Background

The United Nations Capital Development Fund (UNCDF) makes public and private finance work for the poor in the world’s 47 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 three channels: inclusive digital economies, connecting individuals, households, and small businesses with financial eco-systems that catalyze participation in the local economy, and provide tools to climb out of poverty and manage financial lives; local development finance, that capacitates localities through fiscal decentralization, innovative municipal finance, and structured project finance to drive local economic expansion and sustainable development; and investment finance, that provides catalytic financial structuring, de-risking, and capital deployment to drive SDG impact and domestic resource mobilization. By strengthening how finance works for poor people at the household, small enterprise, and local infrastructure levels, UNCDF contributes to Sustainable Development Goal-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 broad diversity of SDGs.

UNCDF is currently implementing a project that is developing financing solutions for supply side capital to enable the Government of Laos to efficiently deliver on their social protection commitments as outlined within the National Social Protection Policy (NSPP).  This project is funded by the UN Secretary General Sustainable Development Goals Fund (UN-SDGF) providing focus for social protection through SDG acceleration and attainment of SDG targets.

Lao PDR is currently implementing an austerity regime in terms of public sector finance. The government is embarked on a broad consolidation of the public budget that is minimising expenditure, optimising revenues whilst at the same time still delivering and maintaining public services. The consolidation is following a strict monetary and fiscal policy that is aimed at reducing budget defects to less that 4% that will enable the government to maintain macro-economic stability and meet existing debt service obligations.

The consultancy opportunity is funded through the above mention project and aims at developing a business plan and fund scenario for the National Social Protection Fund (NSPF) as outlined in the governments National Social Protection Strategy (NSPS). The consultancy will be implemented through a mix of activities to be carried out in Lao PDR working directly with the Ministry of Labor and Social Welfare (MoLSW), the Ministry of Finance (MoF). In addition, the mission will work closely with the SDG Fund UNJP partners ILO and UNICEF for technical reference, NSPP data, and policy advisory.

The UNCDF Portfolio in ASEAN

Historically UNCDF has designed and implemented local development initiatives in a majority of the ASEAN member states both at national and sub-national levels. In particular, in alignment to its mandate, UNCDF has mainly operated in the Least Developed Countries, of the ASEAN region including (1) Cambodia, (2) Lao PDR, and (3) Myanmar.

In Lao PDR UNCDF has been engaged extensively in the government’s decentralization process through the National Governance and Public Administration Reform Programme (NGPAR). The NGPAR process has supported the enhancement of inclusive service delivery and local development via the strengthening public administrations, fostering of inclusive dialogue, and facilitating dialogue between citizens and state for more effective, transparent, accountable and responsive service delivery.

UNCDF is working directly with the MoF within the sphere of the Public Finance Management Reform initiative that is following on from the 2019 National Public Expenditure and Financial Accountability (PEFA) assessment. UNCDF is also working in partnership with the World Bank, the European Union and other Development Partners with the introduction of an IPSAS compliant CoA and a robust IFMIS that is under procurement.

Leveraging this positing and work, UNCDF is supporting the SDG Fund UNJP ?“Leaving no one behind: Establishing the basis for social protection floors in Lao PDR” that is working with the Ministry of Labor and Social Welfare that aims at supporting the government to implement the social protection strategy. This strategy envisions the development of an inclusive social protection system that includes a continually capitalized fund to ensure timely payments are made to all groups covered by the strategy. UNCDF is assisting MoLSW and MoF to establish and capitalize the fund through various technical inputs.

Objective of the Assignment

The main objective of the assignment is to support MoLSW and MoF to develop a selection of fund scenarios, gain MoLSW consensus and further develop the NSPF scenario into a quality business plan. The scenario building will include but not be limited to the inclusion of? various options such as; (i) entity location (internal or as an external entity), (i) use of the funds capital to undertake market investments to sustain the fund, (iii) external or government management and (iv) revenue structures.

The business plan will follow a standard approach that provides but is not limited to; (i) fund description and mandate, (ii) fund size and structure to enable sustainability, (iii) financial modelling, (iv) fund management principles, (v) end – user products and (vi) operational legality including jurisdiction of the NSPF, the latter being Social Protection coverage limitations.

The consultancy will develop a marketing prospectus for the fund in collaboration with MoLSW, ILO and other relevant development partners applying the general findings of the capital markets assessment that will be completed by UNCDF commissioned consultancy in relation to capitalization of the NSPF.

Within the framework of the project, the following UNCDF informations are available as reference materials for this consultancy;

1. UN joint project document
2. National Social Protection Strategy
3. Capital Markets Appetite Assessment for capitalization of the NSPF; and
4. A legal scan of the investment laws in Lao PDR. ILO will provide technical inputs in terms of the scope of the NSPF intended beneficiaries, standard unit payment costs, and suggested cap of the NSPF.

