TERMS OF REFERENCE FEASIBILITY STUDY FOR ENVIRONMENTAL TRUST FUND Type of Position: Local consultant Sustainable finance expert Location: Ulaanbaatar, Mongolia Type of Contract: Individual contract Expected Duration: 4 months Language Required: English and Mongolian Expected start date: 14/08/2017 Application deadline: 01/08/2017 A. Background Mongolian Environmental trust fund (METF) was established the early 1990-ies, with an aim to create a sustainable financing source for the "National Biodiversity Strategic Action Plan, Mongolia". The goal was to establish a capital of 10 million USD in endowment and to fund projects on environmental protection and biodiversity conservation, support the running costs as well as the operation of the fund itself. However, METF was revoked later in 2004 with an asset a little over 2 million USD. The potential reasons for revoking the METF include: (i) during that period there was no proper legal framework for establishing any type of fund; (ii) private sector, in particularly banking system, was poorly developed; (iii) national development strategy and national plans were vague; and (iv) considerable discrepancies between difference government organizations, i.e. the Ministry of Finance and Ministry of Environment. Mongolia witnessed an incremental development changes since then. For instance: (i) following the Sustainable Development Goals or the 2030-Agenda, the Government of Mongolia approved the Sustainable Development Vision-2030; (ii) the GDP per capita was 330 USD in 1997, whereas it is increased to > 4000 USD in 2015; (iii) the legal framework for development planning and relevant sectoral systems is clearly established; (iv) banking and financial organizations in Mongolia is working towards establishing funds to ensure the sustainable environmental financing (i.e. the Green Credit Fund is under development by Mongolian Bankers Association in cooperation with various stakeholders including Ministry of Environment and Tourism, GGGI, UNEP-FI, PAGE and etc). Therefore, UNDP envisages that it is a good timing to explore the opportunities to establish an Environmental Trust Fund (ETF) in Mongolia. The Biodiversity Finance Initiative (BIOFIN) is a global partnership available in 31 countries including Mongolia. BIOFIN is managed by UNDP Country Office (UNDP CO), and funded by the European Commission and the Governments of Flanders, Germany, Norway and Switzerland. UNDP believes a transformation is needed in the way biodiversity finance is planned and managed, unlocking resources to meet the Aichi Targets, defined in the CBD s Strategic Plan 2011-2020. Primary goal of BIOFIN is to build a sound business case for increased investment in the management of ecosystems and biodiversity. Since the commencement of the project in September 2015, the national team in Mongolia obtained the main outcomes under Components 1-3, which include: 1) Biodiversity Policy and Institutional Review; 2) Biodiversity Expenditure Review; 3) Finance needs assistance; and 4) Biodiversity Finance Plan (BFP). The next step of the project is to initiate implementation of the BFP at national (Component 4). One of the financial solutions included in the BFP is the establishment of Environmental Trust Fund (ETF). UNDP CO is seeking a consultant to conduct the feasibility study on establishing ETF in Mongolia.
B. Objectives and scope of work The overall objective of the consultancy is to assist in conducting a feasibility study on the establishment of Environmental Trust Fund (ETF) in Mongolia, and to recommend a follow-up strategy for implementation, including recommendations regarding design options (e.g. entities that could receive proceeds, conservation strategies for programming of fund proceeds, etc.). C. Duties and responsibilities Under the supervision of the expert, the, and the international trust fund specialist, the local consultant will perform the following tasks: 1. Research and review relevant plans, programs, studies and legal documents Review National Biodiversity Programme, BIOFIN s including Policy and institutional Review, Biodiversity Expenditure Review and Finance Needs Assessment; Review of relevant laws and regulations in establishing funds; Assess national conservation funding strategies, sources and needs; Assess potential contributions of the ETF towards achieving the biodiversity goals in existing national plans and programs, and the Sustainable Development Vision-2030 in a greater extend. 2. Assist in conducting baseline assessment: Analyse the lessons learnt from the previous MTEF; Identify criteria for economic, legal, geographic, environmental and social aspects and develop key performance indicators (KPI) to assess the feasibility of ETF; Organize interviews, workshops and group discussions with diverse stakeholder groups in Mongolia to solicit their views on general support for the ETF and specific establishment and design issues; Develop stakeholder mapping for the establishment of ETF; 3. Assist in conducting feasibility study on Establishment of Trust Fund: Assess current and probable levels of commitment by various stakeholders to participate actively and transparently in the ETF development process, including provision of time, expertise, potential projects, etc; Conduct assessment of potential support by both internal and external donors (bilateral, multilateral, private foundations, individuals, etc.), including likelihood of financial contributions to ETF, as well as views on overall ETF purpose and specific design issues. (Research will be conducted through interviews with select donors.) Conduct assessment of potential contribution from private sector, in particularly the banking institutions in Mongolia; Conduct assessment of host government support and political willingness to establish ETF; Illustrate the detailed financial scorecard of ETF with clear definition of beneficiaries, financial issues, internal business process, and potential to grow; 4. Assist in designing ETF Based on the research conducted above, analyse and recommend key design options for a ETF, and recommend specific next steps for a follow-up implementation strategy if an ETF is determined feasible.
