Procurement Notices

Project Title:  Governance and Economic Management Support (GEMS) Project

A. Provision of economic advisory services to the Ministry of Finance & Planning

B. Background Information and Rationale, Project Description

After several years of conflict, the government of South Sudan is currently implementing a peace agreement labelled the R-ARCSS. The objective of the RARCSS is to ensure an end to conflict and enable sustainable peace for the people of South Sudan. Despite initial delays, implementation of the RARCSS received much needed impetus with formation of the RTGONU in February 2020. The RTGONU was to ensure that specific provisions of the RARCSS are implemented.

Chapter IV of the RARCSS (resource, economic and financial management) is of critical importance for successful implementation of the Agreement. The Ministry of Finance & Planning is a key institution responsible for coordinating implementation of Chapter IV of the RARCSS. Chapter IV stipulates (Articles 4.3.1.1 – 4.3.1.8) that the Ministry of Finance and Planning shall:

1. Within nine (9) months of the signing of this Agreement, review and implement the Strategic Economic Development Roadmap (national development plan) to accelerate progress in achieving a sustainable and resilient national economy in collaboration and coordination with an inter-ministerial departments and, where appropriate, with development partners;
2. Ensure that all public financial and budgetary commitments entered into by the RTGoNU are transparent, competitive and in accordance with the laws of the country and internationally accepted norms and practices for the management of public finances;
3. Ensure sustainability of public finances across all levels of Government through rigorous adherence to national laws and international standards (including PFMA Act, 2011);
4. Ensure that the National Budget and the budget at each level of Government addresses national priorities, and the realities on the ground without negatively affecting the macroeconomic stability;
5. Within nine (9) months of the Transition, review the Constituency Development Fund (CDF) programme in accordance with this Agreement;
6. Increase partnership, coordination and mutual accountability with development and humanitarian partners to ensure policies, strategies, programmes and projects, and action plans are developed through participatory and transparent mutual consent and accountability;
7. Monitor and evaluate issues of importance, including review of the New Deal Compact in coordination with development and humanitarian partners; and
8. Ensure that development partners and recipients of any development assistance provide timely and comprehensive data on aid flows to the States, sectors and institutions of South Sudan.

The COVID 19 pandemic has negatively impacted the economy of South Sudan and the government’s ability to implement the RARCSS. With oil accounting for over 95 percent of exports, the sharp decline in global demand and prices of crude oil has severely affected government revenues.  The FY 2019/2020 budget experienced a shortfall of approximately 60 percent in oil revenue targets. Similarly, non-oil revenue mobilization experienced significant shortfalls due to trade restrictions imposed to address the COVID 19 pandemic, including border closures, curfews and restriction in movements. The economy has weakened further in FY 2020/2021. GDP growth for FY 2020/2021 is projected to be negative 3.6 percent and government revenues are expected to decline by more than 30 percent relative to FY 2019/2020[1]. Macroeconomic instability characterized by high fiscal deficits (e.g. there is a huge financing gap of 8.2 percent of GDP in the FY2019/2020 budget), triple-digit inflation (170 percent as it stood in October 2019), current account deficit of 6.4 percent of GDP, soaring exchange rate premium (85.2 percent in April 2020, i.e. difference between the official and parallel market rates, is widening), etc.; 

The weakened economy, balance of payment problems and other macroeconomic challenges occasioned by the COVID 19 pandemic is, further complicating the crises of governance and leadership that is already facing South Sudan (Deng et al, 2014).  The delays in the formation of the RTGoNU, including appointment of State Governors & 3 Administrative Areas as well as Commissioners of 79 Counties due to political wrangling undermined the capacity to respond swiftly to the COVID 19 pandemic.

Notably, policymakers took containment measures, with implications on the broader economy. The MoFP is called upon to formulate a realistic response program, which is anchored on the three pillars of consolidating peace, combating COVID-19 pandemic, and stabilizing the economy.