Duties and Responsibilities

The international consultant, with support from a national consultant, will specifically work with the designated focal department, MoLSW, MoF Budget Department (Ministry of Finance), in coordination with the Department of Fiscal Policy and Law, and will have the following shared duties and responsibilities:

1. Establish with agreement from UNCDF National Programme Specialist a dedicated workplan inclusive of time bound milestones for deliverables;
2. Consult with government officials from MoLSW, MoF and ILO and other development partners to gain inter-ministry consensus for the formulation of the NSPF scenarios;
3. Develop in partnership with ILO the scenarios providing a policy brief for MoLSW and MoF;
4. Organise and implement a policy briefing workshop to present the scenarios and findings and select a suitable variant to develop the NSPF Business Plan (NSPF-BP);
5. Consult with MoLSW, MoF and ILO and agree a format for the NSPF Business Plan (preliminary skeleton);
6. Generate the NSPF Business Plan working through daily consultations with MoLSW and MoF, meting jointly with the UNCDF National Programme Specialist and ILO on (at minimum) a bi-weekly basis. The NSPF Business Plan will include at a minimum;
   • Financial Modelling;
   • Risk Modelling;
   • Fund Structure;
   • Fund Principles of Sustainability;
   • Fund Principles for Inclusivity;
   • Scope of Beneficiaries and Payments;
7. Organize a de-briefing event in Lao PDR presenting the business plan;
8. Generate a prospectus for the NSPF for external investment search and outreach;
9. Provide UNCDF with a short two-page mission completion report;
10. The consultant will work under the guidance of the UNCDF National Programme Specialist and RTA and adhere to all applicable UNCDF procedures providing a dedicated and professional service at all times.

Deliverables

The consultant will deliver the following deliverables within the framework of the mission:

1. Submission or work plan indicating timebound milestone deliverables and list of required meetings and consultation to enable the work to be completed;
2. A short report illustrating the options (scenarios) for the NSPF consisting of a maximum of 10 pages which is presented through a workshop / dialogue event;
3. A comprehensive business plan (investor standard) for the NSPF comprising at a minimum but not limited to the following sections; (i) Executive Summary, (ii) Opportunity (Policy, Service Delivery, SDGs, and life enhancing benefits), (iii) End-User Markets (include employers, employees, and citizens to be covered under the NSPF), (iv) Execution, (v) Management Structures, (vi) Financial Model, (vii) annexes i.e. legal drafts etc. NOTE – the NSPF Business Plan must be succinct and developed in plain English to enable translation to Lao language. (20-page document approx.);
4. Generate an Investment Prospectus for the NSPF that is suitable for print (4 pages). The investment prospectus need be developed on the basis of the NSPF business plan being inclusive of info-graphics related to SP beneficiaries and the financial model. Present the NSPF Business Plan and Prospectus through workshop event
5. Provide UNCDF a mission completion report (4 pages)

Monitoring and Progress Control

The consultant will work under the supervision of the UNCDF National Programme Specialist and will work closely with the Regional Technical Advisor for the entirety of the mission. The Regional Technical Advisor will provide overall direction and guidance of the consultancy and approve key outputs and deliverables. In addition, the consultant will on a weekly basis meet and coordinate with UNCDF National Programme Specialist in Lao Country Office for all necessary programming, operations and logistics.

Consultancy fees will be paid upon: (i) submission of Certificate of Payment form (ii) review, approval, acceptance of output for each deliverable by the UNCDF National Programme Specialist (iii) authorization of payment disbursement from Regional Technical Advisor.

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.

Deliverable 1, Mission Planning: (i) Work Plan for mission and setting of agreed delivery milestones; (ii) Organization of a Lao PDR based kick-off meeting for the mission for key leading counterparts and selected relevant stakeholders (30%)

Deliverable 2, Technical reviews of Government Debt Financing: (i) NSPF Options paper—Submission of 10-page options paper inclusive a recommended option that provides the base for establishing the fund in terms of positioning within or external to government, management, fund structure, and scope of operations (10%); (ii) NSPF Business Pan—Comprehensive, succinct standardized Business Plan for NSPF with suitable anneses. The NSPF Business Plan needs to consist of a 20-page document, separate exececutive summary, financial model (excel) including risk analysis and an implementation section (25%); (iii) NSPF Investor Prospectus: Generation of a quality investor prospectus including infographics (4-page document) (15%);

Deliverable 3, Policy Advisory for NSPF Capitalization and Fund Structure: (i) Dissemination Event—Delivery of a summary of the NSPF Business Plan and Investment Prospectus and handing over to MoSWL (10%); (ii) Submission of a 4-page end of mission report (10%)

Competencies

• Possesses a comprehensive knowledge of fund and or business development with a proven ability to develop succinct and high-quality business plans;
• Has the ability to develop and formulate financial models and risk assessments in the context of either funds or businesses;
• Has general understanding and capacity to enable the sustainable structuring of funds that use blending options for recurrent costs and capitalization;
• Able to undertake peer reviews and analysis of business plans and finance models;
• Able to prepare a fund structure that possibly blends the following; public sector budget, GO bond issue, ODA, and an investor grade tranche;
• Able to developed standardised policy papers (short version) for government consumption;
• Has a proven track record in generation of policy drafts or briefs to government;
• Has proven successful work record in South East Asia.

