75 working days spread over 4 months with possibility of extension 1. BACKGROUND

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1 TERMS OF REFERENCE 1. Environmental Finance Expert Contracting Agency: Coordinating Agency: Place: Expected duration: United Nations Development Programme (UNDP) Bhutan UNDP Country Office Thimphu, Bhutan. 75 working days spread over 4 months with possibility of extension 1. BACKGROUND The global Biodiversity Finance Initiative (BIOFIN) is managed by UNDP s Ecosystems and Biodiversity Programme, in partnership with the European Commission and the Governments of Germany, Switzerland, Norway and Flanders. Guided by a global steering committee representing its partners, BIOFIN aims to develop a methodology to quantify the biodiversity finance gap at the national level, to improve cost-effectiveness through mainstreaming biodiversity into national development and sectoral planning, and to develop comprehensive national finance plans. At its base, BIOFIN thus provides a framework through which to support partner countries in developing and implementing their National Biodiversity Strategy Action Plans (NBSAPs), and achieving national biodiversity targets. Thirty countries including Bhutan are currently working as part of this global project, advancing this methodology, which will be continually refined and shared through regional and global learning platforms. Climate Public Expenditure and Institutional Reviews (CPEIRs) have been used in over twenty countries now to review policies, institutions and expenditures on climate change as means to establishing both a baseline of the current climate change response, as well as recommendations for how that response may be strengthened and climate related investment better managed. The reviews look to see how climate change policy is formulated and integrated within national, sub-national and sector policy and planning instruments. As well how a range of government institutions are translating this policy into their budgets. Finally, the review maps out the full range of public expenditures that relate to climate change and provides the government with an overview of how policy is being translated into expenditures. Climate change related expenditures are often hidden within other investments (such as those in agriculture, infrastructure, irrigation etc.) as such the CPEIR weights investments according to their climate change relevance. The focus of a CPEIR is on identifying ways in which climate change can be integrated into existing budgeting processes and public financial management at national and local levels. The CPEIR also established recommendations for how systems can be strengthened to facilitate additional international climate finance to align with domestic resources. This is done with a view to understanding the impact that climate change has on men, women, the poor and other social groups, thus allowing relevant policies to be informed from this perspective. In Bhutan during the 9 th and 10 th Five-Year Plans, three Public Environment Expenditure Reviews were assessed under the UNDP-UNEP Poverty Environment Initiative. The PEER adopted the methodology 1

2 based on an environmental classification with nine environmental clusters and 38 subclusters. However, the studies lacked in-depth analysis of efficiency and effectiveness of expenditures and also lacked assessment of resource gaps and potential sources of revenue for sustaining environmental service deliveries. The study also did not focus on expenditure review of private and corporate sector. Through this Expenditure Review, these gaps and limitations during the previous PEERs will be addressed by including private sectors, CSOs and corporate sector. While not within the scope of this exercise, assessing the effectiveness and efficiencies, and identifying resource gaps and revenue streams will follow in the next subsequent steps. The Royal Government of Bhutan (RGoB) expressed its interest to join the BIOFIN project in June 2015, with an agreement signed with UNDP in July At the same time, RGoB has expressed interests to implement the Agenda 2030 and the 17 Sustainable Development Goals (SDGs) therein, prioritizing three SDGs in the first instance: SDG 1 on No Poverty, SDG 13 on Climate Action, and SDG 15 on Life on Land. The environment is conducive to innovate with the BIOFIN methodology in Bhutan, such that it delivers results not only related to biodiversity but also to tackling climate change and eradicating poverty. It will do so by assessing and integrating the methodologies of the Climate Public Expenditure and Institutional Review (CPEIR) as well as the Poverty Environment Initiative (PEI) and identified poverty initiatives with the BIOFIN methodology. The final product will be an integrated financing strategy for prop-poor environment, climate change and biodiversity related goals of Bhutan s 12 th Five Year Plan and beyond, advancing a new approach towards sustainable financing for development. The Environmental Expenditure Review is the second step of the integrated approach following Biodiversity/Climate Change Policy and Institutional Review and inform the third subsequent step of Finance Needs Assessment. 2. OBJECTIVES The goal and objectives of the assignment are: Overall Goal: The overall goal is to analyse data on data on public (and private) budgets and expenditures to inform and promote improved biodiversity and climate policies, financing, and poverty reduction results. Specific objectives: i. Review and build on history of Public Expenditure Reviews carried out in the country. ii. Establish a business as usual situation for biodiversity and climate finance upon which to evaluate finance needs, estimate a finance gap and build a sound investment and finance plan iii. Reflect the multi-dimensionality of environmental issues around biodiversity, climate and poverty dimensions. iv. Ensure contribution towards an integrated national approach to BIOFIN implementation in Bhutan including combining existing approaches and methods offered by the Climate Public Expenditure Review, and Poverty-Environment Initiative to arrive at a financing for development framework as inputs to the implementation of the SDG and medium term plans; 2

