Duration of Assignment: Approx. 150 working days from January to September 2015

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1 Terms of reference GENERAL INFORMATION Title: Gender Poverty Expert _CPEIR Bangka Belitung (Indonesian National) Project Name : Environment Unit/ Sustainable Development Financing (SDF) SIDA Funding Reports to: UNDP Programme Manager Duty Station: Home based with travel to Bangka Belitung Province, Indonesia Expected Places of Travel (if applicable): basis with travel to Bangka Belitung province and two pilot districts, (Bangka and Bangka Tengah) Indonesia. Duration of Assignment: Approx. 150 working days from January to September 2015 REQUIRED DOCUMENT FROM HIRING UNIT X TERMS OF REFERENCE 5 CONFIRMATION OF CATEGORY OF LOCAL CONSULTANT, please select : (1) Junior Consultant (2) Support Consultant (3) Support Specialist (4) Senior Specialist (5) Expert/ Advisor CATEGORY OF INTERNATIONAL CONSULTANT, please select : (6) Junior Specialist (7) Specialist (8) Senior Specialist X APPROVED e-requisition REQUIRED DOCUMENTATION FROM CONSULTANT X CV X Copy of education certificate X Completed financial proposal X Completed technical proposal Need for presence of IC consultant in office: X partial (meeting/workshop in Jakarta or Bogor for 4 times) intermittent (explain) full time/office based (needs justification from the Requesting Unit) Provision of Support Services: Office space: Yes x No Equipment (laptop etc): Yes x No Secretarial Services Yes x No If yes has been checked, indicate here who will be responsible for providing the support services: <Enter name> Signature of the Budget Owner: Verania Andria

2 I. BACKGROUND Indonesia issued Presidential Regulation No. 61/2011 stipulating the National Action Plan on Greenhouse Gases Emissions Reduction (RAN-GRK) in 2011 which also include the responsibility of sub-national level government to develop Local Action Plan on GHGs Emission Reduction (RAD-GRK). This Regulation elaborates on Indonesia s commitment to make voluntary reduction to its Greenhouse Gases Emissions by 26% against a business-as-usual scenario using domestic resources, and reaching up to 41% with international support by the year The RAN-GRK specifies Indonesia s action plan to mitigate climate change by setting emissions reduction targets per sector to be implemented by 5 priority sectors contributing to Indonesia s emissions. In parallel to the RAN- GRK which states the national mitigation action plan, the Government of Indonesia has recently launched in February 2014 the RAN API which sets out adaptation action plan for the country. As an input to the preparations for the implementation of Regulation on RAN-GRK, a Climate Public Expenditure and Institutional Review (CPEIR) was undertaken by the Fiscal Policy Agency of the Ministry of Finance with support from UNDP. The CPEIR was covering fiscal year of , with a focus on reviewing public expenditures related to climate change in the forestry and energy sectors. The outcome of the CPEIR was the development of Indonesia s Mitigation Fiscal Framework (MFF) which was adopted in The CPEIR study is to be regarded as an input to a longer term policy dialogue and development on climate finance in Indonesia. Since the development of the MFF, the Government of Indonesia (GoI) has been striving to achieve a transition from the current brown economy to green economy development pathways. As a next step from the MFF. The GoI in October 2014 has agreed to implement Sustainable Development Financing (SDF) project supported by UNDP and UNEP. This project aims to strengthen the fiscal frameworks for the implementation of the country s environmental and climate commitments with sustainable financing and in a cost-effective manner. The government implementing partner of SDF project is the Fiscal Policy Agency of the MoF. The overall objective of the project is to strengthen the capacities of the Government of Indonesia to enhance implementation of inclusive environmental activities (climate change mitigation, climate change adaptation and biodiversity). The project will develop fiscal instrument options and mechanisms for strengthening performance-based budgeting. This will be within the framework Indonesia s national climate mitigation plan (RAN-GRK), adaptation plan (RAN-API), and the Indonesia Biodiversity Strategic Action Plan (IBSAP) to support the transition to an inclusive, green economy for sustainable development. The project provides an overarching chapeau to accommodate three separate, yet highly complementary regional/global projects: the Poverty and Environment Initiative (PEI); Biodiversity Finance Initiative (BIOFIN); and Strengthening the Governance of Climate Finance to Benefit the Poor and Vulnerable (Governance for Climate Finance) funded by SIDA. The project builds on the MFF prepared by the Fiscal Policy Agency of the Ministry of Finance. One of the activities recommended by the MFF was to develop a climate budget tagging and scoring system. This recommendation has been responded through a policy study known as Low Emission Budget Tagging and Scoring System (LESS) has been supported by UNEP and PEI and will be further developed and rolled out by the Sustainable Development Financing (SDF) project through national and provincial level pilots. In addition to the mainstreaming climate actions into development planning and budgeting, the Government of Indonesia through Bappenas (National Development Planning Agency) has been capacitating provincial government in pro-poor planning and budgeting. P3BM (Pro-poor planning,

