National Consultant – Innovative Finance Expert

INDIVIDUAL CONSULTANT PROCUREMENT NOTICE

National Consultant / Innovative Finance Expert

Reference No.: UNDP-NPL-00343 (UNDP/PN/2024/49) Date: 26 August 2024

The United Nations Development Program (UNDP) in Nepal has been implementing the Effective Development Financing and Coordination II (EDFC II) project, led by the Ministry of Finance’s (MoF) International Economic Cooperation Coordination Division (IECCD) and supported by UNDP is assisting the Government of Nepal (GoN) through capacity development initiatives to strengthen approaches to mobilizing, coordinating, and effectively managing international development cooperation. It is seeking services of an individual to perform the work described in this document.

In consideration of your qualifications, we are hereby inviting you to submit an offer for this particular assignment. To assist you in understanding the requirements of this assignment, we have attached hereto the following :

• The Terms of Reference for the assignment described above.
• The standard Letter of Confirmation of Interest and Availability, which you must accomplish and submit to UNDP; and
• The Individual Contract and its General Terms and Conditions, which you would be expected to sign in the event you are the selected Offeror in this procurement process.

Should you be interested and decide to submit an offer for this assignment, kindly submit directly in the online supplier portal no later than the deadline indicated in the system. If any discrepancy between deadline in the system and in deadline indicated elsewhere, deadline in the system prevails.

We look forward to your favorable response, and thank you in advance for your interest in working with UNDP.

1. BACKGROUND

Nepal faces numerous challenges in financing its development needs. With aspirations to graduate from Least Developed Country (LDC) status by 2026, Nepal requires substantial investment in infrastructure, healthcare, education, and sustainable development. On the one hand, the government's capacity to invest in infrastructure is declining, on the other hand, the need for investment in infrastructure is increasing day by day due to the impact of global infrastructure development, climate change, increasing access to information technology and the need of the hour.

Nepal is also confronted with considerable financing needs for its SDG’s and NDC’s. The NPC 2018 report on Nepal financing needs for achievement of SDG’s shows that the country would face a financing gap of nearly USD 5 billion per annum leading up to 2030. In addition, on climate change finance the country’s Nationally Determined Contribution (NDC) costs are estimated at USD 28.4 billion – of which, USD 25 billion are conditional on realizing relevant financing needs.Nepal also has developed a comprehensive National Adaptation Plan (NAP) that carries a financing requirement of USD 47.4 billion till 2050. Managing the country's public expenditure is gradually becoming challenging. Traditional sources of financing, such as government revenue and international aid, are often insufficient to meet these needs.

Various alternative finance tools are now being used in the world for the development of infrastructure and productive sectors. Alternative finance, which is playing an important role in development finance globally, is also relevant in Nepal particularly at a time when the country's government finances alone are not sufficient for developing infrastructure.

All these financing requirements necessarily warrant consideration of financing instruments – particularly in the post-graduation setting and careful planning and structuring of same. There is a growing interest and need in exploring alternative financing mechanisms, including mobilizing bonds, innovative finance, and blending finance. It is required to develop necessary arrangements based on the experience that other countries with economies like Nepal have successfully used instruments such as green bonds, sustainable development bonds, clean energy bonds and infrastructure bonds, debt swaps, matching funds and guarantee. There is also a need to develop a feasible project pipeline to increase the leverage rate of development assistance by mobilizing private capital through innovative methods of public-private partnership such as blended finance, hybrid annuity. For its successful implementation, Ministry of Finance is working to develop necessary policy and procedural arrangements with clear roadmap and action plan also considering the ongoing process of developing Integrated National Financing Framework (INFF) and debt sustainability.

The potential for mobilizing bonds, innovative finance, and blending finance in Nepal is significant. These mechanisms can provide much-needed capital for development projects, drive economic growth, and enhance financial inclusion. However, to realize this potential, Nepal needs to establish a conducive regulatory environment, build institutional capacity, and foster a culture of transparency and accountability. By leveraging these innovative financing instruments, Nepal can accelerate its progress towards sustainable development and economic resilience.

The Effective Development Financing and Coordination II (EDFC II) project, led by the Ministry of Finance’s (MoF) International Economic Cooperation Coordination Division (IECCD) and supported by UNDP is assisting the Government of Nepal (GoN) through capacity development initiatives to strengthen approaches to mobilizing, coordinating, and effectively managing international development cooperation. It is seeking an individual contract to deliver the assigned activities.

Click on the link below for detailed TOR:

TOR for National Consultant – Innovative Finance Expert

Deadline: 06-Sep-24 @ 07:15 AM (New York time)

For additional information and documents and for further application procedures, click on the link below:

Procurement | United Nations Development Programme (undp.org)