Background

UNCDF is the UN’s capital investment agency for the world’s 48 least developed countries (LDCs). 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. This last mile is where available resources for development are scarcest; where market failures are most pronounced; and where benefits from national growth tend to leave people excluded.

UNCDF’s financing models work through two channels: savings-led 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. UNCDF financing models are applied in thematic areas where addressing barriers to finance at the local level can have a transformational effect for poor and excluded people and communities.

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 with a focus on reaching the last mile and addressing exclusion and inequalities?of access. At the same time, UNCDF deploys its capital finance mandate in line with SDG 17 on the means of implementation, to unlock public and private finance for the poor at the local level. By identifying those market segments where innovative financing models can have transformational impact in helping to reach the last mile, UNCDF contributes to a number of different SDGs and currently to 28 of 169 targets.

“The District Development Fund” (DDF) mechanism that comprises of formula based performance capital investment grants and operational block grants was first introduced in 2006 as a pilot system developed by the Ministry of Home Affairs (MoHA) with technical and financial support from UNCDF. Since 2006 various evolutions of the management and allocation of the DDF have been witnessed that include providing new criteria for supporting local government operations through the introduction of a parallel operational block grant system and climate resilience planning and capital fund allocation.

The DDF is operated and managed, including reporting, through 6 internal guidelines that have been initially developed by the Governance and Public Administrative Reform project management team (GPAR-PMT) with UNCDF technical support. From the implementation, the DDF mechanism has been seen as a successful and useful tool. However, the guidelines have not been internally developed to enable their conversion into ministry procedures and system (Rules of Business) hence they do not provide for an official treasury based transfer mechanism. Therefore, the DDF mechanism has not been adopted and integrated into government system after 10 years. The existing guidelines, being developed externally to support the piloting of the DDF consist of; (i) Allocation and Usage of DDF-BBG (Climate Resilience included in 2014), (ii) District Investment Planning Guidelines for the Usage of DDF-BBG, (iii) DDF-OEBG Implementation Guidelines, (iv) Performance Assessment Manual (Districts), (v) Financial Management and Budget Execution Procedure and (vi) Procurement Manual for District administrations.

Objective of the assignment

With the on-set of a new legislative base this Terms of Reference (TOR) sets out the objective and expectations for an independent consultancy mission to support the Government of Lao PDR to streamline and align the sub-national capital expenditure fiscal transfer mechanism “The District Development Fund” (DDF) to align to current national development policy and the promulgation of new legislation related to governance and public finance management in Lao PDR.

With the promulgation of new legislation covering; (i) Public Financial Management and (ii) sub national governance a need exists to consolidate, streamline and update the DDF guidelines to form a single document that is to be converted into an internal rule of business by GPAR-PMT and MoHA. The new guideline needs be developed that ensure compliance with the new legislation base related to Public Financial Management (PFM) and sub-national governance in addition to matching the fund allocation formula and criteria to current national development strategies and policy such as the Budget Norms. New legislation that the DDF is required to align to being (i) Law on State Budget 2015, (ii) Law on Government 2015, (iii) Law on Local Administrations 2015, (iv) Law on People’s Provincial Assembly 2015. In addition, the new DDF guideline needs to be fit for purpose (i.e. operationally achievable) and act as an implementing complementary to the national development plan and policy of the government.

The update of the DDF guideline and its transformation into internal MoHA Rules of Business is timely in that it coincides with a national Public Financial Management Reform (PFMR) program that is undertaking a Public Expenditure and Financial Accountability PEFA) Assessment. It is anticipated that MoHA and GPAR-PMT can position the new DDF guidelines to be incorporated within the PEFA and the envisaged new Rules or Business for Sub National Budget Formulation and Management.

Mission Scope

The scope of the mission will comprise of three inter-linking steps to be completed as a total input of 30 days that comprises of 27 days (including weekends) in country and 3 days home based;

Step 1: Produce an inception mission report (including work plan) based on the desk review of the reference documents provided by UNCDF prior to arrival in-country (3 days home based).

Step 2: Facilitate inter-ministerial consultations (2-day meeting) highlighting the key points related to streamlining and consolidating the DDF guidelines. The consultant, for the purpose of deliverables will develop and provide 2 comprehensive presentation(s) that; (i) provide an introduction to the consultation laying out the rationale and new legislative and regulatory base that need be considered and (ii) provide a post consultation summary of findings and consensus based points to support the formulation of the new DDF manual.