3 budgeting and monitoring) is the tool that is being introduced for this purpose. The P3BM is a set of practical tools and instruments that local government can use to plan and monitor that local budget and plans are pro-poor and sensitive to socio economic inequalities. The tools of P3BM include (i) MDGs scorecard, (ii) Poverty spatial map by using Geographic Information System (GIS), (iii) Descriptive analysis on the quality of RPJMD, Strategic Planning, and Budge Plan (iv) Pivot table analysis to assess quality of development spending at local level. UNDP and Bappenas through PGSP project (Provincial Government Support Project) had introduced P3BM to several provinces including Bangka Belitung province. Having P3BM platform adopted by the provincial government, the CPEIR for climate mitigation and adaptation that will be conducted at the provincial level will seek synergy with the P3BM to strengthen government planning and budgeting of climate actions that benefits the poor in cost-effective manner. In the above contexts, the SDF through the SIDA component is planning to recruit qualified individual consultant to conduct a Climate Public Expenditure and Institutional Review (CPEIR) with a focus on climate mitigation and adaptation expenditure in Bangka Belitung Province and to recommend strategy to synergize CPEIR findings with P3BM platform to ensure a pro-poor climate actions and financing. The national consultant will be part of a technical team in conducting the assignment and will be advised by an International Consultant on the CPEIR approach and reporting. The team will include additional local public finance, climate change and institutional experts. This assignment, overseen by Bappeda and in cooperation with the Fiscal Policy Agency (FPA) of the Ministry of Finance (MoF,) will analyze expenditures and fiscal instruments as well as institutional capacity for planning and budgeting climate actions in the province and in two pilot districts. This assignment is expected to help the provincial and district governments and parliaments to better understand and plan climate finance for mitigation and adaptation actions, make climate investments more apparent and better define roles and responsibilities of relevant institutes with regard to climate finance for pro-poor and gender responsive mitigation and adaptation. In addition, the findings and recommendations from the CPEIR will directly feed into the design of annuall APBD in the subsequent years (2015 onwards). Such activities will include facilitation of cross-sectoral, inter-institutional dialogues at the provincial-level and identification and implementation of priority mitigation and adaptation actions in support of meeting the overall development objectives of the provincial and sectoral development plans. UNDP Indonesia in close collaboration with the Fiscal Policy Agency of the Ministry of Finance will provide guidance to the Consultant as part of the broad consultancy team. The SDF programme team in Bangka Belitung as extended from PGSP project in Bangka Belitung will provide facilitation to the CPEIR consultation team including facilitating consultations with key stakeholders in Bangka Belitung. The consultant to be recruited will report to UNDP Programme manager and to the FPA of the Finance Ministry as per Terms of References. UNDP CO will provide quality assurance over the implementation of the CPEIR, and will support organizing the inception workshop, mid-term workshop and final workshop. UNDP APRC will also provide overall support, quality assurance and guidance to the consultants, ensuring they have access to the latest data, information and experiences on CPEIR methodology development and implementation elsewhere.

