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Vacancy: International Consultant for Public Debt Management |
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Sunday, 22 April 2007 |
Uitleg fases
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Fase:
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Specific
Procurement
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Processing
Stage:
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Specific
Procurement Notice
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Closing
date:
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30-4-2007
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Notice
number:
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P098426
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Abstract:
A.
BACKGROUND
The
Government of Mongolia has received a grant from the International
Development Association (IDA) under Governance Assistance Project (GAP).
GAP is designed around three main components and a small component on project coordination & management comprising:
(i) Management of Public Finance;
(ii) Fostering Accountability and Monitoring;
(iii) Investment Climate; and
(iv) Project Coordination and Evaluation.
The
objectives of GAP are to improve the efficiency and effectiveness of
key governance processes in public finance management, accountability
and monitoring and investment climate.
For more details on the GAP
Project, please consult the address of the following website:
www.worldbank.org/external/projects and refer to the Project Appraisal
Document Report No.
35212 - MN.
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In the Ministry of Finance
of Mongolia, the Debt Management Division (DMD) of the Treasury
Department is the main responsible entity for public debt management.
The functions of the DMD include:
(i) Domestic debt management (front and back office);
(ii) Implementing foreign loans once ratified (monitoring, compliance and disbursement);
(iii) Back office for foreign loans; and
(iv) Implementing on-lending.
While
a relatively small directorate, the DMD has managed to build
substantial capacity by careful staff recruitment, training, and
planning of rotation of staff.
However, at 8 staffs including the
director, and turnover of experienced-staff since mid-2006, there is a
need for targeted support in key areas.
B.
OBJECTIVES OF THE ASSIGNMENT
A
main objective of the debt management component of the GAP is a
strengthening and clarification of the debt management strategy
development and implementation process.
To support the fulfillment
of this objective, the Ministry wishes to have an experienced
international consultant provide assistance in the following areas:
1.
Legal Framework for Public Debt Management: The existing legal framework for debt management in Mongolia is fragmented.
The main laws that govern public debt management are:
(i) The Foreign Loan and Aid Coordination Law (2003);
(ii) The Consolidated Budget Law (2002); and
(iii) The Public Sector Management and Finance Law (PSMF Law 2002).
In addition, there are a number of procedures and guidelines.
Collectively
these laws are oriented towards the functional aspects of financing the
Government from year-to-year and ensuring that such borrowing is duly
authorized.
In general terms, the laws empower the Minister of Finance to make or approve borrowings upon the approval of the Government.
The
Government approval processes vary; for domestic borrowing an overall
amount is agreed for the year; foreign loans are individually approved
by Cabinet for the Minister of Finance to sign.
There are no objectives stated in laws for managing the public debt.
The
objective of this area is to provide a detailed review of the legal
framework for public debt management, with a focus on strengthening
enforcement and clarifying roles, objectives and process for public
debt management.
The review should also consider how to streamline
and unify existing laws and regulations, as the current framework is
fragmented.
2.
Strategy for Public Debt Management: Debt
management strategy is an outline of the preferred cost/risk trade-off
for the Government, and a plan for how to achieve the targeted debt
composition.
At present there is no legal requirement for a
medium-term debt management strategy taking account of risk, or for
supporting analysis upon which to base borrowing decisions.
A draft
debt management strategy is currently awaiting approval by parliament,
and the approval would constitute an important step forward for public
debt management in Mongolia.
A centerpiece of the draft strategy is limits for total outstanding debt and fiscal policy targets.
While
such limits may be useful in relation to controlling the development of
the debt, they would belong in the Medium Term Fiscal Policy document
rather than in a debt management strategy.
Furthermore, the draft
strategy mentions channeling foreign loans and credits to priority
sectors as and objective for debt management.
While this is clearly
very important, such a prioritization is typically beyond the scope of
sovereign debt management, and should be part of the public investment
program and public expenditure policy.
The draft strategy as it
stands, is not supported by cost/risk analysis, and is expressed as
broad guidelines, rather than specific targets.
