Iraq Governance and Performance Accountability (IGPA) Project
Title: International Senior Debt Management Advisor
Focus: Support the creation of Debt Management Office (DMO) in the KRG Ministry of Finance and Economy
Period of Performance: Estimated 180 working days LOE; on/around November 2020 - June 2021
The purpose of the Iraq Governance and Performance Accountability (IGPA) project is to advance effective, accountable, and transparent governance in Iraq. The USAID effort, works with the Government of Iraq (GOI), including the Kurdistan Regional Government (KRG) at all levels to better responds to citizen needs by supporting the reform initiatives and Iraqi change agents on inclusive governance and public sector transparency, accountability, and economy. “Reform Initiatives” includes support to improve service delivery functions, public financial management, and open government initiatives. IGPA will support the GOI and the citizens of Iraq in forming partnerships and collaborative efforts to solve problems jointly. IGPA has four (4) objectives:
- Enhance GOI service delivery capacity
- Improve public financial management
- Strengthen monitoring and oversight of service delivery and public expenditures
- Support Iraqi change agents (cross cutting objective)
IGPA also supports the KRG in fulfilling its Economic Reform Agenda with reforms aimed at strengthening public financial management and specifically the debt management function within the KRG.
In recent years, budget allocations from Baghdad to the KRG were affected negatively due to political and financial issues. The tension between the Government of Iraq (GOI) and Kurdistan Region of Iraq (KRI) over disputed areas combined with a national budget deficit due to sharp drop in oil prices and war on Da’esh resulted in cash shortages. The budget deficit and lack of available funds affected both the KRG operating and investment budgets, resulting in the accumulation of debt for the first time.
Unable to meet commitments and contractual obligations for the private sector and other suppliers of public goods, the KRG had to borrow funds from international organizations and foreign countries to finance its deficits. The accumulation of domestics and foreign debt required the establishment of a Debt Management Office (DMO) to create a system and processes to better manage the KRG’s debt obligations. The KRG also needed to rationalize the selection and funding of capital investment projects.
The Debt Management Office is the main unit of the Kurdistan Regional Government (KRG) that will work to monitor and manage the financial arrangements and issues with overseeing the daily activities of the government’s cash flows.
The main purpose of this activity is to support the KRG in implementing the reform activities that the KRG Ministry of Finance and Economy has planned to better control the debts, assets and liabilities of the KRG. The newly established Debt Management Office will enable the government better manage existing debt obligations and set policies and procedures to manage future debt arrangements. The technical assistance provided by the IGPA supported international and local debt management experts will enable to DMO to become operational and fully functional to eventually transfer the function to the Ministry of Finance.
The main objectives of the debt management expert scope of work are to:
- Conduct an assessment to determine what is needed to establish a permanent debt management unit in the MOFE and a plan to transfer the unit to MOFE when the current DMO is fully functional and operational
- Develop the policies and procedures, manuals to guide the operations and functions of the Debt Management Office and the organizational structure for the Debt Management Office with functional and job descriptions to eventually be transferred to the MOFE
- Develop and implement training and development programs based on the needs of the DMO and the debt management staff
- Provide technical support to the DMO staff to carry out the DMO function based on the relevant government staff in the select Ministries to enable them to operate based on the requirements for public debt management.
Specific Tasks of the Consultant
Under this Scope of Work, the Consultant shall contribute to performing, but not be limited to the following specific tasks:
Task 1: Conduct an assessment to determine what is needed to establish a permanent debt management unit in the MOFE and a plan to transfer the unit to MOFE when the current DMO is fully functional and operational. The situational assessment will help the debt management consultant to understand the needs of the KRG as a government, KRG MoFE and line ministries to implement debt management and financial policies according to international best practices. Moreover, it will help the debt management consultant to develop and implement the training programs needed to build the financial capacity and expertise for a fully operational debt management unit to be transferred to the MoFE as well as line ministry staff carrying out debt management and financial obligation related tasks.
Task 2: Develop the policies and procedures, manuals to guide the operations and functions of the Debt Management Office and the organizational structure for the Debt Management Office with functional and job descriptions to eventually be transferred to the MOFE. Under this activity, the consultant will develop the public debt management policies, rules, regulations, manuals and/or guidelines required for a fully operational debt management unit and function. A related subtask will be to develop the organizational structure for the Debt Management Office that will be established in the Ministry of Finance and Economy with the functional and job descriptions to be implemented as part of this Debt Management Function assistance and support. Through this task, the consultant will be able to finalize the tasks and activities for building capacity of the MoFE DMO staff and finance department at the line ministries for trainings, technical assistance and development of a DMO tools and policies.
Task 3: Develop and implement training and development programs based on the needs of the DMO and the debt management staff. Under this task, the consultant will work on delivering all public debt management training for DMO and line ministry staff working on managing any debt and financial obligations.
Task 4. Provide technical support to the DMO staff to carry out the DMO function based on the relevant government staff in the select Ministries to enable them to operate based on the requirements for public debt management. Under this task, the international consultant will provide continuous technical assistance and capacity building to the DMO staff and line ministry staff to carry out the policies and procedures and related guidelines for the DMO function.
Task 5. Prepare a final progress report. The progress report will summarize the Consultant’s actions, achievements and recommendations throughout the period and will include the following in annexes: dates, participants, and notes from all meetings with GOI/KRG officials and key local stakeholders.
The international consultant will be responsible for providing weekly reports to report on the progress on achieving milestones and deliverables. Weekly reports should be submitted to the PFM Lead/Regional Technical Coordinator every Tuesday for the previous week from Wednesday to Tuesday.
- At a minimum, Master’s degree in finance or a related field
- 10+ years of experience in debt management financial matters
- Relevant international experience in governmental debt management policies and systems and advising national governments on debt management
- Experience in data analysis and reporting for debt management
- Significant experience in legal matters related to debt management
- Excellent written and oral communication skills
- Good understanding of the political and public sector sensitivities related to debt management policies and operations
- Adaptability and flexibility in working in complex and dynamic environments
The International Senior Debt Management Advisor will be based in Erbil, Iraq and embedded in the DMO unit to provide the debt management advisory work under this scope of work.