THIRD SUSTAINABLE LIVELIHOODS PROJECT (P125232)
TERMS OF REFERENCE FOR A SHORT-TERM CONSULTANCY SERVICE ON DEVELOPING A LEGAL AND REGULATORY FRAMEWORK FOR TRANSPARENT PUBLIC DISCLOSURE OF THE DONATIONS AND ASSISTANCE GIVEN TO THE LOCAL ADMINISTRATIVE BODIES BY THE COMPANIES OPERATING IN THE MINING SECTOR AND TURNING THEM INTO RESOURCES FOR LDF
The Government of Mongolia has been introducing a mechanism of promotion of the Local Development Fund or re-distribution of mining revenues into local budgets under the Budget Law since 2013. The mechanism aims to promotion of sustainable socio-economic growth in rural areas by creating an enabling environment that is safe and healthy for the rural populations while discouraging migration from rural into urban areas.
The Local Development Fund is the financial instrument for budget transfers which are used for the implementation of the projects and programs for supporting local economic development and creating improved living and working environments based on proposals and initiatives of local communities of the areas.
To date, the revenues source of the Local Development Fund (LDF) is made by 10 per cent of mineral resource royalty/AMNAT/, 30 per cent of petroleum resource royalty/GTNAT/, certain portions of mining and exploration license payments, and donations, assistance, and funding from international organizations. Revenues into LDFs are increasing from year to year. However, the fields such as contributions by mining companies to local development, environmental restoration or elimination of damages to the environment, and job creation in local areas are still inadequate and limited. Accordingly, local people are often against any mining operations within their territories. On other hand, the donation and assistance officially and unofficially provided by business (mining) entities to local governmental institutions, non-governmental organizations, and individuals were estimated at a total of MNT 75.5 billion in 2020, according to a survey carried out by an international organization.
The main purpose of this assignment is to study the context with a major focus on the tasks to ensure transparency of payments of donations and assistance by mining companies to government administrations and stakeholders in the local areas, where their businesses are run, to make these sources a source of LDF, and to promote employment of local communities in mining operations through offering job opportunities to them, to increase local communities benefits from mining operations, and to define improved legal and regulatory framework that is applicable to all the contexts the aforesaid.
OBJECTIVE OF THE ASSIGNMENT
The purpose of this consulting service is to improve the cooperation between mineral licensees/license holders and local communities and to improve the regulation of donations and assistance given by licensees/license holders to local communities to support participatory and responsible mining operations in local areas. In this way, it will encourage the development of responsible, transparent, and community participatory mining operations in local areas through the promotion of employment opportunities for local people of the soums /districts that are directly affected by mining operations.
SCOPE OF WORK
The consultant will perform the following tasks:
• To study international experience in improving the transparency of enterprises operating in the field of mining and extraction, improving the control of local communities, and increasing the benefits local communities receive;
• Analyze the results of Extractive Industry Transparency Initiative studies and reports, quantitative data on local donations, and develop proposals and recommendations;
• Research the legal environment in connection with the inclusion of donations and assistance from the extractive industry in the resources of the LDF, and determine the relationship with the registration, expenditure, and public reporting of resources;
• Develop proposals and recommendations for changes to laws and regulations based on research results, and report to the Ministry of Finance and related organizations.
• During the assignment the short-term consultant will cooperate with PIU, the Ministry of Finance, and other relevant government agencies, donor organizations, Aimag-level support teams, and other stakeholders under the leadership of the project director.
EXPECTED OUTPUTS AND DELIVERABLES
The consultant will be expected to develop and present the following products at the end of the assignment:
• Conduct research on international best practices to improve transparency and public control of extractive industries;
• Analysis of donations and aid data spent locally by enterprises operating in the mining and extraction sector;
• Assessment of the preliminary impact on local development by including legal framework research, donations, and assistance in the formation of LDF resources;
• Develop proposals and recommendations based on research and analysis, and draft necessary procedural changes.
• A suitable candidate should have a bachelor's degree or higher in economics and finance;
• Have a relevant experience and knowledge of the state budget and LDF;
• Experience in conducting research and reporting (it will be an advantage if the candidate conducted research in the field of Economics and participated in academic conferences);
• Have excellent skills to prepare reports in English and Mongolian and present the reports at the management level.
CONTRACT DURATION AND CONDITIONS:
The assignment is expected to commence on October 17, 2022, with the expected input of up to 67 man-days until the period ending January 17, 2023. The Consultant will be selected in accordance with the World Bank Guidelines: Selection and Employment of Consultants by World Bank Borrowers, July 2016.
If you possess the indicated qualifications, please submit a cover letter, indicating why you consider yourself suitable for the position, with a detailed CV highlighting skills/experience, a copy of diplomas or certificates and two reference letters from last employers no later than 12:00 PM, October 14, 2022. Only successful candidates will be contacted. Application documents shall be submitted in person to the below address. Submitted documents will not be returned to the applicants. Incomplete applications would not be considered. If you need any further details, please feel free to contact us.
Contact address: Procurement Specialist, SLP-3, 8th Floor, Tod Tower, Ankara street-23, 4th khoroo, Chingeltei district, Ulaanbaatar, Mongolia. Tel: 7000-9828.2022 оны 10 сарын 07