Background

Agenda 2030, with its ambition of being transformational, will present significant challenges for governments, in particular for their traditional fiscal planning, budget capacities and performance. The Third International Conference on Financing for Development held in Addis Ababa in July 2015 opened the discussions on how to mobilize the unprecedented amounts of financial resources that will be required to achieve the Sustainable Development Goals (SDGs).

The SDGs will demand both significant increases in capacity and resources as well as changes in the way existing resources are used and prioritized. It is also recognized that financing the SDGs will not happen through global financing agendas alone but instead be built from a bottom-up, holistic country-level approach.

Timor-Leste is in an important phase in its history. Following stabilisation and the consolidation of peace in the 2000s, the country developed a vision of the development path it wants to follow in the Strategic Development Plan (SDP) 2030, which is now entering its second stage. Timor-Leste has used the wealth of its natural resources to build considerable reserves. Yet the financing outlook in the country remains dominated by this resource wealth and the public finance that it supports – other forms of financing, particularly private sector finance, remain small.

The way that the reserves which the country has built are invested will have a critical bearing over the country’s future development path and the extent to which it is able to transition to a sustainable post-oil financing model, reap the benefits of a rapidly growing population, and achieve the vision of the SDP.

Within this context the government of Timor-Leste has commissioned a development finance assessment (DFA) to assess the financing framework that is in place to realise the objectives of the SDP. The purpose of the DFA is to establish evidence and analysis, and introduce policy and institutional reforms for managing the increasing complexity of domestic and international sources of finance for development, in order for Timor-Leste to implement its Strategic Development Plan (SDP).

The DFA and Integrated Financing Solutions supports governments to use the concept of the Integrated National Financial Framework (INFF) to help strengthen policies and actions for mobilizing different types of finance for economic, environmental and social results into a single, coherent framework.

The DFA methodology was developed in response to demand from countries across the Asia-Pacific region and beyond for support for policy and institutional reforms that help governments to more effectively manage financing policy for sustainable development results. It assesses the framework that government uses to manage policy toward all resources, building on the call in the Addis Ababa Action Agenda for integrated national financing frameworks to be ‘at the heart of our efforts’ to realise cohesive nationally owned sustainable development strategies.  An integrated national financing framework is the system of policies and institutional structures that government uses to mobilise the investments necessary to achieve the national sustainable development strategy.

The DFA methodology uses an assessment of the building blocks of an integrated national financing framework and is designed to support government to strengthen the policies and structures it has in place. It is a unique approach in that it is government led, considers all types of financing – public and private, domestic and international – and takes a long-term perspective across government’s financing framework as a whole.

The Development Finance Expert will lead in-country efforts to assist the government to undertake the Development Finance Assessment and be responsible for related analysis, capacity development and policy reform recommendations that emerge from the accompanying Integrated National Financing Framework roadmap.

Duties and Responsibilities

Under the supervision of UNDP the Country Director in and  UNDP Bangkok Regional Hub, the Expert will support the Development Finance Assessment process, analysis and follow-up actions for financing solutions for Timor-Leste.

Development Finance Assessment (Phase 1)

  • Establish a baseline for the building blocks of an INFF.
  • Map the financing landscape covering all types of ¬finance.
  • Assess government’s existing ¬financing strategies, policies and institutional structures.
  • Propose a roadmap for implementation for establishing an INFF, including areas where Integrated Financing Solutions can support DFA follow-up.

A DFA helps a government to understand and adapt its policies, institutions and strategies for the financing challenges the country will face in realising results across the economic, environmental and social dimensions of sustainable development. It supports government to establish and strengthen an integrated national financing framework. The approach and analytical framework for the DFA are guided by the following principles:

1) Use of existing data and policy analysis: The DFA does not involve primary data collection and research, but aggregates existing data and analysis around different flows of development finance. Rather than duplicating highly technical assessments that are beyond the boundaries of the DFA methodology, the DFA draws on existing assessments, data, and studies which are relevant to aspects of the integrated national financing framework and to the objectives of the DFA (see Figure 2.1).

2) Focus on linking finance with results: The DFA develops policy options and institutional reforms for government to consider maximising the use of existing resources to finance their development priorities. As such, the DFA introduces the integrated national financing framework as a practical and conceptual framework that will help governments work through the complexities of managing and effectively using different types of finance to meet national results and the SDGs.