Required Skills and Experience

Education:     Minimum Master’s Degree - Finance related /Public Finance/MBA

Experience and Skills:

• Minimum 10 years of professional experience with at least 5 years of working within a business development environment preferably within a banking sector (investments and business loans) with funds or with business/fund start-ups. 
• Knowledge of capital markets financing, owned knowledge of capital markets and investors in ASEAN +3 is mandatory;
• Proven professional track record related to business development planning is required;
• Proven track record working with government sector is required;
• Good communication skills; sensitivity and willingness/flexibility to respond to client’s needs is essential;
• Consultancy / work experience in Lao PDR or the GMS countries will be considered as an asset

Application Process

Interested individual consultants must submit the following documents/information to demonstrate their qualifications. Proposers who shall not submit below mentioned documents or information will not be considered for further evaluation.

• When applying for this consultancy position, please apply with your official name as shown in the government issued identification document (e.g. passport and/or driver license). Contract award is subject to this verification;
• Summary statement of competencies in relation to the TOR
• Curriculum Vitae or Completed P11 Personal History Form with names and current contacts of 3 referees (available from http://sas.undp.org/documents/p11_personal_history_form.doc)
• Confirmation of interest and Financial proposal: 

Under section E of the Offerer’s letter to UNDP Confirming Interest and Availability for the Individual Contract (IC) Assignment, please choose to indicate “An all-inclusive daily fee”. The form can be accessed through the link below:

https://popp.undp.org/_layouts/15/WopiFrame.aspx?sourcedoc=/UNDP_POPP_DOCUMENT_LIBRARY/Public/PSU_%20Individual%20Contract_Offerors%20Letter%20to%20UNDP%20Confirming%20Interest%20and%20Availability.docx&action=default

• Earliest Availability

Individual Consultants are responsible for ensuring they have vaccinations/inoculations when traveling to certain countries, as designated by the UN Medical Director. Consultants are also required to comply with the UN security directives set forth under dss.un.org  If the consultant is over 65 years old, UNCDF reserves the right to require full medical certification and clearance from the consultant’s physician prior to commencing the travel.

Please include all documents into one file while submitting your application.

Evaluation Process

Applications will be rated on both technical and financial submissions.  The following selection method will be used:  Highest rated proposal using the combined scoring method, which assigns the weight distribution between the technical and financial proposals.  The weight distribution shall be 70% technical and 30% financial. 

Step I: Longlisting/Shortlisting

Applications will be screened and only applicants meeting the following minimum criteria will be shortlisted:

• Minimum Master’s Degree - Finance related/Public Finance/MBA;
• Minimum 10 years of professional experience with at least 5 years working within a business development environment preferably within a banking sector (investments and business loans) with funds or with business/ fund start-ups;

Step II: Technical Review of CVs by Desk Review

UNCDF will conduct a desk review to produce a shortlist of candidates by evaluating the following criteria with the corresponding points (100 points)

• Minimum 10 years of professional experience with at least 5 years working within a business development environment preferably within a banking sector (investments and business loans) with funds or with business/ fund start-ups; (30 points)
• Knowledge of capital markets financing, owned knowledge of capital markets and investors in ASEAN +3 is required (30 points)
• Proven professional track record related to business development planning is required (30 points)
• Proven track record working with national government sector; (10 points)

Only the applicants achieving 70% of the points will be considered as technically qualified and will be reviewed further for financial evaluation.

Step III: Financial Evaluation

The following formula will be used to evaluate financial proposal: Lowest priced proposal/price of the proposal being evaluated x 30%.

Step IV: Award Criteria:

The contact shall be awarded to the applicant whose offer have been evaluated and determined as:

• Responsive/compliant/acceptable vis-à-vis the requirements of the TOR and the project operating environment; and
• Having received the highest score out of a pre-determined set of weighted technical (70%) and financial (30%) criteria.

Individual consultants and individuals employed by a company or institution are welcome to apply. 

Any individual employed by a company or institution who would like to submit an offer in response to a Procurement Notice for IC must do so in their individual capacity (providing a CV so that their qualifications may be judged accordingly).  If the company or institution that employs them will charge a management fee, the said amount must be incorporated in the financial proposal that the individual will submit.  No further changes to reflect additional costs shall be accommodated by UNCDF at the point of awarding the contract.

Women candidates or women-owned businesses are strongly encouraged to apply.

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.

Copyright

All products and reports related to the mission will be provided to UNCDF and be subject to associated copyrights. The contractor will not use, without prior permission of UNCDF, any the materials or data produced during the mission for any other purpose than furnishing UNCDF with a project delivery. Any use or reference to the information contained within the presented mission documents must be prior clarified and approved by UNCDF and clearly reference UNCDF as the source.

Additional institutional arrangements

• Any travel required under the assignment needs to be agreed and pre-approved by UNCDF regional technical advisor. All the travel cost will be reimbursed by UNCDF according to UNCDF rules and regulations.

• The consultant is expected to own and use his/her own computer equipment during the assignment.