UNDP Jobs - 70932- Finance and Loan Consultant, BMS/OFRM

Finance and Loan Consultant, BMS/OFRM

Location :

New York, UNITED STATES OF AMERICA

Type of Contract :

Individual Contract

Starting Date :

15-Mar-2017

Application Deadline :

07-Mar-17 (Midnight New York, USA)

Post Level :

International Consultant

Duration of Initial Contract :

66 days working days within 3 months

Languages Required :

English

Expected Duration of Assignment :

66 days working days within 3 months

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. UNDP does not tolerate sexual exploitation and abuse, any kind of harassment, including sexual harassment, and discrimination. All selected candidates will, therefore, undergo rigorous reference and background checks.

Background

Objective:

The purpose of this procurement exercise is to contract an individual consultant who can analyze and recommend the most appropriate financing instruments and risk management tools, to formulate the changes required to UNDP’s financial framework, policies, guidance and procedures, and to draft the legal financing instruments that enable UNDP to broaden its portfolio.

Background:

The United Nations Development Programme (UNDP) is the global development network of the United Nations system that is on the ground in 177 countries, with its Headquarters in New York, USA.

The Bureau for Management Services (BMS) is a central Bureau tasked with the development of corporate strategies, policies, tools and systems in key cross-cutting management areas. Drawing on sound analytics and a risk-management approach, BMS supports the achievement of development results through management advice, innovative business solutions, and other corporate services in line with international best practices and evolving needs and expectations of development partners.

BMS also ensures policy adherence in operations management within UN Rules & Regulations, safeguarding UNDP’s accountability vis-à-vis Member States and other stakeholders.

Approximately US$1.7 trillion flows from the developed world to the developing world from a diversified set of actors and with equally distinct motivations, ranging from purely philanthropic to market-rate return investments. Given this context, innovative financing models for development assistance holds out the potential to extend the reach and effectiveness of the aid. UNDP seeks to broaden its portfolio of financing instruments to include a combination of performance-based grants, revolving funds, loans (to and from UNDP) and guarantees, to finance development activities and help attract other capital for blended finance.

Being a United Nations entity, with a distinct legal framework based upon international law, there are a number of changes that need to be made to allow the broadening of the portfolio. These include the establishment of an enhanced financial framework with scope to cater for other types of financial instruments other than the traditional grant modality. The enhanced financial framework will complement existing systems and regulations, and address loan collection challenges within UNDP’s legal framework.

As UNDP broadens the portfolio of financial instruments, changes will be required to UNDP’s existing financial frameworks, including its Financial Regulations and Rules, Internal Control Framework and related policies and procedures. Notwithstanding the need for these changes, given UNDP’s requirements to avoid cross-subsidization between sources of funds, any borrowing must be contained to fund select project activities, and be fully sustainable from the cash flows generated from those project activities.

Duties and Responsibilities

The primary tasks of the individual contractor are to analyze and recommend the most appropriate financing instruments and risk management tools, and to formulate the changes required to UNDP’s financial framework, policies, guidance and procedures, and to draft the legal financing instruments, that enable UNDP to broaden its portfolio of financing instruments to include:

The issuance of loans and guarantees by UNDP to its partners that implement its development projects;
For UNDP to take on unsecured debt finance to fund select development activities, a significant change from its current financial frameworks which prohibit debt finance.

A key part of the recommendations will be the framework within which UNDP manages the overall portfolio of loans/guarantees taken and loans/guarantees issued, in order to ensure that risks are managed, including liquidity. This includes, but is not limited to the following activities:

Loans and loan guarantees issued:

Formulate the lending framework for UNDP to issue loans and loan guarantees, including establishing the financial model, investment objectives, eligibility criteria, success criteria, expected returns, risk management mechanisms, repayment criteria, management and governance structure, etc.;
Formulate UNDP’s policies, guidelines and procedures for loans and loan guarantees, including the initial assessment of new opportunities, credit analysis, due diligence, issuance, management and repayment;
Analyze the financial, legal and fiduciary issues, and draft all necessary legal arrangements with funding partners and with loan/loan guarantees recipients, including standard template(s);
Define the prudential rules for loan and loan guarantees issuance; recommend the composition of the various governance bodies (Investment Committee, Audit Committee, etc.); and prepare the terms of reference for the management and governance structure.