3 3. SCOPE OF WORK The Environment Finance Expert will be responsible to complete the Environmental Expenditure Review (BER) and inform the next step of Finance Needs Assessment (FNA) following the guidance provided by the current version of the BIOFIN Workbook and CPEIR Methodological Workshop in close collaboration with the Lead Finance Expert and with detailed data and analytical support provided by the Finance/Budget Specialist. The Environmental Finance Expert will also provide input to all other national BIOFIN outputs, including the Policy and Institutional Review, Finance Needs Assessment and to recommend further feasibility studies for priority finance mechanisms in the Finance Plan. The consultant will also contribute to the Summary for Policy Makers and provide input to the feedback on the BIOFIN methodological framework. The Environment Expenditure Review explores national and subnational level budgeting and biodiversity and climate change expenditures (including linkages to poverty) of different organizations, agencies, ministries, NGOs and private sector actors. The Environmental Finance Expert will produce drafts and analyses that will be reviewed and ultimately validated by the Lead Expert, the National and Global BIOFIN Team, regional Climate Change team, and the UNDP-UNEP regional PEI team. Key duties and responsibilities will include: Environmental Expenditure Review Carry out a desk review to map existing studies/information/databases on biodiversity and climate expenditures with their linkages to poverty, including an overview of earlier environmental expenditure reviews. Develop a proposed national definition for biodiversity expenditures and climate expenditures, based on the BIOFIN and CPEIR methodology, including their linkages to poverty dimensions. Review linkages of biodiversity and climate change expenditure to changes in environmental asset condition and extend and the distribution of benefits to people. Develop a workplan for the Environmental Expenditure Review for discussion with the national BIOFIN team. Determine a target list of organizations to include in the analysis based on the PIR work and the availability of expenditure data. Establish a classification system to tag biodiversity and climate expenses into categories (Aichi, BIOFIN, INDC, NBSAP themes, etc.) and a weighting system of coefficients / attribution to estimate contribution of mixed actions towards biodiversity, climate change and linkages with poverty. Conduct the expenditure review on budgets and expenditures dating back to 2006 (if possible) to the most recent complete year. Follow BIOFIN Workbook for guidance (includes sources of funding, subsidies, and biodiversity based revenues) and CPEIR guidance. Analyse the total biodiversity-related and climate-related expenditures filtered by major strategy groups using BIOFIN taxonomy (or national categories such as NBSAP) and equivalent climate change taxonomy based on INDC or climate change strategies. Create stronger links between the System of Environmental Economic Accounting, Green Economy Indicators, national accounting and the performance-based budget allocation process, where appropriate. 3

4 Coordinate the compilation of relevant data and liaise with relevant Ministries and partners as required and complete all data entry sheets for the Expenditure Reviews as well as explore means to integrate climate change and poverty dimensions into BIOFIN or existing data platforms. Organise bilateral consultation meetings/interviews/discussions with national level stakeholders to define then validate the attribution of biodiversity and climate significance in all relevant expenditures. Applying budget projections and other assumptions, estimate future funding baseline under a Business- As-Usual Scenario : an analysis of projected estimated funding in the future. Based on international best practises and the BIOFIN/LECB Workbook, develop and implement a specific strategy for data collection for private sector expenditure and organise dedicated consultation meetings with private sector stakeholders (e.g. chamber of commerce, multinationals) on tracking biodiversity and climate expenditures. Based on results from the national consultation workshop, develop the draft Environmental Expenditure Review for review by the national BIOFIN team and Global BIOFIN Team, UNDP-UNEP PEI regional team, and relevant climate change partner institutions. Based on the review, develop the final Environmental Expenditure Review for and present at the validation workshop. Finance Needs Assessment (FNA) Review the BIOFIN Workbook methodology, examples from other BIOFIN & CPEIR countries, the latest NBSAP and the 5 th National Biodiversity Report, IDC and UNFCC National Communication reports and other poverty related documents to develop an initial work plan and outline for the FNA. Consult with the NBSAP team, Climate Change team, and government entities responsible for NBSAP and INDC implementation to obtain background information about NBSAP and climate activities and government budgeting processes. Carry out initial review of the activities listed in the NBSAP and INDC and other key strategic documents to assess if they are detailed and quantified enough for their budgets to be estimated in detail. Also, see if these documents clearly link to addressing poverty dimensions. If not, provide recommendations to define clearly the NBSAP and INDC actions so that they can be budgeted. Finance Plan Support the Lead Expert in the conception and preparation of the Finance Plan. Provide recommendations for feasibility analyses on some priority financing mechanisms depending on knowledge and experience. Project Outreach and Communication Preparation of workshops, meetings, networking and presentations as required, to complete the Environmental Expenditure Review and engage stakeholders. Facilitate training and capacity building of national level stakeholders on the basics concepts of expenditure reviews and work to develop the capacity of direct government counterparts. Provide substantive comments and feedback on how to improve the integrated methodology. 4