The MoFP requested and UNDP has committed funds through the Governance & Economic Management Support (GEMS) project for international firm to assist the Ministry to perform the following:

1. Formulate a 3-pronged strategy for consolidating peace, combating COVID-19 pandemic, and stabilizing the economy within the overall framework of the National development Strategy (NDS);
2. Design a macroeconomic policy framework consistent with Article 4.3.1.1 of the R-ARCSS (Chapter IV): “review and implement the Strategic Economic Development Roadmap (national development plan) to accelerate progress in achieving a sustainable and resilient national economy in collaboration and coordination with an inter-ministerial departments and, where appropriate, with development partners;”
3. To “undertake immediate and medium-term Economic and Financial Management reform programme” (Article 4.1.7 of R-ARCSS), which is based on building a robust Public Financial Management (PFM) system;
4. Implement institutional reforms as stipulated in Chapter IV of R-ARCSS;
5. Assist the Government with strategies on three transitions – from consolidating peace to sustainable peace, from combating COVID-19 to sustainable healthcare system, and from stabilizing the economy to sustained pro-poor growth and diversified economy;
6. Provide policy advice and policy engagement with the team preparing requests for emergency financing from the IMF, World Bank, African Development Bank, and other development partners; and

C. Objective

To provide technical backstopping (policy advice and policy engagement) to the Ministry of Finance & Planning to engage key stakeholders (IFIs) in developing strategies for three transitions:

1. from consolidating peace to sustainable peace,
2. from combating COVID-19 to sustainable healthcare system, and
3. from stabilizing the economy to sustained pro-poor growth and diversified economy;

A.Consolidating Peace

1. Peace is a necessary, though not a sufficient condition for stabilizing the economy, so as to perform its central purpose of producing increasingly diverse goods and services. Adam Smith reminded policymakers centuries ago about the imperative of peace as follows:

Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and tolerable administration of justice: all the rest being brought about by the natural course of things

1. The framers of the peace agreement would seem to have been informed by the above passage from Adam Smith in stressing the importance of institutional reforms in the process of consolidating peace. Chapter IV of the R-ARCSS specifically stipulates (Articles 4.3.1.1 – 4.3.1.8) that the Ministry of Finance and Planning shall:

a)Within nine (9) months of the signing of this Agreement, review and implement the Strategic Economic Development Roadmap (national development plan) to accelerate progress in achieving a sustainable and resilient national economy in collaboration and coordination with an inter-ministerial departments and, where appropriate, with development partners;

b)Ensure that all public financial and budgetary commitments entered into by the RTGoNU are transparent, competitive and in accordance with the laws of the country and internationally accepted norms and practices for the management of public finances;

c)Ensure sustainability of public finances across all levels of Government through rigorous adherence to national laws and international standards (including PFMA Act, 2011);

d)Ensure that the National Budget and the budget at each level of Government addresses national priorities, and the realities on the ground without negatively affecting the macroeconomic stability;

e)Within nine (9) months of the Transition, review the Constituency Development Fund (CDF) programme in accordance with this Agreement;

f)Increase partnership, coordination and mutual accountability with development and humanitarian partners to ensure policies, strategies, programmes and projects, and action plans are developed through participatory and transparent mutual consent and accountability;

g)Monitor and evaluate issues of importance, including review of the New Deal Compact in coordination with development and humanitarian partners; and

h)Ensure that development partners and recipients of any development assistance provide timely and comprehensive data on aid flows to the States, sectors and institutions of South Sudan.

B.Combating COVID-19 pandemic

The coronavirus has revealed that the healthcare sector in South Sudan is underfunded(only 1.1 percent of FY2019/2020 budgetisallocatedtothiscritical sector), understaffed, and under equipped. South Sudan will have to build a strong health sector in order to respond effectively and efficiently to future disease outbreaks. The Government is thinking of reactivating the primary healthcare system that was established by the High Executive Council (HEC), which was the government of southern Sudan after the Addis Ababa Agreement of 1972. This idea of Community Health Centers (CHCs) will be revisited, at the Boma levels as critical elements of a Primary Healthcare Unit (PHU) at the Payam levels to be served by rural hospitals to provide secondary healthcare at the Countylevels.

The World Health Organization (WHO) defines community health as: “…environmental, social, and economic resources to sustain emotional and physical wellbeing among people in ways that advance their aspirations and satisfy their needs in their unique environment. This definition would guide in the design of a post-COVID-19 healthcare system, which is guided by the theme of protecting lives. But, the cost of containment, prevention, and mitigation of the impact of the pandemic will have to be carried out as soon as it is feasible. The cost of protecting lives will focus on healthcare spending, e.g. on acquisition of emergency medical supplies and hospital equipment, including test kits, PPEs for staff, laboratory equipment, ICU beds, and ventilators.

