Somalia: PPP consultancy services for local government PPP capacity development in Somalia

Organization: International Labour Organization
Country: Somalia
Closing date: 21 Oct 2014

Joint Programme for Local Governance and Decentralised Service Delivery

PPP consultancy services for local government PPP capacity development in Somalia

TERMS OF REFERENCE

Job Title:International PPP specialist

Duty Station:Somalia (Hargeisa and Garowe, Somalia)

Duration of assignment:Nov 2014 - Mar 2015

Background

Public Private Partnerships (PPP) provide a feasible option for national and local governments across Somalia to cope with increasing demands for basic public services despite tight financial and budgetary constraints. Infrastructure requirements to provide safe water, roads, waste services, for example, require sizeable investment, expertise and organizational knowledge. These are some of the stock of ‘capital’ that the private sector can bring to a public private partnership.

Different forms of PPP demonstrate how effective combinations of private and public financing and enterprise can significantly strengthen service provision and improve the wellbeing of people in urban and rural cities and towns. Not all features of PPP’s are well appreciated or understood, however, resulting in some project difficulties or under tapped potential.

PPP bring multiple benefits and risks to the stakeholders involved. Private companies can benefit from profitable investments and operations. Some other benefits to local councils are transfers of technology, employment benefits, and capacity building. However, there are operational, political and financial risks that are borne by central/local governments and the private companies involved in PPP - underlying the need for an appropriate legal, policy and regulatory environment with consistent rules and processes, new forms of contracting and financing, that will ensure credibility and financial sustainability for the partners.

There is general agreement that the PPP approach to public service provision requires a high level and diversity of expertise from the partners. Capacity building of the authorities in charge of the process will have to come in various ways and forms, as the requirements and levels of expertise show a significant variation across local councils in Somaliland and Puntland.

It is in this context that ILO under the auspices of the UN Joint Programme on Local Governance and in partnership with UN Habitat and UNICEF are embarking on a capacity development programme with the purpose of increasing the capacity of central and local governments to promote, develop, operate and manage public-private partnership projects for infrastructure development and the provision of basic services.

By and large public-private partnerships have been conceived and implemented in Somaliland and Puntland without an overall policy framework for PPPs. This was possible because of the vacuum created following the collapse of central government in 1991 and public authority during and immediately after civil conflict in the country. With renewed peace and reconstruction and ongoing efforts aimed at developing the legal and regulatory framework for private sector development, there is an opportunity to engage private sector participation in service delivery.

In saying that, the legal framework for PPP in Somaliland and Puntland remains underdeveloped. Whilst a recently drafted PPP policy is in the stages of Parliamentary approval in Puntland, the present legal frameworks lack in provisions that would regulate with sufficient precision and clarity the development of PPP projects throughout all its phases. Another barrier in developing the PPPs is the lacking capacity of local/central authorities both in developing framework and in implementing the PPP projects. Even though several projects that can be qualified as PPP have or are being developed in both Somaliland and Puntland, still PPP development is only at its beginning, as representatives from authorities are lacking in knowledge, skills and abilities. The first important activity to overcome this barrier is to strengthen the training capacity of national consultants, academia and key government personnel regarding PPP development.

Objective

To build the capacity of central and local governments to promote, develop, operate and manage public-private partnership projects for infrastructure development and the provision of basic services at the local level.

The following are envisaged:

  1. Enhanced capacity of municipalities and government agencies will improve the efficiency and quality of public services and infrastructure through private sector participation;
  2. Increased PPP awareness and capacity of municipalities to create and implement PPPs while improving local governance practices; and
  3. Capacity for improving existing or implementation pilot PPP projects in key sectors by providing technical assistance to selected municipalities in all phases of development, from initial concept through the transparent, and competitive tendering process.

Deliverables

The Consultant will deliver the following outputs of the assignment:

Output 1: Assessment of local government PPP in Somalia

Conduct an assessment of existing local government PPP as the basis for identifying and addressing weaknesses in current PPP projects in Somalia. The assessment will:

1.Describe the status of municipal PPPs in selected sectors, mainly water and solid waste, in Somaliland, Puntland and Mogadishu;

  1. Illustrate the benefits or potential risks that such municipal PPPs represent;

3.Highlight the key issues and challenges faced by PPP stakeholders and to gauge the potential for private sector participation in managing and delivering municipal PPP projects;

4.Make recommendations, including on necessary institutional arrangements, legislative and regulatory requirements to support PPPs in LG service delivery; describe strategies with an accompanied action plan that can be pursued by local and government to enhance PPPs efficiency and leveraging private sector capital, where required.