4 II. SCOPE OF WORK, RESPONSIBILITIES AND DESCRIPTION OF THE PROPOSED ANALYTICAL WORK This assignment is part of the Sustainable Development Financing (SDF)/SIDA project implemented by the Ministry of Finance with support from UNDP on strengthening governance of climate change finance to benefit the poor and vulnerable groups The gender responsive, poverty sensitive CPEIR for mitigation and adaptation actions in Bangka Belitung will be specific to the province level and is intended to assist the development of a better understanding of: The formulation and coherence of the climate change strategies and policies and whether they address the gender and poverty dimensions of climate change. The roles and mandates of the institutions involved in climate actions, poverty reduction and gender mainstreaming. The processes of resource allocation and effectiveness monitoring for climate, poverty reduction and gender equality, related activities.. The interface between Bangka Belitung local government and various national and international funding sources. The identification of climate change adaptation and mitigation actions including their poverty reduction and gender equality aspects, their allocations, actual expenditures and the sources of these funds The identification of climate actions/expenditures co-benefits in terms of gender equality and poverty reduction. The progression of finance through treasury mechanisms to the delivery of services and actions. The processes of scrutinizing, monitoring and evaluating the effectiveness of all climate expenditures and their co-benefits regardless of their sources. The ongoing process on how to roll out the RAD-GRK and RAN API in an efficient and effective manner for Bangka Belitung. The CPEIR for mitigation and adaptation actions will contribute to the overall development objectives of Bangka Belitung to strategically allocate resources and manage finance in order to achieve its mitigation and adaptation commitments in a manner that is gender responsive and beneficial for the poor and vulnerable. The gender responsive, poverty sensitive CPEIR has the following scope of work: to conduct CPEIR at the provincial level and in 2 selected districts (Bangka and Bangka Tengah) as pilot for analyzing the public financing framework for adaptation actions, poverty reduction and gender equality at the community level. Bangka and Bangka Tengah are recommended as pilot districts because from the P3BM assessment result 2013, the two districts have high number of poor households while MDG score card for Goal 7 on Environment showed relatively good achievement (green score card). This situation indicates ineffective environmental programme to benefit the poor. to provide baseline information and analyses at sub-national level on key climate financing issues with regard to existing policies, institutional arrangement, the planning and budgeting cycle, and non-public sector involvement. To provide baseline information and analysis at sub-national level on the implementation of Performance Based Budgeting. to provide recommendations to ongoing process on how to finance, implement and monitor RAD-GRK and RAN API in an efficient and effective manner for Bangka Belitung. develop recommendations for a climate financing plan to address gender responsive and poverty sensitive climate change mitigation and adaptation priority issues at subnational level. This could be recommendation in the form of budget tagging, application of

5 performance-based budgeting and a climate fiscal framework (required investments, potential sources of finance, fiscal instruments, delivery mechanisms, and accountability framework). Given the newness of methodologies in the area of gender responsive, poverty sensitive CPEIRs and the importance of building national capacities, international experience shows that a combination of international and national expertise is important. An initial inception mission will be used for international expertise to train the national team and to facilitate consultations over priority focus sectors for the duration of the exercise, as well as well as to ensure an appropriate launch of the gender responsive, poverty sensitive CPEIR through the Fiscal Policy Agency, Ministry of Finance in cooperation with the National Development Agency (Bappenas) and the Ministry of Home Affairs. The consultant will also support regional meetings sharing Indonesia s experiences During the process of review, government staff members will be actively involved in the implementation of the gender responsive, poverty sensitive CPEIR and provided with learning sessions on the issues and methods through focus group discussions with the gender responsive, poverty sensitive CPEIR consultancy team. Methodology and Approach The above mentioned objectives will be achieved by using the Climate Public Expenditure and Institutional Review (CPEIR) methodology developed by the UNDP in consultation with the Word Bank, ADB and the OECD. The methodology will be adjusted to the country (in this case sub-national Bangka Belitung) specific focus and needs. It will build on the experiences in Cambodia that have recently updated and refined the CPEIR methodology with support from UNDP. It will also and for the first time, adopt a co-benefits approach by mainstreaming into its analysis the gender and poverty dimensions of the climate change policies, institutions and actions it reviews. The gender responsive, poverty sensitive CPEIR approach includes: I. Policy, institutional and budgetary analysis at national and provincial levels: The CPEIR takes forward several of the issues identified in national climate change strategies and plans and analyses the climate relevant policies, institutions and budgets. The analysis should also adopt a co-benefits approach and analyze how the policies, institutions and budgets are impacting poverty reduction and gender equality. Care should be taken by the CPEIR team in this case to reflect national perspectives in the gap analyses to properly contextualize the sub-national issues. For example, the CPEIR should provide recommendations to the ongoing process on how to finance, implement and monitor RAD- GRK and RAN API in an efficient and effective manner for Bangka Belitung. II. Reviewing the institutional arrangements, accountability and coordination mechanisms for climate change. This will include reviewing some of the provincial policies that directly or indirectly relate to Climate Change, particularly in relation to the RAN GRK, RAD GRK and RAN API. As the CPEIR s focus is one on Adaptation, it should develop recommendations for a climate financing plan to address gender responsive and poverty sensitive climate change adaptation priority issues at subnational level. This could be in the form of a climate fiscal framework (required investments, potential sources of finance, fiscal instruments, delivery mechanisms, and accountability framework). It will also include examining the impact of other legislation that have a direct impact on the delivery of climate change related activities, such as legislation relating to key sectors and policy documents