Loans and guarantees received:

Formulate the framework for UNDP to take on loans and loan guarantees, to provide capital for onward lending to implementing partners to fund development activities. This includes establishing the financial model, borrowing objectives, criteria for eligibility, terms, refinancing requirements, costs, risk management mechanisms, repayment criteria, management and governance structures, etc.;
Formulate UNDP’s policies, guidelines and procedures to take on loans and loan guarantees, including preparing the business case, initial assessment, financial analysis, repayment, and management (including monitoring);
Analyze the financial, legal and fiduciary issues, and draft all necessary legal arrangements with funding partners, including standard template(s);
Define the prudential rules to take on loan and loan guarantees issuance; recommend the composition of the various governance bodies (Investment Committee, Audit Committee, etc.); and prepare the terms of reference for the management and governance structure.

Corporate Monitoring and Risk Management:

Formulate the framework for UNDP to govern the portfolio of loans/guarantees taken and loans/guarantees issued, to ensure adequate risk management, including alignment of cash flows; recommend the composition of the various governance bodies (Investment Committee, Audit Committee, etc.); and prepare the terms of reference for the management and governance structure with appropriate roles and responsibilities;
Formulate UNDP’s policies, guidelines and procedures to support the governance and oversight of the portfolio, including key monitoring techniques, risk indicators and escalation protocols, including standard template(s).
Formulate the framework to link the financial instruments portfolio risk management to the overall Risk Management Policy and the Corporate Accountability Framework

In undertaking these tasks, the Individual Contractor will work under the supervision of the UNDP Office of Financial Resources Management (OFRM), in close collaboration with UNDP’s Legal Office, and under the guidance of the Project Coordinator. Consultation with wider bureau within UNDP will also be necessary.

Expected outputs and deliverables:

The analysis, recommendations and results of the above tasks, including draft policies, guidance, procedures and legal templates, are to be incorporated in the final deliverable of a final detailed report This report shall include:

Analysis, Recommendations and Results most appropriate financing instruments and risk management tools, including draft policies, guidance, procedures and legal templates based on the scope work detail above;
Lending framework for UNDP to issue loans and loan guarantees;
Framework for UNDP to govern the portfolio of loans/guarantees taken and loans/guarantees issued;
UNDP’s policies, guidelines and procedures to support the governance and oversight of the portfolio, including key monitoring techniques, risk indicators and escalation protocols, including standard template(s);
Framework to link the financial instruments portfolio risk management to the overall Risk Management Policy and the Corporate Accountability Framework.

Competencies

Innovation -ability to make new and useful ideas work
Leadership - Ability to persuade others to follow
People Management -ability to improve performance and satisfaction
Communication - ability to listen, adapt, persuade and transform, strong presentation skills

Technical/Functional

Time Management -ability to work on multiple opportunities across products and sectors while working to deadlines and managing time effectively.
Partnership and networking -ability to build the relations and to develop a network of relevant external contacts, as well as internally across different teams.
Analytical and research skills -including the ability to analyze company reports, sector data, economics and relevant political events
Financial analysis- credit analysis skills and ability to analyze company`s financial statements and make commercial assessments.

Change management - ability to contribute to setting up administrative structures, financial product design and propose adequate processes for loan and guarantee management in UNCDF

Required Skills and Experience

Academic qualifications:

Advanced/Master’s degree or equivalent in Finance, Economics, Corporate Finance, Business Administration, Accounting or other related field.
CFA or ACA would be an asset.

