Consultant- Public Finance Management (PFM) Expert

Purpose and Objectives

ADPC is implementing two studies supported by the Coalition for Disaster Resilient Infrastructure (CDRI) on “Assessment of fiscal risk due to disasters on critical infrastructure”. One part of the study covers for Indian States (Odisha, Tamil Nadu, Gujarat, Himachal Pradesh) and another national assessment covering India, Nepal, Fiji, Mauritius.

The key elements of the assignment are:

(1) A budgetary analysis of the allocations and expenditure carried out in the post-disaster phases with specific reference to infrastructure sectors: power, transport (roads & bridges) vis-à-vis the estimated disaster losses. The assessment will provide an estimate of historical direct losses and damages in monetary terms, normalized with some underlying unit (e.g., economic loss per person affected, people affected as percentage of total population). The assessment will also estimate post-disaster funding gap, overall and in respective infrastructure sectors.

(2) Estimation of Indirect Effects of disasters: sector-specific estimation; how losses in one sector translate to losses in the other related sectors (e.g., impact on transport sector spilling-over to local economy or State GDP at large). The assessment will quantify the indirect effects of disasters in terms loss of income, value added or economic output.

(3) A modelling exercise (Probabilistic Assessment) of disaster-related loss and damages to project future risk exposure (in financial terms) and funding requirements for the government. The modelling will consider changing exposure and hazard scenario and will also incorporate the probabilistic effects of climate change.

Accordingly, the assignment will have FIVE major output sections:

1. Fiscal risk assessment based on the historical disaster losses (Basic Statistical Assessment)
2. Review of existing DRF policies and budgetary arrangements for funding post-disaster losses to examine post-disaster funding gap, if any
3. Estimation of the indirect effects of disasters through economic modelling
4. Projected fiscal risks due to severe disasters through Catastrophic Modelling
5. Recommendations for governments on DRF solutions based on the above-mentioned analysis and international experience in DRF.

Expected Outputs

The PFM Expert will be responsible for supporting the project activities in India as well as other project countries (Nepal, Mauritius, Fiji). The outputs expected from the Consultant are:

1. Review of existing budgetary provisions for financing post-disaster losses (part II of budgetary analysis) (activity 4)

Deliverable: Report section for the fiscal risk study for each country (4 total by understand the current disaster risk financing environment in each selected country, including the specific mechanisms and processes in place, the hazards and assets or activities covered by the current national framework, and the amount of funding available.

The deliverable will describe the sources of information relied on and present a well-structured summary of the financial provisions in place in each country.

Word document/Data Formats

2. Funding gap assessment (activity 5)

Deliverable: Report section for the fiscal risk study for each country (4 total). The deliverable will be based on current funding arrangements from activity 4 and expected funding need scenarios developed from activities 2 and 3, with focus on the timeframe of funding needs and the potential for long term reconstruction efforts to be disrupted by subsequent disasters requiring emergency response.

Word document

3. Recommendations for governments on DRF solutions based on the abovementioned analysis and international experience in DRF (activity 6)

Deliverable: Report section for the fiscal risk study for each country (4 total) with risk-layered disaster risk finance strategy to mitigate the fiscal risks of disasters which affect critical infrastructure sectors. Strategy may include investments in resilience and funding strategies for those investments or policies to reduce exposure and vulnerability as appropriate.

The deliverable will consider the funding gaps identified across different return periods, hazards, and sectors, and develop a comprehensive strategy for each of the four countries studied.

Word document

Responsibilities and Tasks

Reporting to the Team Leader of the CDRI1 and CDRI2, the Consultant-PFM Expert will be required to perform the following tasks:

1. Review of existing budgetary provisions for financing post-disaster losses

1. A review of the overall DRM plans and policies of the national and state governments and where public finance assessment of DRM.
2. A detailed review of the existing public finance management policies of the governments along with the standard operating procedure (SOP) of budget execution that comes into effect during different phases (viz., response, recovery, and reconstruction) following a disaster.
3. Review of the existing budgetary provisions, funding sources, historical expenditure patterns and post-disaster funding priorities of the governments.
4. A historical record of the disaster-related expenditure of the government considering the three post-disaster phases: emergency response, short-term recovery through repairs and restoration of physical infrastructure, and long-term reconstruction should be embedded into the review process.
5. Draft a report section in consultation with CDRI team and present the same for internal discussion.