The objective of this area is to support the DMD in improving and clarifying the strategy for debt management.
This
includes supporting the establishment of clear procedures for the
development and regular updating of a strategy firmly based on analysis
of cost and risk.
An additional objective the development of tools
to quantify cost and risk, to support the cost/risk trade-off, and
guiding the DMD team in the development of basic risk management tools,
including identifying relevant cost and risk indicators.
Closely related to this, a standardized method to compare total costs under different borrowing alternatives should be provided.
3.
On-Lending
Portfolio: Close to 75 per cent of the Government’s debt is on-lent,
but a substantial share of the on-lending portfolio is non-performing.
A
specific challenge in this area is the fact that a number of the
outstanding on-lent loans are not based on a formal contract, implying
that a clear picture of which non-performing loans can be recovered, is
difficult to provide.
Furthermore, the regulations guiding
on-lending are less than clear, and include potential sanctions against
beneficiaries that are in default.
A team in the DMD is working on clarifying the information on the outstanding portfolio.
The
objective of this area is a substantial strengthening of the processes
and procedures related to on-lending, as well as provision of a firm
basis from which the performance of the on-lending portfolio can be
improved, including estimating a realistic expected recovery rate.
The review should include concrete and detailed recommendations for improved regulations guiding on-lending.
4.
Staff Capacity and Training: Staff in the DMD is organized along product lines, i.e.
in foreign borrowing, domestic borrowing, on-lending, and debt recording.
The DMD consist of 8 staffs, including a director.
Depending on how broadly the functions of DMD are defined, e.g.
the responsibility for debt sustainability analysis, the existing number of staff in the DMD may be in the low side.
While salaries are relatively low, management has so far been successful in to attracting and retaining qualified staff.
The
instruments used have been a combination of carefully planned overseas
studies, with an explicit agreement with staff to return to the
ministry for a minimum period of time, availability of training
provided by international institutions, and by creating a dynamic and
challenging working environment in the directorate.
The
objective of this area is to provide a detailed review of the required
number of staff of the DMD, based on the functions that are the
responsibility of the DMD, including detailed outline of the capacity
needed for the specific functions.
Furthermore, detailed training
plans for individual staff in the DMD should be developed, again, with
a strong focus on functions.
C.
SCOPE OF WORK
The specific duties of the consultant will include but not limited to the following:
1.
Legal Framework for Public Debt Management:
Review
the existing legal framework for public debt management, and, with the
DMD, prepare a detailed proposal for reform, including a timeline for
interventions.
(End June, 2007)
Support the DMD team in drafting legislation and regulation as needed.
(End September, 2007)
2.
Strategy for Public Debt Management:
Review and update existing procedures for the preparation and updates of the debt management strategy.
(End May, 2007)
Define
and provide support to the DMD for developing a standardized method of
comparing all-in cost of various borrowing alternatives.
(End June, 2007)
Work with the DMD team to further develop the debt management strategy that is currently with the Parliament.
An important part of this exercise is narrowing the scope of the strategy.
(End August, 2007)
Define and provide support to the DMD for identifying and calculating basic cost and risk indicators.
(End October, 2007)
Define and provide support to the DMD for developing basic risk management tools.
This should include a basic deterministic scenario analysis model.
(End March, 2008)
3.
On-Lending Portfolio:
Review existing processes and procedures related to on-lending.
Support the DMD in revising these as needed, including establishing standardized terms for on-lending.
(End June, 2007)
Provide
guidance and support to the DMD-team responsible for reviewing and
updating the existing database for on-lent government loans, including
advice on dealing with non-performing loans, estimating potential
recovery rates, and on-lent loans that are not based on a formal
contract.
(End March, 2008)
4.
Staff Capacity and Training:
Prepare
a detailed report on staff capacity and training, with a special focus
on ensuring that the functions that are the responsibility of the DMD
can be met timely and with a high quality.