6 addressing poverty reduction and gender equality such as the National Strategy to Accelerate Gender Mainstreaming through Gender Responsive Planning and Budgeting. While there has been significant progress in establishing the necessary institutional arrangements to deal with climate change, limited coordination has constrained strategic resource allocation and efficient climate finance management. The CPEIR will examine the current institutional arrangements to identify where improvements could be made to ensure the setup of institutional mechanisms that will allow the efficient delivery of gender responsive, poverty sensitive climate adaptation public goods and services. In reviewing the institutional arrangements, the team will also explore underlying political economy issues that impact the status quo as well future scenarios that may emerge post CPEIR. The CPEIR should identify institutional opportunities and bottlenecks at the sub national level: The assessment will then analyze the various institutional and organizational opportunities and bottlenecks that are currently in place that either facilitate the effective delivery of climate change related activities and finance. As part of this, there will be an analysis undertaken to unravel the complex relationship between the central government, sector ministries and the provincial/local government for the delivery of gender responsive, poverty sensitive climate finance. This comparison is necessary to highlight any overlaps in roles and responsibilities, gaps in capacity and responsiveness to community needs. III. Budget allocation and actual expenditure - The gender responsive, poverty sensitive CPEIR will review the public financial management systems for planning, allocating, procuring, spending tracking, gender responsive, poverty sensitive climate related expenditures. It will also review any existing monitoring and evaluating system to measure the effectiveness of climate related expenditures and their co-benefits in terms of poverty reduction and gender equality in Bangka Belitung. This will involve reviewing the integration of climate change, poverty and gender objectives within the resource allocation process including as part of budget planning and implementation. The gender responsive, poverty sensitive CPEIR team will attempt to undertake trend and composition analysis on both budgeted and actual expenditures. In addition to the activities identified above, specific focus will be placed at the provincial level and two district level analysis to examining the following issues: 1) Identifying the sources of funds and treasury / transfer mechanisms from central government to provincial and district level: There is a need to have a clear understanding about the sources of funds, allocation mechanisms and funds transfer mechanisms from the national to the sub national level. The gender responsive, poverty sensitive CPEIR will identify all current modalities such as the general grant via Government Treasury, donor funding to NGOs, and existing national funds available to provincial government (if any). This should consider both allocation mechanisms and transfer of funds. In doing this, the analysis will look at all institutions at the provincial level who are involved in the delivery of climate, poverty and gender related activities, including: line departments, local governments, CSOs, both national and international. 2) Conducting District level case studies: To complement the financial analysis, a case study may be undertaken to provide illustrations of how climate finance is being delivered. The case studies should take into account the poverty and gender dimensions of climate finance. The intention with the case study is to capture the diverse nature of the district

7 levels within the province and the varying levels of capacities of key stakeholders. IV. Classifying climate change expenditures. The absence of a national definition and a consensus internationally, on what constitutes a body of climate, or climate change, expenditure constrains stakeholders in tracking resources allocated for financing climate actions. The gender responsive, poverty sensitive CPEIR will propose an inclusive methodology to define climate change expenditure that is appropriate in the Bangka Belitung context, reflecting both adaptation and mitigation related expenditures. The classification methodology should also allow for the identification of poverty reduction and gender equality co-benefits resulting from these climate expenditures. At the same time, there should also be a space for local institutions and practitioners to influence how central government classifies gender responsive and poverty sensitive climate change and gender responsive and poverty sensitive climate expenditure, based on local experiences as well as international practices. Such a classification may be used to inform future national climate policy and plans, ensuring it is aligned with local planning and budgeting processes. The assignment requires a careful review of planning, budgeting expenditure records and accounts that relate to climate change, poverty reduction and gender equality at local levels and also an assessment of the governance and capacity of institutions in managing gender responsive, poverty sensitive climate finance. The methodological approach requires that the gender responsive, poverty sensitive CPEIR team works inter-actively with the government agencies and other stakeholders to identify the scope of the exercise, priority sectors for in-depth analysis, how to address cross cutting issues such as the poverty reduction and gender equality dimensions of climate finance and a detailed work plan at the inception of the exercise. Expected Outputs: The metioned outputs below will be achieved through joint contribution and in collaboration with: International Public Expenditure Analysis Expert Public Finance System /Planning and Budgeting Expert Governance and Institutional Expert Climate Change Policy/Climate Finance Expert to deliver the following results in English: Inception report outlining full scope of the CPEIR and agreed work plan including schedule for district analysis and draft annotated outline of report on Gender Poverty Component. Draft Gender Responsive, Poverty Sensitive CPEIR report on Gender Poverty Component. Report on assessment result of current practice and policy recommendation on Gender Poverty Component for: o Budget tagging system for tracking climate expenditure that is poverty sensitive and gender responsive. o Application of Performance-based budgeting at provincial level o Fiscal Instruments for provincial level provided to finance climate change, poverty and gender programme (required investments, potential sources of finance, fiscal instruments, delivery mechanisms, and accountability framework) Lesson learning document and dissemination strategies for other Indonesian provinces and for regional south-south exchanges on Gender Poverty Component. Final Gender Responsive, Poverty Sensitive CPEIR Report on Gender Poverty Component that will be conducted at the Bangka Belitung provincial and in 2 districts level as pilot (Bangka and Bangka Tengah);

