SPECIFIC TERMS OF REFERENCE

Support to Further Economic Reforms III in Turkmenistan – Annual Action Programme 2011 for Turkmenistan

FWC BENEFICIARIES 2009 – LOT 11: Macro economy, Statistics, Public finance management

EuropeAid/127054/C/SER/multi

 

  1. 1. BACKGROUND

Assignment:

The subject of this ToR is to provide expert assistance to the Commission in its preparation of the project “Support to Further Economic Reforms III in Turkmenistan”.

The projects will be funded by the DCI instrument under the Action Programme 2011 for Turkmenistan.  The project Identification Fiche has been developed by EC services based in Brussels. Consultations were held with the prospective project partners, key stakeholders and relevant target groups.  The Identification Fiche need to be assessed and Action Fiche and Terms of Reference need to be finalised by an expert through field mission(s) in the beneficiary country and in close cooperation with the EC Task Manager.  The expected result is to have in place the projects’ documents required by EC based on the expert’s own assessment in the field and negotiated and agreed by all relevant project stakeholders.

Summary description of the DCI project to be prepared:

Objectives:

The project will develop a process aiming at achieving in the long term the following overall objective: To support the Turkmen authorities and in particular the Ministry of finance in the achievement of the National Sector objectives with regard to Public Finance Management Reform through strategic and institutional support.

 

Specific objective: To further support the gradual reform process in PFM engaged in Phase I and Phase II by facilitating the transition to a system of norms and practices of an internationally acceptable standards and introducing of an over-arching government-wide PFM Strategy.

Component 1Further development and implementation of the Public Finance Management Reform

This component is based on the principle that the PRM reform cycle is seen as a set of inter-related sub-systems which will be further initiated and implemented to build institutional capacity and strengthen the country PFM systems durably.

 

The specific results of this component are:

 

  1. A macroeconomic research framework and results oriented multi-annual budgeting (ROB) are adopted and utilised at central and local level. Enhanced medium-term financial planning capacity of the Ministry of Finance based on economic modelling, performance information and accountability.
  2. National accounting standards are adopted and applied in line with best international practice, i.e., the International Financial Reporting Standards (IFRS) and the International Public Sector Accounting Standards (IPSAS), for reporting and preparing financial information.
  3. The Government Finance Management Information System (GFMIS) is fully operational and Information & Technology (ICT) solutions are adopted in Ministries. The efficiency, reliability, and timeliness of government financial planning and transactions are improved to international standards through use of electronic financial management systems.
  4. Government finances are protected through the use of risk management and internal audit techniques. Established internal audit structures and capacities for sound financial management and control. This includes gap analysis of the public internal financial control in the Line Ministries, creation and enforcement of internal audit positions. It will improve the effectiveness of risk management and control of expenditure.
  5. Developed Capital Investment Planning (CIP) methodology and improved capacity of the MOF for efficient budgeting, prioritization, and implementation of capital expenditures. It incorporates preparing regulatory and legal framework and budget documentation defining capital investment projects, and formulating investment/acquisition plans.

The establishment of a modern treasury, which is an essential tool for consolidating and managing governments’ cash resources, goes through various reform phases, including the reinforcement of the existing organisational structure of the MoF and improvement of the existing treasury functions. The possibility to include a treasury system reform as separate component in this project should be discussed with the project partner during the formulation phase.

The newly-formed Stabilisation fund will lead to more transparent utilisation of natural resource revenues and the allocation of proceeds. The project could support the setting up of the governing principles and rules for the institutional functioning and management of the Stabilisation fund, as well as, the establishment of the legal basis. The option to include this activity in the project should also be discussed during the formulation phase.