3) An action-oriented diagnostic tool: Establishing an integrated national financing framework is an ambitious long-term endeavour. The DFA is a useful tool that helps government establish a baseline for developing an integrated national financing framework and roadmap for implementing the recommendations emerging from the assessment, drawing on various resources and support available, including that of Integrated Financing Solutions, which is a second phase of support following the DFA.

4) Focus on the role of both the public and private sector in an integrated national financing framework: The DFA is unique among complementary tools and processes related to finance in that it considers, using the INFF concept, the need for coherence between public and private sources of finance in achieving development results.

5) Emphasis on stakeholder engagement: In addition to being a robust assessment tool, the DFA is also a process which brings together different stakeholders and partners, under the overall leadership of the government oversight team, and encourages dialogue and engagement around the concept of an INFF.

A special attention needs to be dedicated to the current elaboration of the MTEF by the Ministry of Finance:

The Medium Term Expenditure Framework (MTEF) provides Government with a tool to manage the complexities between competing policy priorities and budget.

The action will need to be coordinated with the MTEF initiative supported by the European Union. The Second Phase should be built on the findings of the Phase 1.

 

Responsibilities:

As in-country lead on the Development Finance Assessment, the Expert will drive the process including by not limited to the following activities:

  • Initial research building on the original concept note for the Timor-Leste DFA, including initial finance flow data collection and analysis, stakeholder mapping, linkages with other studies and analysis.
  • Ahead of research mission with BRH colleagues, conduct preliminary stakeholder interviews and further research and data collection.
  • Discuss with Government on institutional arrangements, establishment of Oversight Team, scope and timeline for full DFA to be completed.
  • Conduct research on the baseline of the INFF in accordance with the UNDP DFA methodology
  • Support BRH DFA colleagues in the implementation of the DFA process.
  • Organize consultations including support for the research mission meetings, consultations with government, launch and validation workshops.

 

Integrated Financing Solutions  (Phase 2)

  • Conduct more in-depth analysis around specifi¬c fi¬nancing topics and priority areas, linked to the INFF as determined by the DFA roadmap.
  • Implement financing solutions around specific finance  flows or instruments, linked to an INFF in the form of capacity development exercises, policy research, analysis of specific flow and other follow-up actions to be determined.
  • Support government with technical assistance in undertaking policy and institutional reforms to strengthen an INFF.
  • Develop capacity building strategies for strengthening institutions involved in the INFFincluding promoting transparency and accountability.
  • Complete analysis of lessons learned from DFA Phase 1 proces and distill recommendations for DFA in other g7+ countries.
  • Provide inputs into the DFA methodology revisions based on experiences/lessons in Timor-Leste.

Competencies

  • Demonstrating/safeguarding ethics and integrity. 
  • Demonstrate corporate knowledge and sound judgment.
  • Self-development, initiative-taking.
  • Acting as a team player and facilitating team work.
  • Facilitating and encouraging open communication in the team, communicating effectively
  • Creating synergies through self-control.
  • Managing conflict.
  • Learning and sharing knowledge and encourage the learning of others. Promoting learning and knowledge management/sharing is the responsibility of each staff member.
  • Informed and transparent decision making.

Required Skills and Experience

I. Academic Qualifications:

A Master degree in the field of Finance, Economics or other relevant fields.

II. Years of experience:

  • At least 5-7 years of experience in the field of finance, Private Sector Development, budgeting and planning. Previous experience with a development Partner or government is a very strong advantage.
  • Research experience in the areas of public finance, budget review and public expenditure review are required.
  • Experience in country level work rooted in public policy reforms in close collaboration with government.
  • Excellent writing skills required, as demonstrated by previous research/analytical reports on relevant topics.
  • Ability to lead consultations with senior Government officials required.
  • Sound grasp of substantive policy issues in the public finance field.
  • Excellent knowledge of data collection, analysis and statistics tool are essential.
  • Advanced quantitative and econometric skills and experience with related data analysis tools are an advantage.
  • A specific experience in implementing monitoring and evaluation instruments is mandatory. A significant experience in management of Information Systems will be an advantage.
  • Demonstrated ability to engage in strategic analysis, and sectoral analysis.
  • Understanding of and experience in working in Timor-Leste will be an advantage.III. Competencies:

Language requirement:

Fluency in English (written and spoken), and an ability to summarise and present information. 

 

TOR, P11 form and Financial proposal template can be downloaded from this link http://procurement-notices.undp.org/view_notice.cfm?notice_id=41576

Please note that all application documents must be submitted or uploaded in the online applications as one set file document.