C.Stabilizing the Economy

The point of departure for stabilizing the economy in the light COVID-19 is to protect livelihoods and the future. Calculating the cost of protecting livelihoods starts with containment measures (i.e. crisis-response measures). As the number cases of the COVID-19 increases, preventive measures in the form of confinement and other physical/social-distancing measures will mostly affect South Sudanese in the followingcategories:

1. Low-income households, especially those employed in the hospitality subsector of the service sector in Juba and other major towns;
2. The unemployed, especially the youth who could easily get involved in criminal gangs and activities, e.g. Toronto Boys, etc.; and
3. The self-employed in general, and particularly those in the informal sector.
4. In the light of the likely impact of COVID-19 pandemic on the above three categories, the Government is planning, though with no fiscal space, to undertake the following:
5. Protect households by strengthening social safety nets (SSN);
6. Protect jobs;
7. Protect food security; and
8. Maintain critical public services, e.g. treasury system operational, keeping banking & payment system functioning.

D. Assignment: Scope of services

The UNDP GEMS project aims to contribute towards setting South Sudan on a path to sustainable peace, development and improved wellbeing for citizens through:

1. Strengthening capacities of key national institutions for effective and accountable implementation of the R-ARCSS
2. Bolstering key economic governance and accountability functions with attention to Chapter IV of the RARCSS

The project focus is at the national level and compliments ongoing capacity building initiatives implemented at the subnational level within the Partnership for Recovery and Resilience framework with support from various development partners.

The firm are required to engage with relevant stakeholders including government institutions, development partners, international financial institutions, private sector and civil society to support the MoFP to formulate a strategy on consolidating peace, combating COVID-19 pandemic, and stabilizing the economy within the overall framework of the NDS. Robust technical backstopping, including policy advisory services to the MoFP will form a key component of the engagement.

The firm will be accountable to the Undersecretary of Planning (MoFP) and will maintain an ongoing relationship with UNDP to undertake quarterly review of the contract activities. Based on the expectations, the UNDP is recruiting five consultants in below areas of expertise:

1. Overall coordination of the work of the VEST team (One consultant)

The firm will provide the overall coordination of the work of the VEST team. The Ministry will require a minimum five (5) days to maximum ten (10) working days per month for a period of 12 months. The number of days for each month will be confirmed He will specifically undertake the following tasks:

1. Manage the VEST team and ensure timely delivery of the outputs by the team;
2. Provide technical backstopping to the PFM-Oversight Committee as well as to the PFM-Technical Committee, and PFM-Secretariat;
3. Identify the core technical team that will lead the PFM reform strategy and assist in the development of their skills;
4. Support the MoFP team in the mobilization of resources from multilateral sources (e.g. IMF, World Bank, AfDB) and bilateral development partners;
5. Assist in the continuous realignment of the NDS and R-ARCSS within the overall framework of the annual budgeting process;
6. Assist the MoFP in the preparation of the annual budget plans as well as in the execution of the approved annual budgets;
7. Provide technical backstopping in the analysis of external and fiscal financial needs;
8.     Assist in the transformation of the current Government Training Center into an Economic Transformation Institute (ETI), which will conduct training and applied research in the various aspects of the economy;
9. Assist in the identification and mobilization of South Sudanese nationals in the diaspora through Transfer of Knowledge Through Expatriate Nationals (TOKTEN); and
10. Provide policy advice to the Minister of Finance and Planning.

Macroeconomic framework: (One consultant)

The consultant will lead the Virtual Economic & Social Transformation (VEST) support in the design of macroeconomic framework for South Sudan. The Ministry will require minimum five (5) days to maximum ten (10) days per month for a period of 12 months. He will specifically perform the following:

1. Provide on the job on-line training to the staff of the Macroeconomic Policy Department, MoFP;
2. Assist in the preparation of policy briefs on overcoming policy and institutional constraints to economic diversification in South Sudan;
3. Provide scenarios for diversifying the economy and reduce dependency on the oil sector;
4. Guide the implementation of Chapter IV of R-ARCSS; and
5. Provide technical backstopping to the MoFP in the mobilization of resources from the donor community.

Implementation of the PFM (One consultant)

The firm will take the lead in the design and implementation of the Public Financial Management (PFM). The Ministry will require minimum five (5) days to maximum ten (10) days per month for a period of 12 months. Specifically, the consultant will do the following:

1. Guide the preparation of the PFM strategy;
2. Provide technical backstopping to the PFM Technical Committee and PFM Secretariat in their support to the PFM Oversight Committee;
3. Assist MoFP to review and verify all Loans and Contracts collateralized or guaranteed against crude oil as called for by the R-ARCSS (Article 4.8.1.3);
4. Assist in the preparation of policy briefs in PFM; and
5. Provide advice to BoSS in the management of foreign exchange reserves.

