1 INDONESIA INFRASTRUCTURE FINANCE DEVELOPMENT - IIFD
TERMS OF REFERENCE FINANCE SPECIALIST COMPONENT - I, TF0A2268
Introduction
The Ministry of Finance has established Public Private Partnership (PPP) Unit named Directorate of Government Support and Infrastructure Financing Management, DGFRM – MOF in 2015 aiming to support infrastructure development in Indonesia through private participations. PPP Unit will work closely with the Government Contracting Agency (GCA) on the PPP project development and with other agencies on the provision of Government support. In addition, the unit also plays important roles such as undertake PPP awareness campaign and providing the capacity building to the GCA and other relevant stakeholders.
In order to fulfill its roles, PPP Unit requires an extensive support at the initial operation stage. The support will comprises of technical assistance and advisory functions in managing the Project Development Facility and Government Support provision as well as performing other roles. The assistance and advisory services are also required to help PPP Unit in developing its strategic plan and resolve PPP related issues facing the unit.
2 bidding. Through IIFD-TF, the PPP Unit will procure experts and specialists that have expertise in areas related to the PPP Unit roles.
One of the specialist is Economic/Finance Analyst. The consultant is expected to provide practical advices and work closely with the PPP Unit staff on the economic/financial aspects of the project. The consultant is also expected to assist in the development of internal guidelines/mechanism to deal with the economic/financial aspects of the PPP projects.
This Terms of Reference describes the objectives and scope of the required services, the envisaged outputs, and consultancy inputs, the reporting requirements and the arrangements of the Economic/Financial Analyst.
Objective
The objectives of the Economic/Financial Analyst services are as follow:
1. Develop tools and internal capacity of MOF PPP UNIT on VfM/Financial/Economic/Risks Evaluation related to the provision of Government support;
2. Create a better accountability on the use of Project Development Fund (PDF), Viability Gap Fund (VGF), and guarantee as Government Support;
Responsibilities and Scope of Work
The Economic/Financial Analyst will be part of the Core Consultant Team under coordination of The Senior Infrastructure Consultant. The scope of work will be as follows:
1. Review (i) the existing guidelines on Finance/ Economic/ Risk/ VfM and VGF/AP developed by MOF, KPPIP, IIGF, SMI, etc; (ii) studies results of WB, ADB, DFAT/IndII, JICA, etc; (iii) related international best practices, make recommendations to use as reference for PPP analysis/ assessment;
2. Provide recommendation on Financial framework to ensure the role of VGF as the last resort on Government Support;
3. Provide assistance on economic and financial analysis in relation to VGF, AP, and guarantee evaluations of PPP Project;
4. Assist economic and financial analysis in relation to the PDF proposal;
5. Build the capacity development of PPP Unit staff on project economic/financial assessment;
6. Undertake the project related Ad-hoc assignments.
The detailed working plan will be developed by consultant and approved by PPP Unit on semi-annually basis and reviewed on a quarterly basis.
Deliverables
The Finance Specialist is expected to provide some deliverables as follows:
1. Review and recommendation for PPP Financial Guidelines (including VGF, AP, etc.), PPP
Economic Guidelines, Risk Guidelines, Value for Money Guidelines;
3 3. Economic and Financial analysis in relation to VGF, AP, Guarantee evaluations of PPP
Project;
4. Evaluation reports on economic and financial analysis in relation to the PDF proposal; 5. Capacity development of PPP Unit staff on project economic/financial;
6. Reports or notes on project related Ad-hoc assignments.
Expected Results/Outcome
1. Presence of tools and internal capacity of MOF PPP Unit on VfM/Financial/Economic/Risks Evaluation related to the provision of Government support;
2. A better accountability on the use of PDF, VGF and guarantee as Government Support.
Period of Assignment
The Finance Specialist (the consultant) shall perform the services on a time based basis. The duration for these services is one year commencing in October 2017 through September 2018.
Activity Management
The Consultant will report to Director of PPP Unit in coordination with Senior Infrastructure Consultant on a regular basis indicating the consultant’s working plan as mentioned in section III (Scope of Work).
For major activities, reports should be issued as drafts and finalized with due regards given to comments received from the client. All the technical reports should be submitted in line with the agreed working plan.
Progress Reports documenting the consultant’s work program and progress towards its achievement. The progress reports will be made on quarterly basis and should be submitted no later than the end of the quarter period. The quarter period is counted from the contract signing date. One copy of The Quarterly Progress Report will be used as supporting document.
4 Qualifications
The Consultant will possess the following qualifications:
a. A Master (S2) degree in economy, finance, and or business management with at least 10 years of relevant experience, in particular with 5 years experiences in the field of project economic analysis, risk allocation, tariff, and financial tool of private infrastructure investments;
b. Familiar with all aspects of financial sectors and markets in private provision of infrastructure in Indonesia, particularly in the transportation, telecommunications, urban infrastructure sectors, in corporation/ privatization of those sub-sectors, and also in technical matters of those sub-sectors;
c. Understanding of public finance including the Viability Gap Funding and Government Guarantee concept and procedures;
d. Direct experience in the PPP project preparation and transaction, particularly the development of project economic/financial model;
e. Familiarity with the PPP Unit or other PPP institutions procedures, business process and manuals
f. Proven ability to work independently with limited supervision and operate effectively in a team environment.
Annexes:
A. For ICT or business process improvement consultancy services, provide an Annex that will describe in sufficient detail the existing system that will be improved or enhanced. This Annex will become part of the TOR that will be shared with prospective bidders/consultants.