Methodology to be adopted to assess PPP practices at the local level:

a) Review existing literature from UN agencies participating in Joint Programme on Local Governance, e.g. sector studies in water and solid waste management, review of PPP in Somaliland and Puntland, PPP policy documents, evaluation of PPP projects, etc.;

b) Gather secondary data and undertake primary research, gathering insights from practitioners in PPP projects, through a number of primary interviews and focus group discussions.

c) Prepare the assessment draft report and recommendations (detailing findings under and recommendations as per 1-4 above)

d) Conduct a workshop to:

· Discuss the assessment findings

· Discuss potentials, issues and challenges faced by stakeholders in adopting and implementing PPPs;

· Discuss PPP service delivery models for large and small municipalities;

· Discuss recommendations, strategies and accompanied action plan that can be pursued by local and government to enhance PPPs efficiency and leveraging private sector capital, where required.

Deliverables

  1. Draft assessment report detailing points 1-4 outlined above
  2. Workshop reports
  3. Final assessment report with recommendations and detailed local government PPP strategy and action plan.

Output 2: Build PPP competencies in local government and private sector

  1. Develop a PPP competency assessment tool
  2. Assess competencies in local government and private sector to implement PPP projects, which is often recognised as a major hurdle in uptake of PPP model; and
  3. Develop PPP skills and competency framework for PPP stakeholders.
  4. Develop training material. Taking note of/building on/revising the PPP guide and training guidelines already developed by the ILO Somalia programme.
  5. Conduct PPP Training of Trainers focusing on public/private institutions that will provide and deliver PPP capacity development programmes in designing and implementing PPP projects in Somaliland, Puntland Mogadishu. In order to achieve the objective, the PPP Specialist is expected to carry out the highest level services to assure that as a result of their work the participants:

a) Will possess knowledge on:

· PPP concept - rationale of PPP, characteristics, principles and constraints, types and schemes, area of use, contractual options, problems in developing and sustaining successful PPPs, PPP perspectives and trends, etc.;

· PPP environment - key features required for legal, regulatory, institutional and policy environment at central and local level, etc.;

· PPP project development and implementation - description, phases, components, functional and technical issues, decision making process, performance terms, financial and commercial issues, project appraisal and assessment, project management, contract conditions and negotiations, reporting, communication, etc.; The most appropriate teaching approaches, techniques and methods for PPP trainings.(priory focus will be on PPP service delivery models in the water and solid waste sectors)

Note:

So far PPP across Somalia have not followed due process, bringing into question the lack of rigorous assessments and analysis as the lynchpin of viable PPP projects. It is imperative that the capacity development programme incorporates the following:

· PPP concepts, rationale and contractual options;

· Project appraisal and feasibility studies

· Project finance and investment analysis

· Procurement process

· Community and stakeholder relations

· Contract management

Deliverables:

  1. Report outlining the PPP competency tool to assess capacities required to implement LG PPPs and detailing findings on PPP competencies in local/central government and private sector.
  2. Report defining the PPP skills and competency framework defining key requirements and how these may be developed.
  3. Local government PPP guidelines, training programme developed and training manual, materials and tools.
  4. Training report.

Organizational Setting

The consultant will work in both Hargeisa and Garowe under the technical supervision of the ILO LED Technical Adviser and supported by the LED Officers, and operational support will be provided by the ILO Programme Officers in Hargeisa and Garowe. The consultant shall consult with the JPLG partner agencies JPLG in particular UN Habitat and UNICEF during the assignment.

Inputs

The Project Team will provide the consultant with the necessary information and materials for fulfilment of tasks and will facilitate the necessary meetings.

Qualifications and skills required

Education:PhD/Master degree in Economics, Public finance, Public Administrative Reform or Public Administration or related discipline.

Experience:

· At least 10 years of overall work/professional experience in the field of PPP frameworks development, setting up or implementing PPP projects;

· At least 10 years of working experience in training/teaching on PPP development;

· Experience of work in a related to PPP field in (post)conflict countries, will be an asset.

Abilities:

· Strong communication skills, to develop methodical and training materials;

· Excellent analytical skills and strong commitment to sharing expertise and experience in order to develop capacity of others, and work as a member/advisor of a team;

· Able to work effectively in an environment where systems do not exist or function as they should;

· A high standard of written and spoken English is essential;

· Good PC skills, ability to use Internet browsers.

Personal qualities:Responsibility, punctuality and self-discipline.

Proposal Contents and Evaluation Criteria

All interested candidates will submit the following documents as part of their proposal:

  1. Technical proposal (not to exceed 10 pages) - the technical proposal should reflect how the consulting firm will undertake all of the tasks in the TOR
  2. Financial budget (with explanation of line items)
  3. Appendices

· one page cv of up to five key personnel proposed for the consultancy

· one page general profile of consultants who will be conducting the field-work

· 2-3 page capability statement

  1. Proposals will be evaluated according to the following criteria:

· Proposed personnel (50%) (ability to address different areas)

· Technical proposal (25%)

· Corporate capability (25%)


How to apply:

All Proposals should be sent via email to: hrsomalia@ilo.org with the subject title: “PPP consultancy services for local government PPP capacity development in Somaliano later than 21st October 2014 11:59 PM EAT.

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