Step 3: Based on the key points on DDF upgrade agreed with GPAR National Programme Manager and the Inter-Ministerial Committee formulate a consolidated DDF manual / document by revising, omitting non-relevant guidelines and including relevant process maps and pro-forma templates for use by national and sub national and civil servants to allocate, manage and monitor the sub national fiscal transfer for capital investments and the Operational Block Grants.

Duties and Responsibilities

The consultant will be supported by the national consultant and work under the overall supervision and guidance of the National Programme Manager of the GPAR-GIDP, and of the UNCDF Technical Specialist. The main counterparts for the mission will be the Inter-Ministerial Committee on DDF upgrade and the GPAR-PMT.

The objective and scope of the consultancy mission is to consolidate and formulate a single DDF manual that upgrades the existing DDF guidelines in alignment to new legislating and development policy. Where applicable, being covered under new legislation or government guidelines, specific operational areas covered by the existing set of guidelines can be omitted and upgraded with reference being made to other applicable regulatory documents. For example, allocation formula and Budget Norms for grants developed by the Ministry of Finance need be included in the DDF manual. The consultant will be provided with a matrix illustrating the current legislative base and amendments foreseen in the streamlining process.  In addition, the UNCDF country team will provide all necessary legislation and regulatory documents that need be considered.

The manual is required to be formulated in a style that can be; (i) easily translated into Lao national language, (ii) be made available in the public domain, (iii)  made operational, i.e. include templates where necessary and apply simplified procedures to minimize transaction costs, (iv) be fit for purpose in that it can be understood and implemented by sub national administrations, (v) provide a robust monitoring mechanisms and performance assessment system that can be conducted internally by government, and (vi) be used by the GPAR-PMT and the inter-ministerial Committee to develop an official rule of business for managing and monitoring sub-national fiscal transfers for capital expenditure. The manual should clearly illustrate the decision making and transfer processes using standard time-based process maps (flow charts) and be no more than 30 pages in total inclusive of pro-forma templates.

The key parameter for this ToR is for the consultant to work in full partnership with the inter-ministerial committee for the DDF upgrade that has been formed by the Government of Lao PDR specifically for this task.

Duration of Assignment, Duty Station and Expected Places of Travel

Duration: 30 Days (that includes 3 days homebased and 27 days in Lao PDR, the latter including weekends)

Duty Station and possible places of travel: The mission duty station is Vientiane Lao PDR with a short mission to a nearby province and 2 associated districts. All in-country travel* will be agreed upon with the consultant according to the agreement of the proposed work plan.

Note: *This will be an all-inclusive contract. UNCDF will support all in-country travel costs and make necessary travel arrangements for the consultant as appropriate. DSA related to the field mission will not be paid separately and will be included in the lump sum payment as agreed within the contract. The consultant is expected to use his/her own equipment during and after the assignment.

Deliverables

The consultant will deliver the following: -

Deliverable 1. Work plan and short scoping report (3 pages) based on preliminary desk review including indicative timings for; round 1 consultation event, field mission, and round 3 consultation events to aid UNCDF in-country planning and support.

Deliverable 2. DDF upgrade presentation in MS PowerPoint with draft speaking notes that draws together the overall scope for the DDF consolidation and streamlining exercise and general content shape of the manual. The presentation should include a matrix highlighting legislative changes that impact upon existing DDF internal guidelines and business process maps to streamline and simplify the sub-national fiscal transfer system in alignment to the current State budget law and its associated decrees and instructions.

Deliverable 3. A fit for purpose DDF grant administration and management manual (a simple and executable document) that is formatted in alignment to a standard internal rule of business template. The manual comprising of various articles for the administration, approval, management and monitoring of sub national fiscal transfers for capital investments and operational block grants need also include templates for grant allocation and awards etc. and system process maps. The manual must use simplified language and be no more than 30 pages in length including templates, forms and process maps so as to make assure its alignment with national policy and system and usability at sub national level.

All reports will be prepared in MS Word Format and necessary data / chart files (MS Excel) will be attached to the report in addition for the 2 consultation events the consultant will submit a MS PowerPoint Presentation. In addition to submitting the deliverable reports and presentation to the UNCDF Team in Lao PDR, the consultant will send Soft copies of all produced documents to UNCDF Regional Technical Advisor, Bangkok via email. The language of communication and reporting will be English.

Provision of Monitoring and Progress Control

The consultant, during the entire period of the assignment, will work in close consultation with the UNCDF Technical Specialist and Programme Specialist in Lao PDR. The primary responsibility for monitoring progress of the mission will be vested in the UNCDF Regional Technical Advisor Bangkok.

