Invitation for Expression of Interest Debt Management Unit Economic Social and Sustainable Development Directorate

Transcription

1 Invitatin fr Expressin f Interest Debt Management Unit Ecnmic Scial and Sustainable Develpment Directrate 1. Overview The Secretariat, thrugh the Debt Management Unit (DMU), implements Cmmnwealth Secretariat s capacity building prgramme in debt management in its member cuntries. The debt management assistance prgramme includes a range f plicy advisry services and tw in-huse develped and maintained specialized debt management applicatins namely; Cmmnwealth Secretariat Debt Recrding and Management System (CS-DRMS), and HORIZON. The prgramme facilitates prmting prudent and efficient debt management practices, reducing lng-term debt servicing cst, lwering risks f debt distress, imprving access t finance and prmting debt sustainability t member cuntries. The debt management prgramme is essentially fcused n three main thematic areas: Plicy Advice: Prviding plicy advice and assistance n public debt management issues; Capacity Building: Strengthening the institutinal capacity and expertise in member cuntries in debt management peratins and specialized systems; and Suite f Debt Management Sftware: Prvisin f the Cmmnwealth Secretariat suite f debt management sftware fr debt recrding & management and an analytical tl. 2. Objectives The Secretariat is seeking t establish a pl f specialists t supprt the delivery f the debt management prgramme. The specialist pl will be established fr an initial perid f three years; after which it will be reviewed and assessed fr extensin. The pl will be used t engage services f specialist cnsultants fr the specific shrt-term assignments as per the needs emerging frm time t time. 3. Scpe f Wrk DMU engages the services f specialists frm time t time in the fllwing fcus areas: (a) plicy advisry assistance t member cuntries in the areas f institutinal arrangement, legal framewrk, develpment f the dmestic debt market and cntingent liability management and; (b) capacity building in the suite f the Secretariat s debt management applicatins fr debt recrding, management and analysis. The terms f reference fr different areas f cnsultancies are as fllws:

2 3.1 Institutinal Arrangement and Legal Framewrk fr Public Debt Management Plicy advisry assistance is made available t the member cuntries n setting up f legal framewrk and institutinal arrangement that supprts effective debt management and sund debt management practices Terms f reference The plicy advisry assistance cvers the fllwing: Review f the legal, institutinal and structural framewrk fr debt management in a cuntry with particular fcus n the interdepartmental rles in public debt management. Recmmend measures t strengthen institutinal and legal framewrk fr debt peratins t ensure effective and efficient debt management. Prepare, at the end f the missin, a cmprehensive reprt n findings with summary f recmmendatins and a rad map f refrms. Drafting f public debt management Act Develp prcedures, guidelines and regulatins fr peratinalizing Public Debt Management Act. Review f the institutinal and functinal structure fr cash and debt management (interdepartmental rles in debt management) and assessment f the structure against the recmmended sund practices; Based n the findings f the abve; design a frward lking debt management structure (frnt, middle and back ffice) that wuld supprt effective public debt management in the client cuntry; Recmmend ptimal structure fr Debt Management Unit including: - Number f persns required t adequately staff the Unit; - The requisite skillset required f fficers in the Unit, including jb descriptin fr all staff psitins, cncmitant cmpensatin packages and scenaris fr career paths within the Unit; - Terms f Reference fr the Debt Management Unit and its rganizatinal chart; - The gvernance framewrk and cntrl prcedures fr the peratin f the Debt Management Unit; - Wrkflw assignments; and - Training prgramme fr the Unit. Review f institutinal arrangements fr managing n-lending and gvernment guarantees; Assessment f the Gvernment cash management prcess and recmmendatins fr the way frward n integrating cash and debt Recmmendatins t adpt prudent debt management plicies and strategies with its cnsequent inter-linkages with macr-ecnmic framewrk and dmestic debt market develpment; Technical Expertise Prspective candidates shuld pssess the fllwing expertise: Sund knwledge f public debt management cncepts and gd understanding f the best practices f legal and institutinal arrangements fr debt At least 7 years f practical experience gained wrking in the area f public debt management.