 

Component 2 – Further support to the establishment of a training system for continuous improvement of the quality of public services

The specific results of this component are:

  1. Training Needs Assessment is conducted in Ministries to be more extensively involved in PFM reform, including the fields of: Accounting, Audit, Budget, Finance, Internal Audit, IT (ICT, GFMIS), Leadership, Management, Planning (Monitoring & Evaluation), Procurement, and Professional Development.
  2. Change management and capacity building programmes at central and local level are delivered for all financial management staff of MOF and identified line Ministries. The developed training activities, programmes and tools are structured to respond to the integration and upgrading of the specific skills with regards to the implementation of the PFM reform process outputs.

 

Main activities will include (further analysis is required):

Component 1:

1.1. Results Oriented Budgets (ROB) are adopted and utilized:

  1. Assist in designing Ministry organizational program structure;
  2. Define the use of projects and activities in the Ministries (central to fund accounting and allocation of resources);
  3. Develop a transition plan to assist Ministries in transitioning from line-items to ROB management types: Personnel, Services, Goods, Equipment and Capital;
  4. Assist Ministries in defining their program missions;
  5. Develop performance indicators for all Ministry programs;
  6. Develop a performance monitoring and reporting system;
  7. Conduct performance audits of programs;
  8. Develop and implement a program budget training plan;

1.2. Macroeconomic research is adopted which is capable of providing medium-term financial planning.

  1. Macroeconomic models adopted by the MOF;
  2. Personnel at the MOF trained in macroeconomic data collection;
  3. Training in medium-term forecasting for the development of ROBs designed and conducted in the Ministries.

2.1. Public sector accounting standards are utilized in Ministries.

  1. Training in public sector accounting standards designed and conducted.
  2. Assist in developing and training in practical accounting activities such as: maintaining ledgers, journals, cashbooks, preparation of financial statements, establishment of registries to control appropriations (allocations and obligations), and fund accounting.
  3. Develop National Financial Reporting Standards
  4. Training of specialists and training in national financial reporting standards designed and conducted.

3.1. GFMIS is fully operational for rollout.

  1. Assist the MOF in evaluation, selection and procurement of GFMIS software and hardware.
  2. Provide technical advice and guidance to the GFMIS implementation team in system integration and implementation.
  3. Assist the GFMIS implementation team in development of detailed operating manuals, procedures and instructions.
  4. Carry out change management and end user training.
  5. Assist the MOF in system testing and user acceptance testing.
  6. Implement pilot sites, monitor and evaluate.
  7. Design rollout and initiate implementation.

3.2. Information and communication technology (ICT) solutions are adopted in Ministries.

  1. ICT departments established/upgraded.
  2. Computer literacy and training provided (spreadsheet, word processing, database management, communications, and research tools) training provided.
  3. Wider usages of ICT assessed (automated property and supply management).
  4. Improve internet presence.
  5. Assessment and preparation for electronic-governance.

4.1. Internal audit departments are established and enhanced in each Pilot.

  1. Internal auditor positions are established.
  2. Key points of measurement, assessment, and potential risk areas identified.
  3. Internal audit plans established.
  4. Templates for internal audit reports developed, internal audit manual prepared.
  5. Develop and implement training plan for internal auditors.

5.1. Developed Capital Investment Planning (CIP) methodology and improved capacity of the MOF for efficient budgeting, prioritization, and implementation of capital expenditures

1 .     Assist the MOF in preparing the budget documentation defining the capital investment projects.

2.      Prepare procedure for sectoral expertise of investment proposals.

3.      Develop methods and guidelines for financial feasibility study of investment projects through state share in authorized capital of legal entities.

4.      Training of specialists.

Component 2:

6.1. Change management and capacity building programs are delivered for all financial management staff in Ministries.

 

  1. A Training Needs Assessment is conducted in Ministries in public financial management, including the fields of: Accounting, Audit, Budget, Finance, Internal Audit, IT (ICT, GFMIS), Leadership, Management, Planning (Monitoring & Evaluation), Procurement, and Professional Development.

2.      Training plan is developed and training undertaken. (with the goal of 100 hours of training per PFM individual).

3.      Establish government to government exchange programs in public financial management.

4.      Assist in professional association development in financial management.

 

  1. 2. DESCRIPTION OF THE ASSIGNMENT
  • Ø Global objective

To facilitate a project formulation process based on the Logical Framework Approach (LFA).