Institutional reforms and strengthening (One consultant)

The firm will take the lead in supporting the MoFP to undertake institutional reforms and strengthening of associated capacities to implement the NDS. The Ministry will require minimum five (5) days to maximum ten (10) days per month for a period of 12 months. He will specifically undertake the following tasks:

1. Assist in the strengthening of analytical capabilities of the staff of MoFP;

1. Provide a roadmap for the implementation of institutional reforms as stipulated in Chapter IV of R-ARCSS;

1. Assist in strengthening national capacity for designing and implementing evidence-based policies by creating an institutional and policy framework, which will generate empirical evidence and research-based knowledge on policy options to rehabilitate and recreate the agricultural sector in order to enhance food security;

1. Formulate a strategy for the development of private and cooperative sectors as engines of job creation in the economy of South Sudan;

1. Follow up the findings of the Institutional Readiness Assessment (IRA) and formulate a strategy for enhancing capacity among knowledge providers in the Government and policy community to fill key knowledge gaps in order to help in the design and implementation of South Sudan’s development strategy;

1.   Conduct policy debates for senior policymakers in South Sudan; and

1. Prepare policy briefs for senior policymakers, including the Presidency.

Monetary policy and institutional strengthening (One consultant)

The firm will support the team in the area of monetary policy and institutional strengthening of BoSS as stipulated in R-ARCSS (Article 4.2.1.1). The Ministry will require minimum five (5) days to maximum ten (10) days per month for a period of 12 months. He will specifically undertake the following tasks:

1. Assist in the coordination of monetary and fiscal policies in the design and implementation of the proposed 3-pronged response program;

1. Provide support to the effective management of public debt (domestic and external);

1. Coordinate with Meshack Tjirongo in providing technical support to the management of foreign exchange reserves as well as in the operationalization of an effective inter-bank market for foreign exchange;

1. Support the timely release of balance of payments outlook; and

1. Provide on-line training to the staff of BSS in the critical areas of central banking.

F. Expected Results:

1. Within 15 days of contract signing, the firm shall submit an inception report detailing the methodology of work based on discussions with the Ministry of Finance & Planning, Bank of South Sudan.

1. The firm shall submit a written report to the MoFP and the GEMS project at UNDP within two (2) weeks after completion of the work and this report will include:

• A detailed narrative of the technical advisory support provided by each consultant to specific units of the MoFP and/or BSS every month

1. The firm shall submit a final written report to UNDP within two (2) weeks prior to the end of the Contract.

Duration:

The contract is planned to be awarded in December 2020 and for a 12 months period. A maximum of 10 days per month shall be required for the consultancy.  It is expected that each expert will be required to work an average of 5 days per month.

72 hours issuance Notice to Proceed will be given and will provide the number of days required for each expert in consultation with the Government of South Sudan. It is expected that the required number of days for each expert for each month will be provided on a monthly basis.  UNDP will pay based on the agreed number of days provided to the consultancy.

Duty Station

The consultancy is virtual. However, UNDP/GEMS may request for in country work support, related cost including travel (round trip economic class airfares to and from duty station), in-country transportation and living allowances. Any other travel related costs will be borne by the firm.

Breakdown of Professional Fees

The firm shall allocate only one consultant to one position.

Table: Breakdown of Professional Fees

F. Qualification of the Organization

The organization should have the status of a legally registered entity:

-  The organization should have the status of a legal entity, with at least 5 years of proven experience in economic policy development, development management, monetary and fiscal policy formulation and implementation, national planning and advisory services with major international financial institutions;

-  Organization profile/portfolio with description of proven records and experience in the area of required specific expertise;

-  Experience in assistance to the state institutions, 

Key Personnel Qualifications:

• To implement this project the following are required as per the profiles below:
• The firm must attach the Curriculum Vitae (CV) and experience portfolio for each member in the bid proposal.
  1. Team Leader/Coordinator
     1. Qualifications: PhD’s or Master’s degree in Economics, Public Administration, Development Studies, and Social Sciences or equivalent.
     2. Experience: 10 years of international professional working experience in relevant fields of Economics, Governance, Public Administration and Education. 5 years supporting state institutions
  2. Experts (four)
     1. Qualifications: PhD’s or Master’s degree in Economics, Public Administration, Development Studies, and Social Sciences or equivalent.
     2. Experience:  5 years or more of professional working experience in relevant fields of economics, Governance, Public Administration and Social Science, with international financial institutions including the World Bank, African Development Bank and the International Monetary Fund (IMF).  5 years or more supporting state institutions, including Ministry of Finance, Central Banks, etc

• Any changed in personnel must have prior agreement by UNDP.

Payment Mode

The firm will be paid upon acceptance and approval of the deliverables, per the timescale presented in the table below:

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