3 Demnstrated experience f prviding advisry assistances t the gvernments n setting up f legal and institutinal arrangements in the area f public debt Practical experience in develping prcedures, guidelines and regulatins fr public debt Experience and understanding f the wrking and functins f a public debt ffice. 3.2 Develpment f Dmestic Debt Markets DMU assists member cuntries in the develpment f a deep and rbust gvernment securities market t facilitate imprved availability f secured and sustainable finance t the svereigns at the reduced cst and risk Terms f reference The assignment wuld invlve undertaking a cmprehensive study f the dmestic debt market in the member cuntry and prviding a rad map fr refrms. The study wuld interalia cver the fllwing areas: Macr-ecnmic envirnment (mnetary plicy, fiscal plicy, exchange rate plicy, inflatin rate, real rate f return, absrptive capacity), Status f public debt (size, cmpsitin, maturity, creditrs, debt sustainability, institutinal and legal arrangement, etc.) Mney Market Cnditins (Instruments [T Bills and ther mney market instruments like call, reps], liquidity cnditins, Central Bank peratins, Shrt-term yield curve) Primary Market Status (Instruments, strategy and issuance mechanism fr T bills and bnds, Cash management peratins and linkages with primary market, primary market yield curve, Benchmark securities develpment, Transparency in Primary market) Primary Dealers and related issues (Rle, Agreement, Perfrmance, etc.) Investr Base Analysis (investr types, hlding f securities, investr appetite, investr cnfidence, investment regulatin acrss institutinal investr, prudential regulatins n banks and financial institutins) Secndary Market Cnditins (trading system and cnventins, trading and transactins prcedures, market intermediaries, trading turnver and pattern f varius investr class, liquidity, secndary market yield curve, price discvery f yield curve and its linkages with ther interest rates) secndary market architecture, Financial regulatin and supervisin Market Infrastructure issues (Securities settlement infrastructure, registry system, depsitry arrangement, dematerialized securities, securities settlement prcedure, clearing and payments system) Regulatry Issues (Market regulatins, investr prtectin, taxatin) Prepare at the end f the missin a cmprehensive reprt n findings with summary f recmmendatins and a rad map f refrms fr the develpment f lcal currency bnd market Technical Expertise Prspective candidates shuld pssess the fllwing expertise: Sund knwledge f public debt management cncepts and theries

4 At least 7 years f relevant practical experience in dmestic debt market develpment Gd understanding in at least three f the fllwing areas in cntext f dmestic debt market develpment: (a) mney market issues, (b) macr-ecnmic envirnment (c) primary issuance plicy (d) secndary market issues, (e) investr base issues, (f) market infrastructure and regulatry issues. 3.3 Svereign Cntingent Liability Management DMU assists member cuntries in the develpment f debt management strategies t facilitate analysis and risk quantificatin f svereign cntingent liabilities in supprt f effective and sustainable fiscal risk management Terms f reference The advisry assistance inter-alia cvers the fllwing: Recmmend measures t strengthen institutinal and legal framewrk fr svereign cntingent liabilities t ensure effective and efficient fiscal risk management. Develp prcedures, guidelines/plicies and cntribute t the frmulatin f regulatins fr peratinalizing effective svereign cntingent liability management. Analysis f macr-ecnmic envirnment (mnetary plicy, fiscal plicy, exchange rate plicy, nminal and real interest rates, yield curves). Analysis f relevant financial institutin regulatry capital requirements (bth at cuntry level as well as internatinal such as Basel). Advice t member cuntries n the structuring f lan and svereign guarantee agreements s as t minimise peratinal and credit risks. Prvide capacity building t member cuntries acrss varied surces f svereign cntingent liability including (amngst thers): legal risks, pensins risk, natural disasters, debt and ther frms f svereign guarantees, public, private partnerships. Prvisin f quantitative/analytical systems (via Excel r ther sftware slutins) fr mdelling and risk assessment f svereign cntingent liabilities. Prvisin f quantitative and systems assistance in testing cntingent liability risk rutines in the Meridian debt management system. Develpment f risk rating mdels fr assessing the credit risk f state-wned entities, private cmpanies (including micr, small, medium and large), sub-svereign entities and retail brrwers. Analysis f lans and svereign guarantees, legal and ther databases cntaining details f cntingent liabilities f member cuntries. Prepare at the end f a missin a cmprehensive reprt n findings with summary f recmmendatins and a rad map f refrms fr the effective management f svereign cntingent liabilities Technical Expertise At least 7 years f practical experience gained wrking in the area f public debt management with at least 3 years expsure t svereign cntingent liabilities. Gd wrking knwledge f lan and guarantee agreements.