 

  • Ø Specific objective(s)

To ensure a qualitative draft formulation of the above-mentioned project to be funded by the Commission (in the overall estimated amount of €4 millions) under the AP2011 for Turkmenistan.

  • Ø Deliverables

In particular, the Contractor shall provide the following deliverables under the supervision and guidance of the EC Task Manager or his/her superior:

–                      Project Action Fiche:  i.e. revision of the current Identification Fiche through field mission to Turkmenistan to carry out a process dealing with problem analysis, stakeholder analysis, objectives analysis and selection of a preferred implementation strategy. Expected results: by the end of May 2011, to have in place a draft Project Action Fiche + Logframe + Estimated Budget in the template required by EC and agreed with all relevant project stakeholders.

–                      Terms of reference (ToR):  In addition to the Projects Action Fiche, the experts will prepare the draft ToR, in close cooperation with the Task Manager and main stakeholders involved. This work will be carried out in parallel with the preparation of the Project Fiche and then as separate mission(s) once the Project Action Fiche has been finalised and approved.

–                      Additional technical and policy inputs or background information in the given area will be provided by the expert on a case to case basis upon request of the Commission.

  • Ø Requested services

In order to carry out all requested assignments, it is foreseen that the framework contractor, will indicatively undertake 3 missions to Brussels and 3 field missions to Turkmenistan.

Since the missions might include travel to destinations far away from the capital, Ashgabat (Turkmenistan), a budget should be foreseen for car-hire and/or local flights up to a maximum amount of 2.000 Euro in total subject to approval of the EC task manager.

Each individual assignment will be carried out under the instructions of the EC Task Manager or his superior – normally in the following chronology:

–                      Briefing meeting (indicatively 1 day) in Brussels between the expert and the EuropeAid Task Manager, as well as the line DGs where relevant. The aim of the meeting is to exchange relevant information and discuss the planning for the execution of the assignment.

–                      Review all relevant documentation which will be provided by the EC Task Manager and/or the beneficiary national authority;

–                      Field mission to Turkmenistan to formulate and discuss the details of the project with the beneficiary authorities (each mission shall be approved by the EuropeAid Project Manager prior to its start). Indicatively the duration of each field mission to Turkmenistan should not exceed 10 working days.

–                      Liaison, as required, with the various parties involved, in particular counterparts, European Commission, international organisations and /or other donors.

–                      Drafting of the output documents of individual assignment (Mission Reports, Action Fiche, ToR, other);

–                      Finalise the output documents of individual assignment in agreement with EC.

  • Ø Required outputs

On demand of the EuropeAid Project Manager the Framework contractor will carry out the following kind of assignments:

–           Project Action Fiche;

–           Terms of reference;

–           Technical inputs on TA/Cooperation matters;

–           Qualified information on country sector development.

Expert’s assessment should be based on the following criteria:

–                      The institutional set-up of the project responsibility and coordination between Turkmen partners to ensure consistency and flexible implementation;

–           Options to be proposed for the best implementation measures and for the optimal programme structure including a presentation of the implementation phase by Project Partner and by Component;

–           Sustainability aspects concerning how the government will co-finance and sustain the projects after its end.  The issue of co-financing from Turkmen side on joint-implementation basis is of key relevance.

–           Synergies and complementarities with other Donor and /or Government initiatives.

 

  1. 3. EXPERTISE REQUIRED
  • Ø Number of requested experts per category and number of man-days per category
  1. One Senior Expert for 50 man-days;
  • Profile per expert

Expert must have a strong experience in formulation, preparation of Terms of Reference, including PCM methodology and knowledge of EC procedures, high quality reporting skills and proofreading in English.