If the creation of a ETF seems feasible, prepare detailed Terms of Reference for ETF design and early start-up phases. This should include a description and timetable for activities, performance benchmarks, types and qualifications of specialists needed, required time-frames, and estimated budget. D. Expected output/deliverables Deliverables/Outputs Inception : - List of stakeholders and their roles; - List of consultation meetings and workshops; - Review of relevant plans, programs, studies and legal documents. Progress : - Stakeholder mapping in establishing the ETF; - Financial scorecard of the ETF; - Provide input to the mission and progress s prepared by the international consultant; Report on private sector contribution: - Identification of the potential private sector representatives and their likelihood of financial support; - Preliminary analysis on the total amount potential funds to be raised from private sector; - Possibility to introduce the environmental aspects into the Corporate Social Responsibilities. Final (to be prepared in cooperation with the international consultant): - Detailed Terms of Reference of the ETF in Mongolia; - Design and timeline for establishment and activities of ETF in Mongolia; - Operational modality and types and qualification of specialist needed; - Required time-frames, and estimated budget. E. Duration of work: 4 months F. Institutional arrangement Estimated duration to complete 2 weeks after signing of contract 5 weeks of inception 4 weeks of mission 4 weeks of progress Instalment (%) Target due dates Review and approvals 15% August 25 30% October 13 30% November 15 25% December 15 The consultant will work for a total of 4 months in close collaboration with the PIU, UNDP CO and relevant stakeholders. The consultant should ensure a timely identification of potential risks and signal any delays in deliverables. The contract will be effective immediately upon signature by UNDP.
UNDP CO shall have the following responsibilities: - Provide with relevant documents; - Discuss and agree on the methodologies of the assignment; - Organize the meetings, workshops and etc; - Support for participation and involvement of key stakeholders at the meeting; - Monitor and evaluate the progress of the assignment. The present ToR may be subject to modification, without changing the overall objective and the scope of work, on the basis of mutual consultations. UNDP will hold the copyright of the assignment deliverables. G. Qualifications of the Successful Individual Contractor Education: - Degree in law, economics, finance or a closely related field, or another field combined with relevant work experience, preferably a focus on environment/biodiversity; - Postgraduate degree in relevant field is an asset. Experience: - At least 5 years of experience, preferably in private sector finance, accounting, economics or related field; - Experience in dealing with international and national experts and institutions; - Demonstrated skills in collecting, analysing and processing data; - Experience in private sector financing; - Good understanding of both public and private sector financing in mandatory; - Strong knowledge on development issues, national policies and the SDGs is desirable; - Strong logical sense of political, economic, social and environmental situations in Mongolia is desirable; - Exposure to and/or strong knowledge on environmental conservation and natural resources management is an asset; - Previous experience with design and implementation of various funds is an additional asset. Competencies: - Highly organized person, sets priorities, produces quality outputs, meets deadlines and manages time efficiently; - Able to gather and process data and information; - Excellent interpersonal skills to network with all relevant stakeholders; - Writes clearly professional correspondence adequately; - Shares knowledge and is willing to provide support to others who request advice or help; - Works toward creative solutions by analysing problems carefully and logically; - Maintains professional relationships with supervisors, co-workers and clients; - Sound understanding of key software packages (MS Office); - Strong oral and written English. H. Recommended Presentation of Offer The following documents should be requested: - Letter of Confirmation of Interest to conduct the assignment;
- Personal CV or P11, indicating all experience from similar projects, as well as the contact details (email and telephone number) of the Candidate and at least three (3) professional references; - Brief description of why the individual considers him/herself as the most suitable for the assignment, and a proposed work plan and methodology on how they will approach and complete the assignment. - Financial Proposal that indicates the all-inclusive fixed total contract price, supported by a breakdown of costs in MNT. I. Criteria for Selection of the Best Offer Selection criteria is Combined Scoring method where the qualifications will be weighted a maximum of 70%, and combined with the price offer which will be weighted a max of 30%. ToR is Approved by: Daniela Gasparikova, Deputy Resident Representative, UNDP Mongolia