The report will focus on the functions of the DMD are responsible for.
(End May, 2007)
Based on the responsibilities of the DMD, prepare a detailed paper outlining the staffing requirements of the division.
(End September, 2007)
The
Consultant will provide basic training through in-house workshops on
specific issues, and produce the further training plan for the DMD as
agreed with the Director of the DMD.
Undertake such other tasks
as may be requested and/or assigned by the Director of the DMD in
conjunction with the objective of the assignment.
D.
DELIVERABLES
In
connection with the above mentioned work, the deliverables for the
consultant will include, but not limited to the following:
An
evaluation report on legal environment and workplan to draft modified
legal documents in accordance with international accepted standard
Comment on a debt management strategy and on the further narrowing the scope of the strategy
Guideline on collecting, recording and reporting government on-lending loans
Medium term training plan for the DMD
E.
SUPERVISION AND REPORTING
The
consultant will work closely with the DMD-team, and will report
directly to the Head of the Debt Management Division of the Treasury
Department, MoF.
Contract administration will be handled by the Project Coordinating Unit at the Ministry of Finance.
The
report will summarize the initial findings and present any proposed
modifications to the legal documents, including the staffing plan and
schedule.
All reports are to be:
Prepared in English and Mongolian
Submitted in hard copy as well as soft format
Five copies of each report will be submitted.
All data collected during the study will be documented, collated, and presented as annexes
A
draft documents (draft evaluation report, manual, guideline and
training plan) will be delivered in advance to the Client for its
review, and comments should be incorporated
Within two weeks of
receiving Client’s comments, the Consultant will produce a final
version of documents, including an abstract/executive summary
Head
of the DMD will appoint members of his staff as main responsible for
each of the four areas mentioned above, and the consultant will work
directly with these staff members.
CONSULTANT’S QUALIFICATIONS / SELECTION CRITERIA
At least 10 years experience of working with public debt management, including extensive managerial experience
Capacity to provide training as well as technical input to the Mongolia debt management team
Extensive experience in implementation of similar projects in other countries with market and transition economies
F.
CONTRACT DURATION
The assignment is expected to commence by mid of May 2007.
Total level of effort would be 4 man-months over an elapsed time of 12 months.
The 4 man-month would be divided into
(i) a 2 man-months field assignment with 4 missions, each mission with duration of two weeks, in Mongolia and
(ii)
services of 2 man-months to be developed in the consultant’s office
between missions and the consultant should be available through
telephone and/or e-mail to provide input as needed, and follow-up on
activities.
G.
DEADLINE FOR SUBMISSION OF EXPRESSIONS OF INTEREST AND CONTACT INFORMATION
The
GAP Project Coordinating Unit now invites eligible individual
consultants to express their interest in providing these services.
Interested
consultants must provide information indicating that they are qualified
to perform the services (CVs, description of similar assignments, and
experience in similar conditions).
Consultant
(individual
consultant) will be selected in accordance with the World Bank’s
Guidelines: Selection and Employment of Consultants by World Bank
Borrowers, May 2004.
Deadline for submission of expressions of interest is 30 April 2007 at 2330 hours, Ulaanbaatar time.
Expressions of interest must be delivered to the address below.
Submissions can be sent via certified mail, via fax or by email.
Those who choose delivery by email should ensure that a confirmed delivery receipt of their mail is received.
The PCU bears no responsibility in non delivery submissions due to internet network problems or glitches
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Financing
Institution:
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World Bank
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Program:
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GAP/C/A1 –
002
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Agency:
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GAP.
Governance Assistance Project. Attn: Mrs. G. Oyungerel – GAP Project Manager.
Negdsen Undestnii St. 5/1, Government Building 2, Room 411. Ulaanbaatar -
210646, Mongolia. Tel/Fax: (976-11) 265-782. E-mail:
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More
information:
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Click here for additional information
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Zie ook:
Mongolië: Governance Assistance Project
Wereldbank Groep
Bron: World Bank
Nummer: 184125
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