Qualifications and skills

–                      Post graduate degree (preferably Ph.D or Master) in Accounting, Economics, Financial Management or equivalent by experience;

–                      Minimum of ten years experience in the field of Public Finance Management, Budget Reform, Policy and strategy development, Capacity building and Training. At least five years of this experience with NIS countries;

–                      Fluency in English. Knowledge of Russian would be an asset;

–                      Strong negotiation/facilitation and communication skills;

General professional experience

–                      Experience in Public Finance Management projects, overall State Budget Reform;

–                      Minimum of 10 years experience in the management/identification/formulation of Public Finance-related projects in third countries, with particular reference to economic reform processes, preferably in Central Asia or Eastern European countries.

Specific professional experience

–                      Proven experience in working with EU financed technical assistance projects in the area Public Finance/Economic Reform.

  1. 4. LOCATION AND DURATION
  • Ø Starting period

Indicatively the contract’s starting date will be 2nd May 2011.

  • Ø Foreseen finishing period or duration

The assignment duration is 12 months.

  • Ø Planning including the period for notification for placement of the staff as per art 16.4 a)

The estimated use of days according to the below-mentioned planning is:

–                     Briefings in Brussels: maximum 6 days

–                     Field missions in Turkmenistan: maximum 24 days

–                     Desk work at home: 20 days.

 

Indicative planning table Dates/deadlines Days
Tasks to be performed Estimated Estimated
Briefing of the expert(s) in Brussels May 2
Deskwork by expert(s) in preparation of first mission May 5
First Expert mission in Turkmenistan: Action Fiches May 10
Projects Action Fiches finalised by expert(s) End of May 5
First expert debriefing in Brussels – Mission Results and presentation of Draft Action Fiches Beginning of June 2
Second Expert mission in Turkmenistan: TORs first drafts September 7
1st ToR drafts finalized by expert(s) October 5
Second expert(s) debriefing in Brussels Octoberr 2
If needed, 3rd expert(s)  mission to Turkmenistan TdD 7
ToR and final report finalized by expert(s) TbD 5
  • Ø Location(s) of assignment

Brussels and Turkmenistan

 

  1. 5. REPORTING
  • Ø Content

The final report prepared by the framework contractor under this contract will be a consolidation of all output documents of each of the assignments.

The final report should bear the following statement on the inside title page: “This report was prepared with financial assistance from the Commission of the European Union. The views expressed herein are those of the Framework contractor, and do not represent any official view of the Commission.”

  • Ø Language

All reports shall be drafted in English and in accordance to the EU guidelines on visibility available from the EuropeAid website at:

http://europa.eu.int/comm/europeaid/visibility/index_en.htm

  • Ø Submission/comments timing

The final report shall be submitted within 1 month after the end of the assignment.

  • Ø Number of report(s) copies

The final report will be provided on electronic format and in 2 hard copies.

 

6. ADMINISTRATIVE INFORMATION

  • Ø Management

The EuropeAid Cooperation Office of the European Commission in Brussels will be responsible for managing the contract and is also the Contracting Authority for this project. The contact in EuropeAid is Ms Svetla Shulga, Project Manager, svetla.shulga@ec.europa.eu, tel.: +3222964852, who will be the focal point for this contract.

  • Ø Backstopping & support

The contractor will make available an appropriate management and backstopping mechanism including secretariat and office support needed for the expert in his/her execution of the tasks required by the Commission.

  • Ø Other authorized items to foresee under ‘Reimbursable’

Besides “Per Diem”, “Flight Tickets”, “Car hire”, translation of reports and local interpretation no other reimbursable costs may be charged.

 

Reimbursable costs envisaged
Tasks to be performed
Per Diem Maximum 12 days in Brussels
30 days in Turkmenistan
Travel 3 return flight tickets to Brussels
3 international return flight tickets to Central Asia (Turkmenistan)
Car hire or local flights in Turkmenistan up to a maximum amount of €2.000 in total.
Translation of reports and local interpretation to a maximum amount of €3.500 in total

 

  • Ø Annexes

Annex I “Identification Fiche”