Years of experience:

At least 7 years of relevant experience within an international financial environment, preferably in development finance institution.
Experience in public/private partnerships, debt financing and investment project development, especially in projects targeting developing countries.
In-depth understanding of UNDP, its financial policies and procedures;

Language:

Excellent written, presentation and oral communication skills in English
Note: Education, minimum experience and language qualifications are considered minimum requirements and only applications meeting these will be included in the technical evaluation.

Application Procedure

The application package containing the following (to be uploaded as one file):

Online application with brief description of why the Offer considers her/himself the most suitable for the assignment; and
Personal CV or P11, indicating all past experience from similar projects and specifying the relevant assignment period (from/to), as well as the email and telephone contacts of at least three (3) professional references.

Note: The above documents need to be scanned in one file and uploaded to the online application as one document.

Shortlisted candidates (ONLY) will be requested to submit a Financial Proposal.

The financial proposal shall specify a total lump sum amount, and payment terms around the specific and measurable deliverables of the TOR. Payments are based upon output, i.e. upon delivery of the services specified in the TOR, and deliverables accepted and certified by the technical manager.
The financial proposal must be all-inclusive and take into account various expenses that will be incurred during the contract, including: the daily professional fee; cost of travel from the home base to the duty station and vice versa, where required; living allowances at the duty station; communications, utilities and consumables; life, health and any other insurance; risks and inconveniences related to work under hardship and hazardous conditions (e.g., personal security needs, etc.), when applicable; and any other relevant expenses related to the performance of services under the contract.
In the case of unforeseeable travel requested by UNDP, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between UNDP and Individual Consultant, prior to travel and will be reimbursed. In general, UNDP should 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 their own resources.
If the 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 a 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.

The Financial Proposal is to be emailed as per the instruction in the separate email that will be sent to shortlisted candidates.

Evaluation process

Applicants are reviewed based on Required Skills and Experience stated above and based on the technical evaluation criteria outlined below. Applicants will be evaluated based on cumulative scoring. When using this weighted scoring method, the award of the contract will be made to the individual consultant whose offer has been evaluated and determined as:

Being 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 where technical criteria weighs 70% and Financial criteria/ Proposal weighs 30%.

Technical evaluation - Total 70% (700 points):

Criteria 1. Advanced/Master’s degree or equivalent in Finance, Economics, Corporate Finance, Business Administration, Accounting or other related field. CFA or ACA would be an asset. Maximum 50 points.
Criteria 2. Additional years of experience in an international financial environment, preferably in development finance institution – maximum 200 points;
- From 7-10 years – 100 points
- More than 10 years – 200 points
Criteria 3. Experience in public/private partnerships, debt financing and investment project development, especially in projects targeting developing countries – maximum 250 points;

Criteria 4. In-depth understanding of UNDP, its policies and procedures - maximum 200 points.

Please note that only shortlisted candidates will be contacted.

Candidates obtaining a minimum of 70% (490 points) of the maximum obtainable points for the technical criteria (700 points) shall be considered for the financial evaluation.

Financial evaluation - Total 30% (300 points)

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

Contract Award

Candidate obtaining the highest combined scores in the combined score of Technical and Financial evaluation will be considered technically qualified and will be offered to enter into contract with UNDP.

Institutional arrangement

The consultant will work under the guidance and direct supervision of the Deputy Chief Finance Officer/OFRM/BMS/UNDP and will be responsible for the fulfilment of the deliverables as specified above.

The Consultant will be responsible for providing her/his own laptop.

Payment modality

Payments are based upon output, i.e. upon delivery of the services specified above and deliverables accepted and upon certification of satisfactory completion by the manager.

Annexes (click on the hyperlink to access the documents):

Annex 1 - UNDP P-11 Form for ICs

Annex 2 - IC Contract Template

Annex 3 – IC General Terms and Conditions

Annex 4 – RLA Template

Any request for clarification must be sent by email to cpu.bids@undp.org

The UNDP Central Procurement Unit will respond by preparing a Questions and Answers Document that will be published in our Procurement Notice Site No. 35994 with written copies of the response, including an explanation of the query without identifying the source of inquiry.