5 Knowledge Management and Reporting Document decisions and assumptions made while completing the Expenditure Review and the Finance Needs Assessment. Document lessons learned from conducting the BIOFIN project ranging from institutional considerations to technical issues. Prepare reports and case studies, as required, for submission to global meetings. 4. DURATION OF ASSIGNMENT, DUTY STATION AND EXPECTED PLACES OF TRAVEL The consultant will be hired for 75 working days spread over four months with possibility of extension to complete certain elements of Finance Needs Assessment and Finance Plan. The Environmental Finance Expert will report to the National Project Coordinator, and the Portfolio Manager, Economic Integration and Innovation, UNDP. While the consultant will not be required to travel to the field for data collection, s/he may be required to participate in workshops or meetings outside Thimphu. 5. PROVISION OF MONITORING AND PROGRESS CONTROLS The consultant will work under close guidance of the BIOFIN Lead Consultant and receive technical guidance and support from UNDP Bhutan, BIOFIN Global team, BIOFIN Steering Committee and Technical Working Group. UNDP Bhutan and the Global team as well as the UNDP-UNEP PEI regional team and relevant climate change partner institutions will ensure that the methodology of the assignment is aligned with the intended objective of the assignment, and monitor quality of final products. The consultant shall submit work outputs to UNDP Bhutan based on timelines stipulated in the work plan. 6. DEGREE OF EXPERTISE AND QUALIFICATIONS Education: Advanced Degree (Masters or higher) in finance, economics, business management or a closely related field, or equivalent relevant work experience, preferably with an environment / biodiversity focus. Competencies: Strong analytical, writing and communication skills. Ability to prepare clear publications, reports and presentations. Ability to work with a multidisciplinary and multicultural team. Strong motivation and ability to work and deliver under short deadlines. Focuses on impact and result for the client and responds positively to critical feedback. Able to work independently with little or no supervision. Familiarity with government strongly desired. Experience: 5

6 At least 5 years of experience, preferably in environmental finance, accounting, economics, management or related field. Experience in collaborating with international and national experts and institutions. Exposure to environmental issues or biodiversity desirable. Sound understanding of key software packages (MS Office) Previous experience with expenditure reviews would be an asset. 7. RECOMMENDED PRESENTATION OF OFFER The consultant should submit the following documents: a) Duly accomplished Letter of Confirmation of Interest and Availability; b) Personal CV or P11, indicating all past experience from similar projects, as well as the contact details ( and telephone number) of the Candidate and at least three (3) professional references; c) Brief description of why the individual considers him/herself as the most suitable for the assignment; and d) A methodology on how they will approach and complete the assignment. Appraisal and feedback from past clients/organizations on related assignments, where relevant 8. CRITERIA FOR THE SELECTION OF BEST OFFER The following criteria shall serve as a basis for evaluating the offers: Combined Scoring method where the qualifications and methodology will be weighted a maximum of 70%, and combined with the price offer which will be weighted a max of 30%. Criteria Weight Max. Point A. Technical Academic Background 2. Core Competencies and Motivation 3. Relevant experiences as per the requirement 4. Adequacy of the proposed methodology and work plan in response to the Terms of Reference Sub-total A. Technical 70 B. Financial Sub-Total B. Financial 30 6

7 Criteria Weight Max. Point Total (A+B) PAYMENT TERMS The selected consultant will be paid upon certification from Portfolio Manager, E2I in the following manner: Expected Deliverables Payment in percentage Expected deadline Submission and acceptance of the inception note with draft work plan to complete the assignment 10% 25 Nov 2016 Results of initial desk study and including definitions, biodiversityclimate-poverty interface, list of institutions and acceptance of detailed workplan for Environmental Expenditure Review 20% 10 Dec 2016 Submission of draft results of expenditure reviews and data entry sheets 30% 25 January 2017 Submission of draft report including projections, and 20% 01 March 2017 Submission and acceptance of the Final Environmental Expenditure Review 20% 15 March 2017 The currency of payment is in Bhutanese Ngultrum. 10. FINANCIAL PPRPOSAL The proponent is required to indicate fee structure in Lump-sum by providing breakdown into travel, per diem and professional fee for anticipated number of working days. The proposal should be submitted in electronic format by Tuesday 15 th November, 2016 to and 7

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