2. Funding gap assessment

1. Develop a methodology for post-disaster funding gap assessment
2. Analyze the post-disaster funding gap considering the three post-disaster phases (e.g., short-term gap: up to 3 months, medium-term gap: 3-12 months, and long-term gap: more than 12 months) with a specific focus on critical infrastructure sectors: power, roads & bridges, telecom, and residential housing.
3. Develop specific case studies for funding gap assessment during severe disaster events considering the abovementioned post-disaster phases and infrastructural sectors.
4. Examine the effects of consecutive disasters on the long-term funding gap (reconstruction phase).
5. Draft a report section in consultation with CDRI team and present the same for internal discussion.

3. Recommend policy options

1. Options for improving post-disaster budgetary allocation and mechanism for improving the budget execution.

2. Recommend alternative DRF solutions for the government based on the above analysis and international experience.

3. Draft a report section in consultation with CDRI team and present the same for internal discussion.

   4. Disseminate the findings to relevant stakeholders.

   1. Identify relevant stakeholders at the national and sub-national levels and educate them on the relevance and other aspects of the study’s findings and recommendations.
   2. Organize workshop/seminar to disseminate the information to the relevant stakeholders.

Working Principles

The Consultant will report to the Deputy Executive Director (DED) of ADPC who serves as the Team Leader of CDRI1 CDRI2 projects.

The Consultant is also expected to collaborate with the project team composed of disaster risk management, and disaster risk finance specialists.

Qualifications

• A master or equivalent qualification in the field of public finance management, economics, business administration, public accounting or similar area of expertise.
• At least 10 years of experience in the area of public financial management, specifically in one or more of the following areas: budget preparation and execution processes; public investment management; experience in analytical work related to public financial management and public expenditure analysis and minimum 8 years of experience in dealing with climate expenditure.
• Minimum of eight (8) years of professional experience of working in Asia and the Pacific region
• Knowledge of decentralization/local governance, especially in one or more of the following areas: fiscal decentralization and subnational planning.
• Proven experience with economic analysis, public finance and investments in disaster risk reduction will be an asset
• Proven capacity building experience, and conducting trainings on economic governance and development, investments and/or disaster risk reduction
• Proven experience and understanding in the country public expenditure, finance and fiscal policy processes; knowledge of decentralization/local governance, especially in the area of fiscal decentralization.
• Team work with strong communication skills and capacity to work under pressure and short deadlines
• Cross cultural awareness and ability to work amongst a diverse group of staff and partners
• Excellent English proficiency in oral and written communication, including a demonstrated track record in technical report writing and ability to communicate technical matters effectively to general audience.

Duty Station

The Consultant will be home based, and preferably located in Asia and is expected travel to Bangkok and other project locations for the work assigned to him and approval of the Supervisor.

Duration

01 January 2024 – 31 July 2024

Itinerary

The Consultant will be required to travel for official missions. Travel related cost for official mission authorized by supervisor will be covered by ADPC and in accordance with ADPC policies.

Additional Details (Operational)

Other Payments/Reimbursement

• The Consultant shall be provided or reimbursed international trip (most direct, lowest-cost economy class air ticket) from home country to Bangkok or project sites upon prior approval of the Supervisor.
• The Consultant will be entitled to expenses (including accommodation, per diem, and local travel costs), as per ADPC field travel policy for the official travel assigned and approved by the Supervisor.
• ADPC will assist in VISA for visiting countries. The cost of VISA (if any) will be reimbursed by ADPC

No other terms or benefits except those mentioned in this contract, are provided, expressed, or implied, unless explicitly stated in written agreement between ADPC and the Consultant