5 Demnstrable experience f credit risk rating methdlgies and their applicatin t different types f bligrs. Demnstrable experience f market, peratinal, legal and ther key frms f risks inherent in the management f svereign cntingent liabilities. Presentatin skill and experience in delivering face t face training. Skills t carry ut quantitative risk analysis f varied types f cntingent liabilities. Practical and strng theretical knwledge f yield curves and macr-ecnmics. Gd wrking knwledge f underwriting prject financing lans. Gd wrking knwledge f structuring public, private partnerships including minimum revenue guarantees and ther cntingent liabilities embedded in PPPs Demnstrable experience f the use f stchastic analysis in the mdelling f financial and macr-ecnmic parameters. Knwledge f public sectr fiscal management. Gd wrking knwledge f financial mdelling and Excel. Gd reprt writing skills. A university degree in finance/ecnmics (with a strng quantitative emphasis) r equivalent acceptable will be an advantage. 3.4 Capacity Building in Debt Management Systems Training is targeted acrss the entire debt management functins f back, middle and frnt ffices. The trainings are run at cuntry, reginal r Pan-Cmmnwealth levels fr duratin f up t tw weeks. The bjective f such training wrkshps is t impart necessarily skills t debt managers fr them t cnfidently use the applicatins t supprt effective debt management. The number f cuntry delegates participating in such wrkshps generally ranges frm arund 20 t 30. Currently the training will be based n CS-DRMS and later extended t the new Cmmnwealth Secretariat debt management system ( MERIDIAN ) Terms f reference The training cvers the fllwing aspects: Debt management cncepts, prcesses and structures; Interpreting Lan Agreements and cmpleting data entry sheets; Recrding financial instruments and transactins; Recrding f market data and ther macrecnmic data; Managing cmplex instruments including multi-tranche, multi-currency lans and restructuring agreements; Recrding and executin f liability management ptins; Generating and interpreting debt reprts; Using features in the debt management system t analyse the debt prtfli. The cnsultant will assist in the preparatin f the wrkshp prgramme, prepare PwerPint presentatins and hands-n exercises and facilitate wrkshp sessins Technical Expertise Prspective candidates shuld pssess the fllwing expertise: At least 7 years f practical experience gained wrking in the area f public debt

6 Knwledge f debt management cncepts, theries and internatinal standards fr debt data disseminatin; Up t date infrmatin n the characteristics f lan instruments ffered by multilateral and bilateral creditrs; Gd knwledge f varius types f securities issued by the gvernments; Gd wrking knwledge f the different mdules f CS-DRMS r MERIDIAN; CS-DRMS r MERIDIAN related cnsultancy with respect t training and in-cuntry assistance; Gd presentatin skills and experience in delivering face t face training; A university degree in ecnmics r equivalent acceptable will be an advantage. 3.5 Capacity Building in Hrizn Hrizn is a public debt analytical sftware released by the Secretariat in This sftware is targeted at debt fficers f the middle and frnt ffices fr designing brrwing strategies and elabratin f annual brrwing calendars. Hrizn training will be run at cuntry, reginal r Pan-Cmmnwealth levels fr a duratin f up t tw weeks. The number f participants in such wrkshps will range frm arund 20 t Terms f reference The wrkshp cvers the fllwing aspects: Debt management cncepts, prcesses and structures; Financial characteristics f debt instruments; Key risk indicatrs fr public debt management cmputatin and applicatin; Analysis f Fixed incme securities Par, zer and frward rates; pricing f bnds; Yield curve estimatin cmparative analysis f ppular fitting methdlgies; Deterministic and stchastic scenari analysis; Designing deterministic scenaris in Hrizn; Using Hrizn t analyse prtfli based n different scenaris; Develping alternative debt management strategies in Hrizn; Risk analysis framewrk cst-risk trade-ff; Deterministic risk analysis in Hrizn; Annual brrwing plan Sund practices and develping annual brrwing plan in Hrizn; Liability Management Optins Sund practices and analysis in Hrizn. The cnsultant will assist in the preparatin f the wrkshp prgramme, prepare PwerPint presentatins and hands-n exercises and facilitate wrkshp sessins Technical Expertise Prspective candidates shuld pssess the fllwing expertise: A degree in Ecnmics r equivalent acceptable t the Secretariat; At least 7 years f practical experience gained wrking in the area f public debt Knwledge f debt management cncepts and theries; Gd knwledge f lans and fixed incme instruments and their characteristics; Skills in quantitative debt and prtfli analysis f public debt; Experience in advising cuntries in risk analysis, develping f annual brrwing plan and applicatin f liability management peratins;

7 Knwledge f Hrizn; Gd presentatin skills and experience in delivering face t face training. 3.6 Debt Data Validatin Debt data validatin is prvided ccasinally n a case by case basis t member cuntries using CS-DRMS. The same assistance will be prvided using MERIDIAN nce the system has been rlled ut. Such exercises are undertaken based n specific cuntry requests when data quality ges belw acceptable levels. Data validatin is undertaken within the cuntry fr perids ranging frm tw weeks up t three mnths Terms f reference The cnsultant will be expected t address the fllwing: Assist the debt ffice t cllect, cmpile and validate all data required fr recrding and managing financial instruments; Interpret lan agreements int data entry sheets; Recrd and validate missing financial instruments and related transactins; Recrd missing market data (interest rates, exchange rates, discunt rates) and macrecnmic data; Validate and recncile debt recrds including transactins against surce dcuments and/r external systems t verify the stck psitin f all instruments; Prvide debt data validatin guidelines and dispense training t debt fficers s that they can thereafter undertake debt data validatin n an n-ging basis as part f their wrk; Develp guidelines n prcesses and steps, rles and respnsibilities and authrisatin prcess fr updating and maintaining a debt database; Identify and advise n reprts that can be used by the debt ffice fr debt data validatin Technical Expertise Prspective candidates shuld pssess the fllwing expertise: At least 7 years f practical experience gained wrking in the area f public debt Knwledge f debt management cncepts, theries and internatinal standards fr debt data disseminatin; Up t date infrmatin n the characteristics f lan instruments ffered by multilateral and bilateral creditrs; Gd knwledge f varius types f securities issued by the gvernments fr raising funds; Gd wrking knwledge f all the different mdules f the debt management systems; CS-DRMS r MERIDIAN related cnsultancy with respect t debt data validatin Gd presentatin skills and experience in delivering face t face training; A degree in ecnmics r equivalent acceptable t the Secretariat will be an advantage.