8 Gender-Poverty Expert In close coordination with other team members (International Public Expenditure Analysis Expert, Public Finance System /Planning and Budgeting Expert, Governance and Institutional Expert, Climate Change Policy/Climate Finance Expert), The Gender Poverty Expert is expected to conduct the following scope of work, but not limited to : 1. Based on the stakeholder consultation, to develop work plan including schedule for district analysis and draft annotated outline of report gender responsive, poverty sensitive CPEIR (Climate Public Expenditure and Institutional Review). 2. To provide analysis illustrating how gender responsive, poverty sensitive climate finance is mainstreamed into the annual budget cycle and medium term fiscal framework. This includes reviewing the annual and medium term planning, budget formulation, budget execution, tracking, monitoring and evaluation phases of the cycle and their responsiveness to gender responsive, poverty sensitive climate finance. Reforms necessary to strengthen the country systems and their ability to attract additional domestic and foreign funding should be highlighted. 3. To review of on and off-budget domestic inter-governmental transfer mechanisms and how they could be strengthened. 4. To provide methodology to define gender responsive, poverty sensitive climate finance. 5. To provide classification and measurement of domestic expenditures according to their climate, gender and poverty relevance based on the definitions developed in the previous step. 6. To review provincial poverty data and provide a comparative analysis of climate related public expenditure and poverty mapping data. 7. To provide assessment result of current practice and policy recommendation on the implementation of Performance Based Budgeting at sub-national level. 8. To review of foreign financed funding mechanisms (on and off budget) to provincial government and NGOs and classification and measurement according to the methodology developed above if possible. 9. To Provide District level case studies analysis on the context of gender-poverty policy and should be included as annexes to the full report III. REQUIREMENTS FOR EXPERIENCE AND QUALIFICATIONS Minimum 8 years for Master degree and 10 years for Bachelor degree of experience in: o Gender and poverty dynamics o Poverty and climate change o Gender and climate change o Climate change policy an advantage o institutional arrangements, accountability and coordination mechanisms for climate change adaptation and mitigation o Voice and accountability of marginalised groups Familiarity with government planning systems and institutional roles; Experience in working with senior government officials; Ability to work as a team with strong communication skills; Ability to work under pressure and time constraint; Excellent written and oral communication skills in English; and Fluency in both English and Bahasa is desirable Academic Qualifications: Bachelor degree or Master s Degree in Economics, Finance, Environment, Social Science or other related field Competencies: Analytical skills, communications abilities, teamwork

9 IV. EXPECTED RESULTS Deliverables/ Outputs Target Due Dates Review and Approvals Required (Indicate designation of person who will review output and confirm acceptance) Inception report outlining full scope of the CPEIR and agreed work plan including schedule for district analysis and draft annotated outline of report Gender Poverty Component. Draft Gender Responsive, Poverty Sensitive CPEIR report on Gender Poverty Component. Lesson learning document and dissemination strategies for other Indonesian provinces and for regional south-south exchanges on Gender Poverty Component. Report on assessment result of current practice and policy recommendation on Gender Poverty Component for: o Budget tagging system for tracking climate expenditure that is poverty sensitive and gender responsive. o Application of Performancebased budgeting at provincial level o Fiscal Instruments for provincial level provided to finance climate change, poverty and gender programme (required investments, potential sources of finance, fiscal instruments, delivery mechanisms, and accountability framework) Final Gender Responsive, Poverty Sensitive CPEIR Report on Gender Poverty Component. 10 working days (6% of total payment) 50 working days (34% of total payment) 20 working days (13% of total payment) 20 working days (13% of total payment) 50 working days (34% of total payment) UNDP Indonesia, UNDP APRC and Fiscal Policy Agency of the Ministry of Finance

10 Scope of Price: The expert will receive a lump sum professional fees including travel cost of the foreseen travel to the expected places (Bangka Belitung) for three times with approx. 3 days/visit/place. On the unforeseen travel, UNDP will also provide lump sum daily allowance according to UN s Harmonized Rate Allowance and airflight fare (most direct route, most economy) in reimbursement basis. The payment will be made to the consultant at each payment schedule, upon technical clearance and approval of the satisfactory submission of results from Programme Manager/ Technical Officer, Environment Unit of UNDP.

Duration of Assignment: Apprx. 150 working days from January to September 2015

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