Competencies

• Proven capacity of designing inter-governmental fiscal transfer system and local government grants mechanisms;
• Solid knowledge and understanding of public expenditure management reform practices that include sub national level reform initiatives for capital investments involving; planning and budgeting, allocation of funds, budget execution, capital investments, financial management reporting and, performance assessment;
• An understanding of political economy and context of decentralization processes at various stages in developing countries;
• Excellent English writing, analytical and reporting skills;
• Ability to manage workload with minimum supervision and collaborate with a wide range of colleagues and partners;
• Excellent interpersonal skills, including ability to work with a wide range of actors in a multi-cultural context.

Required Skills and Experience

Education

·         Advanced Degree (Masters or equivalent) in public administration, public finance, or related fields.

Experience

• Minimum 5 years of relevant professional Public Financial Management experience of working in developing countries;
• Proven track record or working with local governance and local development finance systems that incorporates fiscal decentralization in Asia;
• Proven track record of providing advisory on local government budget support, grants and fund management, performance based grant allocation and the design of discretionary grant facilities for sub-national governments;
• Illustrated professional capacity (5 years) of national and sub national capital investment planning, budgeting, (public expenditure and financial management);
• Sound understanding of political capital context in Lao PDR;
• Experience working in multi-culture and diverse environmental settings;
• Previous experience working in the ASEAN is an advantage;
• Previous work experience with UNCDF or UNDP considered an advantage.

Languages

• Fluent in English;
• Good communication skills; gender sensitivity and willingness/flexibility to respond to client’s needs.

Estimated duration of contract

The estimated duration of contract is 30 working days to be completed by 01 April 2018.

Consultant Presence Required on Duty Station/UNCDF Premise

Intermittent

Terms of Payment

The following terms of payment based upon the above-mentioned deliverables will be applicable for this Terms of Reference and associated mission. Payments will be based upon a percentile of the contracted lump sum for each area as tabulated. The payment will only be made up on satisfactory completion and submission of the assignment and deliverables.

Payments will be made in tranches based on the following percentages and milestones.

• 1st Payment: 30% % of total contract value will be paid after submission of Delivery 1 (D1);
• 2nd Payment: 30%of total contract value will be paid after submission of Delivery 2 (D2);
• 3rd Payment: 40 % of total contract value will be paid after submission Delivery 3 (D3).

Application

The application should contain:

• Cover letter explaining why you are the most suitable candidate for the advertised position Please paste the letter into the "Resume and Motivation" section of the electronic application.
•  Completed and signed UN Personal History Form (P11) for Individual Contracts (IC).

Note: this is a re-advertisement for those who already applied do not need to apply (applications will be kept for review)

Evaluation Process

Individual consultants will be evaluated based on the Cumulative Analysis methodology [weighted scoring method], where the award of the contract will be made to the individual consultant whose offer has been evaluated and determined as:

• Responsive/compliant/acceptable;
• Having received the highest score out of a pre-determined set of technical and financial criteria specific to the solicitation.

The formula for the rating of the Proposals will be as follows:
Rating the Technical Proposal (TP): 70%
TP Rating = (Total Score Obtained by the Offer / Max. Obtainable Score for TP) x 100
Rating the Financial Proposal (FP): 30%
FP Rating = (Lowest Priced Offer / Price of the Offer Being Reviewed) x 100
Total Combined Score:
(TP Rating) x (Weight of TP, e.g. 70%)+ (FP Rating) x (Weight of FP, e.g., 30%)
Total Combined and Final Rating of the Proposal

Technical Criteria weight 70% includes:

• Professional experience -35 points;
• Competencies, past work related to the assignment - 35 points;
• Academic qualification - 20 points;
• Geographical working experience (proven) - 10 points.

Total maximum obtainable score for Technical proposal = 100 points. Only candidates obtaining a minimum score of 70 points under Technical evaluation will be considered for the financial evaluation.

Other

Completed PH 11 Form will be required at the time a consultant signs an Individual Contract (IC) or his/her employer, if employed, signs a Reimbursable Loan Agreement (RLA) for work associated with this assignment. UN Personal History form (UN PH11) can be downloaded from: here http://sas.undp.org/documents/P11_Personal_history_form.doc

General Terms and Conditions for ICs is provided here: http://www.undp.org/content/dam/undp/documents/procurement/documents/IC%20-%20General%20Conditions.pdf.

UNCDF 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.