligence, including through a launch, investment facilitation and pipeline building.

The standard SDG Investor Map steps are:

• Collect information on national sustainable development needs and policy priorities.
• Synthesize needs and policies into a set of national priority sectors.
• For each sector, collect information on sectoral SDG needs and sectoral investment policies.
• Synthesize needs and policies into a set of priority subsectors.
• Identify the subregions most aligned to each subsector.
• Synthesize information into a set of priority subregions.
• With this context, identify potential business models that could tackle sub-sectoral and subregional SDG needs whilst capitalizing on policy and investment momentum.
• For each business model, add a range of supporting information that can help investors to perform due diligence and eventually shape impactful deals.

2. Provide support to the technical execution of the Impact Investing Ecosystem Study in Iraq which is a deep dive into the impact investing ecosystem of the country by detailing relevant stakeholders, highlighting high potential areas for growth through extensive research, and identifying challenges and recommendations to foster capacity.

3. Work with UNDP Iraq, IICPSD and SFH to streamline an SDG-anchored Project Pipeline in Iraq based on the findings and market intelligence presented by the SDG Investor Map and Ecosystem Study.

4. Work with UNDP Iraq, IICPSD and SFH in support of the advocacy efforts by means of improving outreach to investors, development finance institutions and other multilateral organizations during the organization of impact facilitation events such as Investor Convenings and high-level Policy Dialogues.

Deliverables

The schedule of deliverables is expected to be as follows:

Reporting

The successful consultant will work under the close and joint technical supervision from the UNDP Iraq head of economic diversification pillar, SFH SDG Impact and the Advisory Committee under the leadership of the Ministry. She / he will work closely with the IICPSD team to provide inputs and insights into the SDG Investor Map and Impact Investing Ecosystem Study development process as well as the above-outlined operationalization processes.

• The consultant will report to the core team for day-to-day supervision and management of this assignment. He/she will also be expected to actively liaise with other relevant stakeholders as may be relevant.

• The consultant with help from the core team will take responsibility for setting up and facilitation meetings, including consultation and validation sessions.
• Both in person and virtual tools may be used for stakeholder engagement and collection of information, ensuring compliance to the COVID-19 regulations.
• The consultant must have own facilities including computers and facilitate own access to internet, transport and organize own logistical arrangements as necessary.

Duration of Work and Duty Station

• The assignment is for a period of 12 months, ending in December 2023.
• The development of the SDG Investor Map and the Impact Investing Ecosystem Study will span over a period of 6 months. The facilitation of the SDG-anchored Project Pipeline build-up and Investor Convenings and Policy Dialogues will span over a period of 6 months that follow the finalization of the impact intelligence with the SDG Investor Map and Ecosystem Study. The National Consultant is expected to invest a total of 60 person days.
• The assignment will be carried out both physically and on virtual platforms. The National Consultant is expected to work from Baghdad throughout the assignment with possibility of travelling to other locations in Iraq.

Competencies

• Demonstrating/safeguarding ethics and integrity, by modelling the UN/UNDP's values and ethical standards. 
• Promotes the vision, mission, and strategic goals of UN/UNDP.
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability.
• Demonstrate corporate knowledge and sound judgment.
• Self-development, initiative-taking.
• Acting as a team player and facilitating teamwork.
• Facilitating and encouraging open communication in the team, communicating effectively
• Creating synergies through self-control.
• Managing conflicts.
• Learning and sharing knowledge and encourage the learning of others.
• Informed and transparent decision making.

Required Skills and Experience

The National Consultant must have the requisite, proven experience and capacity to undertake similar or relevant activities linked to investment mapping or research in related field in the private sector, including with a focus on impact consideration of potential investment opportunities in Iraq and the region.

Specifically, he/she must possess the following qualifications:

• BSc degree in the field of Statistics, Finance, Economics, Business studies or other relevant fields (Master or PhD will be added advantage). 
• Knowledge of the SDGs and of different approaches driven by the UNDS to accelerate private sector participation in the 2030 Agenda, especially in Iraq and the region.
• Knowledge of market context, business developments, national development needs, and economic and political priorities in Iraq and the region.
• Strong networks with national and regional public and private stakeholders relevant for driving additional private capital into national development priorities.
• Familiarity with mixed methods research, particularly the navigation of statistical databases.
• Fluency in Arabic and English.
• 3 - 5 years of experience in strategy consulting and/or economic research, with a focus on Iraq and similar contexts.

Evaluation Method and Criteria:

Individual consultant will be evaluated based on the following methodology:

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

• Responsive/compliant/acceptable, and
• 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%

* Financial Criteria weight 30%

Only candidates obtaining a minimum 70% of the total technical points would be considered for the Financial Evaluation.

Technical Criteria (70%):

• Education qualification (10%).
• 3-5 years of experience in strategy consulting and/or economic research, with a focus on Iraq and similar contexts (50%)
• In-depth knowledge of market context, business developments, national development needs, and economic and political priorities as well as familiarity with key public and private stakeholders requiring consultations (10%).

Financial Evaluation (30%):

The following formula will be used to evaluate financial proposal:

p = y (µ/z), where

p = points for the financial proposal being evaluated

y = maximum number of points for the financial proposal

µ = price of the lowest priced proposal

z = price of the proposal being evaluated

Documents to be included when submitting the proposals:

Interested consultant must submit the following documents/information to demonstrate their qualifications in one single PDF document:

• Personal CV or P11, indicating all past experience from similar projects, as well as the contact details (email and telephone number) of the Candidate and at least three (3) professional references.
• Brief description of why the individual considers him/herself as the most suitable for the assignment, and a methodology, on how they will approach and complete the assignment.
• Financial Proposal along with the Duly accomplished Letter of Confirmation of Interest and Availability (must use this template: download here Offeror’s letter to UNDP confirming interest and availability and Financial Proposal) , that indicates your availability as well as the all-inclusive fixed total contract price, supported by a breakdown of costs, as per template provided. If an Offeror is employed by an organization/company/institution, and he/she expects his/her employer to charge a management fee in the process of releasing him/her to UNDP under Reimbursable Loan Agreement (RLA), the Offeror must indicate at this point, and ensure that all such costs are duly incorporated in the financial proposal submitted to UNDP. 

Note: the above documents should be grouped together into one (1) single PDF document as the application system only allows to upload maximum one document. **Failure to submit the above-mentioned documents may result in disqualification.

The short-listed candidates may be contacted, and the successful candidate will be notified.

Contract & General Terms and Conditions, for information:  

• Annex 1 - IC Contract Template 
• Annex 2 - IC General Terms and Conditions 
• Annex 3 - RLA Template (if consultant wishes to be recruited through their employer) 

All materials developed will remain the copyright of UNDP Iraq.  UNDP Iraq will be free to adapt and modify them in the future.