8 3.7 Debt Management Systems IT Training Debt Management Systems IT training is meant fr IT fficers respnsible within debt management ffices t administer the debt database, manage user accunts, perfrm database backup/restre and develp cuntry specific reprts. These training wrkshps are run mstly at reginal and pan-cmmnwealth levels fr duratin f 1 t 2 weeks with the number f participants ranging frm 10 t 20. This training will be available fr bth CS- DRMS and MERIDIAN Terms f reference The training wrkshp cvers the fllwing: Overview f the system s administrative functins; Installatin and maintenance f the debt management system; Database maintenance, upgrade and validatin; User Management; Using CS-DRMS server tls t create, backup and restre debt database; System Security Overview f the database architecture; Develping cuntry specific reprts using the End-User Reprt Writer; The cnsultant will assist in the preparatin f the wrkshp prgramme, prepare PwerPint presentatins and hands-n exercises and facilitate wrkshp sessins Technical Expertise Prspective candidates shuld pssess the fllwing expertise: Knwledge f debt management cncepts; At least 5 years f relevant practical experience supprting the public debt management area; Database management skills; Gd wrking knwledge f CS-DRMS Server tls; Experience in writing reprts using CS-DRMS reprt writer; Gd presentatin skills and experience in delivering face t face training; A degree in Infrmatin Technlgy r equivalent acceptable t the Secretariat will be an advantage. 3.8 Preparatin f Debt Bulletin DMU assists cuntries t develp Annual Public Debt Reprts r Statistical Bulletin using the Secretariat s templates custmised t meet cuntry s requirements Terms f reference The services f the debt expert wuld be hired t facilitate allcated (technical) sessins during training wrkshps n the preparatin f Debt Bulletins. These will include: Statistical methdlgy, standards and definitins as prescribed by the External Debt Statistics Guide and Public Debt Statistics Guide; Debt statistics reprting requirements t internatinal rganizatins;

9 Intrducing participants t gd practices in terms f levels f transparency, availability, timeliness, and cmprehensiveness f debt infrmatin published thrugh debt bulletins; Equip participants with the necessary skill set t cllate, analyse and present statistics n all aspects f public debt; Cnduct training based n the Cmmnwealth Secretariat template fr develping Public Debt Statistics Bulletin Technical Expertise Prspective candidates shuld pssess the fllwing expertise: Knwledge f debt management cncepts, theries and internatinal standards fr debt data disseminatin; Up t date infrmatin n the lan and dmestic debt securities instruments; Expertise t cmpute key risks f public debt (refinancing risk, interest rate risk, exchange rate risk and inflatin risk) and understanding f its implicatins; Skills t carry ut quantitative debt and prtfli analysis f public debt; Experience in preparing Public Debt Statistical Bulletins; Presentatin skill and experience in delivering face t face training. 4. Prcurement Prcess Interested firms r individuals are requested t submit an Expressin f Interest (EOI) alng with: a. The areas f cnsultancy that are being applied fr (7 areas) b. Up-t-date CV(s); c. Evidence f practical experience gained wrking in the area f public debt d. Evidence f experience related t the cnsultancy; e. Cmpany prfile if applicable; f. Cmpleted Cmpany Registratin frm r Persnal Histry frm (as applicable); Cnsultancy cmpanies shuld submit a cmpleted Cnsultancy Cmpany Registratin and Individual applicants shuld submit a cmpleted Persnal Histry Frm (PHF). Bth frms alng with the Skill Cdes Bklet are dwn-ladable frm the Cmmnwealth Secretariat Website. 5.Persnal Histry Frm Skill Cdes Cnsultancy Cmpany Registratin Interested exerts/specialists and cnsultancy cmpanies with expertise in the area f public debt management can submit a duly cmpleted applicatin frm with detailed CV(s)and cvering letter nline. Individuals and firms nt shrtlisted will be ntified after a Specialist Pl evaluatin prcess cnducted by the Cmmnwealth Secretariat has been cncluded.